Ferragamo: “Relaunch goes on”. In the first quarter revenues went down by 1,7% and profits declined by 18,8% though

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Rates of exchange are currently “not advantageous” and, in addition, the various channels “keep having an adverse impact”. These are the main reasons why Ferragamo’s profits and revenues have been declining at the end of 2018 first quarter. The fashion house itself illustrates the situation in their release, while remarking that “for the time being they keep carrying out a set of specific investments aiming at relaunching the brand and optimizing processes”. The new managing director of the group will also drive Ferragamo’s revamp: he will soon be appointed and he will be taken “from a selected group of top quality managers, both in-company and external”. Yet, at present, Ferragamo’s profits have been dropping by 18,8% (that is, 9 million euros), while revenues, which amount to 304 million euros, have been decreasing by 1,7%, at current rates of exchange (though they have increased by the same percentage at fixed rates of exchange). EBITDA went down to 32 million euros (-1,9%), with stable effect on earnings, whereas EBIT is running substantially steady: 17 million euros, that is, +0,3%. As regards the retail business, incomes declined by 3,6%, while homogeneous sales increased by 0,3%. In contrast, the wholesale channel went up by 2,6%. Looking at the markets then, the Asian area expanded by 1,2%: China is going steady, while Hong Kong is speeding up remarkably (+34,1%). In Europe revenues grew by 1,4%, whereas in North America they dropped by 6,1%. However, the group’s management also pointed out their prospective goals to be accomplished: they aim at increasing annual revenues by 2% at fixed rates of exchange.

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