2019 brings back the positive sign to Salvatore Ferragamo’s sales. The luxury brand hadn’t had a positive year since 2015. The result is particularly significant because obtained even with the deeply negative drop of Hong Kong’s sales (-45% in the third quarter and -50% in the fourth). Ferragamo seems to once again see the light: finally.
Salvatore Ferragamo’s revenue in 2019 were of 1.377 billion euro, up by 2.3% at current rates and 1.3% at constant rates. The result is in line with both the company’s expectations and those of Refinitiv (Reuters) which expected 1.376 billion. The increment signifies the first yearly growth, at constant rates, since 2015, and is “proof of the progress that the re-launching plan, started by the CEO Micaela Le Divelec, 1 and a half year ago.
40% from footwear
At constant rates, footwear sales accounted for 576 million, equal to 40% (circa) of total revenue, grew by 3%. Leather goods (541 million) increased their performance by 2.8%. Considering markets at a geographical level, the Asia-Pacific area is still the top market for Ferragamo, growing by 1.1% (0.7% at constant rates) in comparison to 2018. Specifically in China, brand stores sold 13.8% more (value wise), while the growth at constant rates was of +12.6%. This outstanding performance more than covered Hong Kong’s deep dive. Sales in the ex-British colony lost 45% during the third quarter and 50% in the fourth quarter of 2019 (at constant rates)
Image from ferragamo.com