The direct-to-consumer (DTC) channel particularly felt the impact, with a decline in consolidated net sales of 11.1 per cent, or 7.5 per cent at constant exchange rates compared to the same period last year. The wholesale channel faced even steeper declines, with net sales falling 38.3 per cent, or 38.6 per cent at constant exchange rates, largely due to a challenging environment in Europe and difficult comparisons with a strong first quarter in FY23, the company said in a press release.
Geographically, the Europe, Middle East, and Africa (EMEA) region saw a 30.8 per cent decrease in net sales, or 31 per cent at constant exchange rates, against a strong previous year. While the DTC performance in this region showed some resilience with a 3.5 per cent increase at constant exchange rates, the wholesale channel experienced a significant drop of 51.3 per cent at constant exchange rates, influenced by an overall weak market and timing differences in deliveries.
Salvatore Ferragamo reported a Q1 FY24 revenue of €227 million (approximately $244.7 million), down 18.3 per cent year-over-year.
The DTC channel saw an 11.1 per cent drop, while wholesale plummeted by 38.3 per cent.
EMEA, North America, and Asia Pacific regions all faced significant sales declines, impacted by market volatility and weak consumer sentiment.
In North America, net sales were down 10.9 per cent, or 9.2 per cent at constant exchange rates, primarily due to a double-digit decline in wholesale performance.
Central and South America recorded an 8.6 per cent decrease in total net sales, or 11 per cent at constant exchange rates. While DTC performance remained stable compared to the previous year, the wholesale segment saw a significant reduction.
The Asia Pacific region faced a 19.3 per cent decrease in net sales, or 15.5 per cent at constant exchange rates, with Greater China and Korea particularly affected by weak consumer sentiment. Conversely, the rest of the Asia Pacific benefitted from increased travel, leading to positive results. The Japanese market also reported a decline in net sales of 15.7 per cent, or 4.4 per cent at constant exchange rates, despite improvements in the DTC trend during February and March.
“Over recent quarters, we have continued to implement our strategy of a refreshed Ferragamo, a new product offer, a communication model focused on creating awareness for the renewed brand, a redesigned and more efficient customer experience through CRM optimisation and a new store concept,” said Marco Gobbetti, chief executive officer.
Fibre2Fashion News Desk (DP)