Salvatore Ferragamo faces a 3.4 per cent revenue dip

In a recent preliminary results statement, it is reported that Salvatore Ferragamo’s revenues dropped 3.4 percent for the 2018 fiscal.

The Salvatore Ferragamo Group revealed that consolidated revenues amounted to 1,347 million euros (1,541 million dollars), down 3.4 percent at current exchange and 1.7 percent at constant exchange rates.

Additionally, the company revealed that revenues in the fourth quarter, declined by 3.6 percent, penalized by the currencies trend, while the decline was observed to be 1.8 percent at constant exchange rates, driven by the lower incidence of promotional sales in the primary channel, by lower revenues in the secondary channel and by the negative trends of the wholesale business.

On the retail front, the group reported a decline in both retail and wholesale revenues. On 31^st December, 2018, the group counted a total of 672 points of sales, including 409 directly operated stores (DOS) and 263 third party operated stores (TPOS) in the wholesale and travel and retail channel, as well as department stores and multi-brand specialty stores.

The retail distribution channel, in FY 2018, posted a consolidated revenue decline of 3 percent or 1.1 percent at constant exchange rates, with a decrease of 1.4 percent at constant exchange rates and like-for-like sales. In the fourth quarter, retail revenues remained stable at constant exchange rates, with a negative 1.2 percent total like-for-like performance, but positive in the primary channel in all geographical areas.

Italian luxury goods company, Salvatore Ferragamo SpA revealed that, in the wholesale channel, a decrease in revenues of 3.8 percent or 2.7 percent at constant exchange rates was registered due to the penalizing effects borne during 2018 by destocking activity and the strategic rationalization.

Fourth quarter wholesale revenues dipped 5.4 percent at constant exchange rates due to the unfavourable performances in EMEA and US, while the Asia Pacific area and the travel retail channel registered positive trends.