The Italian luxury house seems to be on its way to recovey, as it posted increasing revenue and net profit for the first quarter of the current fiscal year. As of the 31st March 2019, the Salvatore Ferragamo Group reported total revenues of 317 million euros, up by 4.3% both at current and constant exchange rates compared 304 million euros recorded in similar quarter in 2018.
By distribution channel
As of the 31st of March 2019, Ferragamo’s retail network counted on a total of 662 points of sales, including 398 Directly Operated Stores (DOS) and 264 Third Party Operated Stores (TPOS) in the Wholesale and Travel Retail channel, as well as the presence in Department Stores and high-level multi-brand Specialty Stores. In the first quarter of 2019 the retail distribution channel posted consolidated revenue up by 3.9% (+3.2% at constant exchange rates), showing a 2.2% increase at constant exchange rates and perimeter (like-forlike), compared to similar period in 2018, despite the negative performance of the secondary channel. The wholesale channel registered an increase in revenue of 5.5% (+7.0% at constant exchange rates), thanks to a positive performance in the main geographical areas and to a double-digit growth in the Travel Retail channel, despite the negative performance of the perfume business.
By geographical area
The Asia Pacific area is confirmed as the group’s top market in terms of revenues, increasing by 7.2% (+7.9% at constant exchange rates3) compared to 2018. To highlight, the solid first quarter of the year performance of the retail channel in China (+21.2%, +17.7% at constant exchange rates). Europe posted an increase in revenue of 2.8% both at current and constant exchange rates, with a positive performance in both distribution channels. North America in the first three months of 2019 recorded stable revenue (-0,7% at constant exchange rates). The Japanese market registered an increase in revenue of 2.1%, both at current and constant rates, with a positive trend both in the retail and in the wholesale channel. Revenue in the Central and South America was up by 13.8% (+12% at constant rates).
By product category
Among the product categories, at constant exchange rates, footwear posted an increase of 7.3% and handbags and leather accessories of 8.7%, while fragrances registered a 24.3% decrease, mainly due to a different timing in products’ launches vs. last year.
Net profit for the period, including the Minority Interest, totalled 11 million euros, marking a 23.5% increase, which totals the 9 million euros reported in quarter one in 2018. The first quarter of 2019 group net profit was 10 million euros, compared to 9 million euros in similar period in 2018, marking an increase of 10.8%.
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