Ferragamo revenues rise with strong growth in Asia

REPORT_ Salvatore Ferragamo for the nine months ending September 30, 2014, posted total revenues of 957 million euros (1,191 million dollars), with a 5 percent increase at current exchange rates, over the 915 million euros (1,138 million dollars) recorded at the nine months end in 2013. Revenues growth at constant exchange rates has been 6 percent.

In the third quarter, the total revenues grew 3 percent, both at current and constant exchange rates, from 290 million euros (360.7 million dollars) to 298 million euros (370.7 million dollars).

The Asia Pacific area is confirmed as the group's top market in terms of revenues, further increasing by 5 percent at the end of nine months and by 3 percent in the third quarter. A major contribution came, once more, from the retail channel in China that recorded a revenue growth 16 percent in the first nine months of the year. Europe posted an increase in revenues of 7 percent in nine months 2014 and 3 percent in the third quarter. North America recorded a revenue increase of 7 percent in the first nine months of 2014 and of 5 percent in third quarter.

The Japanese market increased 3 percent in nine months. Revenues in the Central and South America marked an increase of 12 percent in nine months of 2014, with an decrease of 7 percent in the third quarter.

As of September 30, 2014, the group's retail network had 362 Directly Operated Stores (DOS), while the wholesale and travel retail channel included 275 third party operated stores (TPOS), as well as presence in department stores and high-level multi-brand specialty stores. At the end of nine months, the retail distribution channel posted consolidated revenues up by 4 percent and over 2 percent in the third quarter. The wholesale and travel retail channel marked a 10 percent increase in nine months of 2014 and 4 percent increase in the third quarter.

Among the product categories, handbags and leather accessories saw over 13 percent rise and of footwear, over 5 percent, which together represent over 78 percent of the group’s total turnover. In nine months the gross profit increased by 4 percent, with a stable incidence on revenues of 63.1 percent. In the third quarter, the gross profit incidence on revenues moved from 63.6 percent of third quarter 2013 to 63.7 percent. The gross operating profit (EBITDA) increased 6 percent, with an incidence on revenues of 21.2 percent from 21 percent of nine months in 2013. In the third quarter, the EBITDA was stable.