Ferragamo sales down 9% in first nine months

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Reuters API

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Oct 19, 2023

Sales at Italian luxury goods group Salvatore Ferragamo fell by 9.2% at constant exchange rates in the first nine months of the year, in line with market expectations, hit by weak demand in Asia and North America.

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Revenue in the period totalled 844 million euros ($892.53 million), down from 920.7 million euros a year earlier, the leather goods company said on Thursday.

Analysts had expected sales of 845 million euros on average, according to a Refinitiv consensus.

Luxury groups have come under pressure amid a slowdown in China and uncertainty over rising interest rates in Europe and the United States. Jitters over the latest crisis in the Middle East are adding to concerns about the tail end of the year.

“Whilst the wider market environment is increasingly uncertain, our mid-term ambition is confirmed”, said Chief Executive Marco Gobbetti, who joined Ferragamo from Burberry at the start of 2022 to relaunch the brand made famous by Hollywood stars such as Audrey Hepburn.

Gobbetti said he was pleased by the early results of products designed by creative director Maximilian Davis, who joined the group shortly after the CEO.

The “full potential” of the new creative course will be evident in 2024, he added.

Asia-Pacific sales declined by 11.7% at constant currencies in the nine months, while in North America they decreased by 18.2%. Europe and Middle East posted an increase in sales of 3%.

© Thomson Reuters 2023 All rights reserved.

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