Mixed result for Salvatore Ferragamo

Business in Hong Kong remained negative for Italian luxury brand Salvatore Ferragamo for its first nine months this year, but with slight improvement.

Its Hong Kong retail sales fell by 15 per cent for the period, but that’s is better than the 24 per cent drop for the first half.

China retail sales, however, saw a 3 per cent upswing, with the third quarter accelerating by 11 per cent.

With fewer Chinese tourists, the Japanese market’s revenues decreased by 2 per cent for the nine months, dropping 8 per cent in the third quarter.

For Asia Pacific, revenues were down 4 per cent for the nine months, while the third quarter saw a 10 per cent improvement.

Overall, the group’s revenues eased 7 per cent to €1014 million (US$1085 million), gross operating profit (EBITDA) decreased by the same amount to €216 million, operating profit (EBIT) dropped 2.1 per cent to €170 million, and group net profit grew 2 per cent to €112 million.

Among the product categories, shoe revenues increased by 1 per cent, while handbags and leather accessories were down by the same percentage. Fragrances were down 3 per cent for the nine months, but improved by 3 per cent in the third quarter.

At September 30, the group had 673 points of sale – 396 directly run stores and 277 third-party stores in the wholesale and travel retail channel as well as department stores and high-level multi-brand specialty stores.

With its origins dating back to 1927, the group designs, makes and sells shoes, leather goods, apparel, silk products and other accessories, along with women’s and men’s fragrances. The product range also includes eyewear and watches made by licensees.

The group has about 4000 employees.

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