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Ferragamo FY17 revenues drop 3.1 percent

By Prachi Singh

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Business

The Salvatore Ferragamo Group, in its preliminary results statement for fiscal year 2017 said that total consolidated revenue amounted to 1,393 million euros (1,728.9 million dollars), down 3.1 percent at current exchange and 1.4 percent at constant exchange rates against FY16. Revenues in the fourth quarter, the company said, registered a decrease of 8.4 percent or 5.1 percent at constant exchange, penalized by the currencies trend and by the lower incidence of promotional sales in the primary channel against last year.

As of December 31, 2017, the group's retail network consisted of 685 points of sales, including 410 directly operated stores (DOS) and 275 third party operated stores (TPOS) in the wholesale and travel retail channel, as well as the presence in department stores and multi-brand specialty stores. In FY17 the retail distribution channel posted 0.8 percent decline in consolidated revenues but revenues rose 1.3 percent at constant exchange rates, with a decrease of 1.7 percent at constant exchange rates and like-for-like sales. The wholesale channel, the company added, penalized by the destocking activity, the political tensions in South Korea and the strategic rationalization in Japan, registered a decrease in revenues of 7.4 percent at current exchange and 6.2 percent at constant exchange rates.

Geographical review of Ferragamo’s results

The company said, Asia Pacific area is confirmed as the group's top market in terms of revenues, decreasing by 2.1 percent or 0.4 percent at constant exchange rates, penalized by the soft trend in South Korea, mostly due to the significant decrease of Chinese tourists, and the on-going negative performance in Hong Kong. However the retail channel in China reported a 2.5 percent or 7 percent revenue growth in FY17.

Revenues in Europe decreased 3.6 percent or 3 percent at constant exchange rates, with a positive performance for the retail channel and a negative trend for the wholesale business, negatively impacted by the destocking activity. North America recorded a revenue decrease of 4.2 percent or 2.2 percent at constant exchange rates, also negatively impacted by the department stores sales. The Japanese market registered a 5.6 percent or 3.1 percent decrease at constant exchange rates, due to rationalization of the wholesale channel, while the retail stores recorded a positive performance at constant exchange rates. Revenues in the Central and South America grew by 2 percent or 6.5 percent at constant exchange rates.

Among the product categories, at constant exchange rates, footwear posted a decrease of 1.7 percent and handbags and leather accessories of 0.8 percent, while fragrances registered a 2.2 percent increase.

Picture:Facebook/Salvatore Ferragamo

Salvatore Ferragamo