CRV ruins Ferragamo’s quarter: the luxury brand’s sales decreased by over 30%. The company suspended the payment of dividends on 2019’s profits and created and internal anti-coronavirus committee. The group has said it looks towards China to recover.
The quarter is ruined
Salvatore Ferragamo communicated its preliminary results for the first quarter of 2020. Consolidated revenue dropped to 220 million euro, -30.6% at current rates and -31.4% at constant rates in comparison to the same period of 2019. “The group – reads a note – had solid sales during the month of January in all markets, while the situation worsened progressively in later months”.
Waiting for the board meeting
Ferragamo delayed its ordinary board meeting to May 8th. The company also decided, as we mentioned, to distribute dividends from 2019’s results and decided to advance a payment proposal for union members. Moreover, it created an executive committee t manage the emergency created by Covid-19.
Le Divelec’s perspective
According to the CEO Micaela Le Divelec Lemmi, China “is the only light in the tunnel”, but still recovering slowly. With regards to the sypply chain front she says “every day and week is a different situation – to MFF -. Now we are trying to understand how we will be able to gradually start working again”. Ferragamo focused activities, from the development of next season’s collection to the prototypes, logistics, ext. in the Osmannoro plant (Florence). “Our goal is to try restart activities gradually so as to not interrupt the flux, which has been stopped for 15 days now and would turn into constant slowdown”. Le Divelec excludes “skipping a season” but sends a clear message to the entire supply chain: it will need to adapt to “work in much shorter timeframes”. More digital in the future? The CEO sees clearly: yes to virtual showrooms with HD imaging and 360-degree views, no to see the whole collection and fitting.