Salvatore Ferragamo, an Italian luxury goods company, has reported revenues of €523 million (approximately $566 million) in the first half of fiscal 2024 (H1 FY24), marking a 12.8 per cent decrease from €600 million. At constant exchange rates, the decline was 10.9 per cent.
Salvatore Ferragamo reported H1 FY24 revenues of €523 million (~$566 million), a 12.8 per cent decrease from H1 FY23.
DTC revenues were €382 million, down 8.1 per cent, while wholesale revenues fell 23.1 per cent to €128 million.
The company’s operating profit dropped 41 per cent to €28 million, and net profit decreased 73.2 per cent to €6 million.
Revenues in the direct-to-consumer (DTC) channel were €382 million, down 8.1 per cent from €415 million, and down 5.5 per cent at constant exchange rates. Revenues from the wholesale channel stood at €128 million, a significant 23.1 per cent decrease from €167 million in H1 FY23, and down 24.8 per cent at constant exchange rates. Despite the revenue decline, the company’s gross margin remained stable at 72.1 per cent of revenues, the company said in a press release.
Operating profit for H1 FY24 was €28 million, representing a 41.0 per cent drop from €47 million in H1 FY23. Gross operating profit decreased by 12.3 per cent to €117 million, compared to €134 million in H1 FY23. Net profit for H1 FY24 was €6 million, a substantial 73.2 per cent decline from €21 million in H1 FY23.
In terms of regional sales performance, net sales in the Europe, the Middle East and Africa (EMEA) region decreased by 16.3 per cent at constant exchange rates and 16.1 per cent at current exchange rates. The DTC channel in this region saw a 4.6 per cent increase at constant exchange rates, while wholesale sales dropped by 32.8 per cent at constant exchange rates, partly due to a strong comparison base from the previous year in Q1.
Net sales in North America decreased by 5.7 per cent at constant exchange rates and 5.5 per cent at current exchange rates. In Central and South America, net sales fell by 8.4 per cent at constant exchange rates and 6.9 per cent at current exchange rates. The Asia Pacific region saw net sales decline by 15.1 per cent at constant exchange rates and 17.0 per cent at current exchange rates. In Japan, net sales increased by 2.6 per cent at constant exchange rates but decreased by 9 per cent at current exchange rates.
In the second quarter of fiscal 2024 (Q2 FY24), Salvatore Ferragamo’s revenues were €296 million, down 6.0 per cent at constant exchange rates and 8.1 per cent at current exchange rates compared to Q2 FY23. The DTC channel generated €212 million in revenues, a 3.8 per cent decline at constant exchange rates and a 5.5 per cent decrease at current exchange rates. Wholesale revenues in Q2 FY24 were €78 million, down 12.1 per cent at constant exchange rates and 8.7 per cent at current exchange rates.
“The second quarter showed again some of the encouraging underlying operating trends that we started to see earlier in the year. Retail primary full-price sales showed a positive trend in the US, Europe, Japan and Latin America; our refreshed shoes and handbags offerings have been attracting new, younger customers, contributing to shift a higher proportion of purchases to younger demographics,” said Marco Gobbetti, chief executive officer and general manager.
Fibre2Fashion News Desk (DP)