Salvatore Ferragamo swings to profit in the nine month period

As of September 30, 2021, the Salvatore Ferragamo Group reported total revenues of 785 million euros, up 33.9 percent at current exchange rates and 35.3 percent at constant exchange rates. Revenues in the third quarter registered a 17.1 percent increase at current exchange rates and 17.4 percent at constant exchange rates.

The pre-tax profit in 9M 2021 was positive for 69 million euros against 95 million euros negative in 9M 2020, while net profit for the period was positive for 40 million euros compared to 96 million euros negative in 9M 2020. Group net profit was positive for 38 million euros against 96 million euros negative in 9M 2020.

Salvatore Ferragamo’s performance across retail channels

The group’s retail network counted on a total of 643 points of sales, including 404 directly operated stores (DOS) and 239 third party operated stores (TPOS) in the wholesale and travel retail channel, as well as the presence in department stores and high-level multi-brand specialty stores.

In 9M 2021 the retail distribution channel posted consolidated revenues up 37.2 percent or 38.4 percent at constant exchange rates, while in 3Q 2021 retail revenues increased by 21.8 percent or 20.2 percent, with four areas including Greater China, North America, Latin America and Korea exceeding the pre-Covid Revenues level.

The direct ecommerce channel revenues were up 53.7 percent or 58.2 percent at constant exchange rates against 9M 2020. In 3Q 2021 the direct ecommerce increased by 24.2 percent at constant exchange rates.

The wholesale channel registered an increase in revenues of 27.1 percent or 28.9 percent at constant exchange rates compared to 9M 2020. In the third quarter, wholesale revenues were up 6.3 percent or 10.9 percent at constant exchange rates.

Revenues in the Asia Pacific area were up by 22.7 percent or 22.1 percent at constant exchange rates. In 9M 2021 the retail channel in Greater China posted a revenue growth of 22.6 percent. In particular, the retail channel in China posted an increase in revenues of 22.1 percent at constant exchange rates and Korea also posted a 16.1 percent rise against 9M 2020. The Japanese market registered a 4.9 percent or 8.5 percent increase in revenues at constant exchange rates in 9M 2021, with a negative trend in 3Q 2021, down 8.6 percent at current exchange rates and down 6.4 percent at constant exchange rates.

EMEA posted an increase in revenues of 16.8 percent or 14.9 percent at constant exchange rates compared to 9M 2020, with 3Q 2021 positive at up 6.1 percent at constant exchange rates. North America recorded a revenue increase of 85.1 percent or 97.1 percent at constant exchange rates in 9M 2021. In 3Q 2021 revenues increased by 65.7 percent at constant exchange rates. Revenues in the Central and South America in 9M 2021 were up 59.3 percent or 63.2 percent at constant exchange rates, while in the third quarter revenues increased by 47.5 percent at constant exchange rates.

Highlights of Salvatore Ferragamo’s financial performance

Shoes and leather categories represented respectively 43 percent and 44 percent of the turnover in the first nine months.

In 9M 2021 the gross profit increased by 47.9 percent to 532 million euros. Its incidence on revenues was up 640 basis points, moving to 67.7 percent from 61.3 percent of 9M 2020.

The gross operating profit (EBITDA) amounted to 202 million euros, from 78 million euros of 9M 2020, with an incidence on revenues of 25.7 percent from 13.3 percent in 9M 2020. Operating profit (EBIT) was positive at 84 million euros.