Ferragamo shares fall after third-quarter sales slip on wholesale cuts and weak Asia
Salvatore Ferragamo reported third-quarter revenue of €207 million, down 3.5% at constant exchange rates, as a sharp drop in wholesale and soft demand in Asia offset growth in North America and Europe. Its shares fell about 5.5% in Milan.
Italian luxury house Salvatore Ferragamo said on Tuesday evening, 20 October, that third-quarter revenue fell to €207 million, down 3.5% at constant exchange rates (about 6% at current rates), Reuters and the company’s release showed. Shares fell around 5.5% in Milan on Wednesday, Investing.com reported.
Wholesale drags, shops hold up
Wholesale sales fell 19.1% in the quarter, which the company linked to more selective distribution. Sales in its own stores and online were roughly flat, with growth in North America and Europe offset by weakness in Asia, particularly China. For the first nine months, revenue was €675 million, compared with €695 million a year earlier, broadly stable at constant currency.
Cautious on Christmas
On the analyst call, executive board member Ernesto Greco said the third-quarter slowdown across the sector was driven both by temporary factors and by others that may last longer. He said October so far was slightly weaker than a year earlier but better than September, and that it was hard to say whether analysts’ revenue forecasts can be met, since much depends on Christmas sales, according to Investing.com.
Ferragamo is in the middle of a turnaround focused on full-price retail and a leaner wholesale network.
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