Salvatore Ferragamo: Revenues for nine month period decline 3.3 percent

As of September 30, 2018, Salvatore Ferragamo S.p.A. reported total revenues of 972 million euros (1,103 million dollars), down 3.3 percent at current exchange and 1.6 percent at constant exchange rates. In the third quarter, the company’s total revenues reached 298 million euros (338 million dollars), up 3.9 percent at current exchange and 2.5 percent at constant exchange rates. The profit before taxes in nine months amounted to 91 million euros (103 million dollars), down 14.1 percent and net profit for the period, including the minority interest, was 65 million euros (73.7 million dollars), down 17.5 percent. Group net profit of 64 million euros (72.6 million dollars), declined 22.1 percent.

Gross profit for nine month period decreased by 4.2 percent to 618 million euros (701 million dollars), down 60 basis points, moving to 63.6 percent. In the third quarter, profit was up 5.1 percent, with an incidence on Revenues of 62.4 percent, up 80 basis points. EBITDA decreased by 7.9 percent over the period, to 149 million euros (169 million dollars), with an incidence on Revenues of 15.3 percent, while in the third quarter, EBITDA increased 27.4 percent to 32 million euros (36 million dollars), with an incidence on revenues of 10.9 percent, up 200 bps. EBIT was down 11.4 percent with an incidence on revenues of 10.5 percent from 11.5 percent.

Highlights of Salvatore Ferragamo’s trading performance

In the nine-month period, the company said in a statement, retail distribution channel posted consolidated revenues down 3.2 percent or 1.5 percent at constant exchange, showing a decline of 1.5 percent at constant exchange rates and like-for-like sales affected by lower end-of-season sales. In the third quarter, retail revenues were up 1.4 percent and stable at constant exchange rates, with a 0.9 percent decline at constant exchange and on like-for-like basis.

The wholesale channel, registered a decrease in revenues of 3.1percent at current exchange and 1.6 percent at constant exchange in the nine months. In 3Q, wholesale revenues were up 10.8 percent or 9.1 percent at constant exchange due to shifted deliveries from 2Q to 3Q 2018.

By geographies, the revenues in Asia Pacific area decreased by 1.9 percent but were stable at constant exchange in the nine month period. The retail channel in China, after a very strong growth of 15.5 percent at constant exchange in 9M 2017 recorded a 1 percent revenue performance in 9M 2018 at constant exchange rates.

Europe posted a decrease in revenues of 5.5 percent or 5.2 percent at constant exchange rates. Revenues in North America decreased 4 or 1.2 percent, while the Japanese market registered a decrease of 0.4 percent or 1.7 percent at constant exchange in 9M 2018, mainly due to the strategic rationalization of the wholesale channel in 1H 2018, while the retail channel registered a positive trend. Revenues in the Central and South America were down 3.6 percent but up 3.3 percent at constant exchange rates.

Among the product categories, at constant exchange rates, footwear posted a 4.3 percent, while handbags and leather accessories showed an increase of 3.4 percent and fragrances were up 4.2 percent.

The Group's retail network consisted of 679 points of sales, including 407 directly operated stores (DOS) and 272 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 at September 30, 2018.

Picture:Facebook/Salvatore Ferragamo