Covid-19 eats up 33% of Salvatore Ferragamo’s revenue. The luxury brand, which in the last two weeks was cited in some rumors, has highlighted the strong recovery of sales in China. In fact, physical stores in Beijing and other cities, during the 4th quarter, increased sales by 33.9% at constant rates, brining the yearly performance to +11.3%, compared to the year 2019. Online sales also showed strong results.
Covid-19 eats up 33% of revenue
Salvatore Ferragamo closed 2020 with ìa revenue of 916 million euro, down 33.5% at current rates and 33.4% at constant rates. During the 4th quarter revenue dropped in line with expectations to -20.4$ at current rates and -19.9% at constant rates, yet improving from the previous 9 months. The Asia-Pacific region confirms its place as number 1 market for the brand (worth over 50% of revenue), but lost 25% compared to 2019 (-11.2% in the last quarter).
All categories down
All product categories contracted. Footwear and leather goods (both worth over 40% of revenue), lost 35% and 27.9%, respectively, at constant rates. Beside from China’s recovery, online sales’ results also shine a light for the brand, with an increase of 61.1% at constant rates.
The brand has been at the center of certain indiscretions in the last few weeks. First because of the exit of Michael Norsa, the executive Vicepresident, and then due to that of CEO Micaela Le Divelec. Additionally, there was also a rumor that Paul Andrew, creative director, could be leaving the brand. Last but not least, some claimed that the Ferragamo family was considering a sale of the brand, but these rumors were quashed.
Images taken from ferragamo.com