“Being independent gives you pride and flexibility”, said Michele Norsa (in picture on the right from Imagoeconomica), vice-president of Salvatore Ferragamo during the conference call with analysts that was held yesterday. The topic: the financial results of the first quarter of 2021 for the Italian brand. Footwear and leather goods remain the company’s focus, which doesn’t exclude the possibility of nominating a new creative director. Mr. Norsa also explained how Ferragamo wants to grow, because it foresees a positive future ahead.
Pride and flexibility
“It’s clear that large groups benefitted from their organization, financial strength and global presence, during the pandemic – he continues, according to WWD -. But at a time like this a single brand of medium dimensions can take advantage from a re-organization”. The reason? “Within a very fragmented women’s shoes marketplace, populated by companies that are disappearing or losing market share, I believe there is still interest towards Ferragamo’s uniqueness. The return of tourists to Italy will give us now opportunities in the short-term and we will be able to regain the position we held in the past”.
Micaela Le Divelec Lemmi, CEO of the brand, pointed out that footwear and leather goods (together accounting for 85% of total revenue) remain a focus point for Ferragamo, together with the China area, as these provided great contributions to 2021’s first quarter results. In fact, at constant rates, footwear sales increased by 11.9% compared to the first 3 months of 2020, leather goods’ increased by 19.6% and the Asia-Pacific region grew its sales by 51.7%. Total revenue was of 245 million euro, or +10.3% at current rates and +13% at constant rates. EBIT increased to 7 million euro, compared to the negative 36 million of 1 year ago.
The creative matter
Le Divelec Lemmi confirmed that an internal creative team is working on the next collection, which will be ready in September. That being said, she admitted that Ferragamo “is thinking about the next steps, but they will be communicated when we are ready”. The luxury brand could be thinking of finally nominating a successor to Paul Andrew to take over creative leadership. Even though she confirmed nothing, the CEO did admit that the 2nd quarter is “accelerating, compared to the 1st quarter of 2021 and to 2019”, and that the recovery of travel retail will be of paramount importance, especially in Europe. “We want to grow our top line in a clear way and not by pumping it with sales and promotions”.
- Ferragamo wants to protect its chain, OTB wants to buy it
- All the chapters of the Ferragamo company shakeup