Ferragamo accelerated its recovery, did better than the analysts’ forecasts and returned profitable. Meanwhile, the brand awaits the official start of Marco Gobbetti, the new CEO, on January 1st, 2022. The US and Chinese markets really pushed the brand’s performances in the first 9 months of 2021, which the brand closed with +35% at constant rates, compared to the same period of 2020. Result: revenue reached 785 million euro, which is a value well below the same period of 2019 (-21%), or 994 million.
The footwear and leather goods categories (accounting for 87% of total revenue, equally shared as far as the split goes), grew by 33%. Yet, revenue analysis shows that the brand’s revenue grew by 97% at constant rates in the North American market, during the first 9 months of 2021.
Less explosive, but fairly significant is the recovery of the Asia-Pacific region. Grew by 22% and confirms itself as the most important region for Ferragamo (nearly 40% of total revenue).
Selective price increments
“Revenge spending seems to have moved from one continent to another”, said executive VP Michele Norsa during the conference call with analysts, in relation to a “relative slowdown in China”, according to WWD. Mr. Norsa also revealed how the company has worked on “selective price increases for key categories”, due to the increment in raw material and shipping costs, as well as on the tendency of producing more exclusive and highly artisanal products.
Profitable once again
Analysts cited by Reuters expected revenue to grow about 10% in the third quarter, with operating profits at 16 million euro (source: Refinitiv). Yet, Ferragamo outperformed expectations, with revenue up 17.4% at constant rates and operating profits at 19 million, up on pre-Covid levels and pushing the recovery forward. For the 9 months, profits reached 40 million euro, starting to even the 96 million loss of 2020.