Ferragamo opened the year with -6 percent sales

Madrid – The Italian multinational fashion group Salvatore Ferragamo announced, on April 20, the company’s consolidated results for the first quarter of the current new fiscal year 2023. The three-month period ended on March 31, in which the company came to complete the experience of a noticeable contraction in billing levels, in What its management considers a natural step will be corrected as new initiatives and new proposals in fashion and accessories designed under the guidance of Maximilian Davis, Creative Director of Ferragamo since March 2022, gain more weight and presence within the show of the famous Italian house.

Continuing to analyze the company’s accounts for this first quarter of the new fiscal year 2023, from Ferragamo they represent a quarter during which the company was able to generate total net sales of €271.91 million. A figure representing a contraction of -6% in relation to the 289.48 million euros that the company provided for invoices during the first quarter of 2022, as well as a decrease of -14.22% compared to the 317 million euros that the company managed to achieve. During the first quarter of 2019, the last year that was completed regardless of the effects of the coronavirus pandemic.

And so, it wasn’t until “the end of February” when “the first products designed by our new Creative Director, Maximilian Davis, arrived in our stores”, Marco Gobetti, current CEO of Salvatore Ferragamo and head of this relaunch, began to analyze .. which plunged In it the Italian house after its landing from the executive management of Burberry, by some data we receive from the same direction as Ferragamo. “While these represent a small part of the overall portfolio, they represent a significant step forward in executing our stated strategy to come up with a new offering that matches our customers’ aspirations, and we are pleased with the initial results.”

Decrease in sales across all channels

Going deeper into the behavior experienced by the company throughout the first quarter of the year, through distribution channels, the wholesale channel continued to position itself as the main source of income for the Italian group, generating 68.7 percent of sales of 190.99 million euros (-2.3%). While, for its part, the wholesale channel ended up contributing to the group’s accounts, contributing the remaining 29.1 percent of sales of €80.91 million (-13.9 percent).

In terms of the company’s development, by market, Ferragamo’s sales end up declining in practically all the main areas in which the company operates, except for Europe and an area of ​​South America where they end up having a rebound, in the case of Europe more than pending. As a result, and with the May ranking below billing, it was Asia-Pacific where Ferragamo ended up collecting €90.77 million (-13.6 per cent) in sales, followed by Europe. Its sales amounted to 71.87 million (+24.7%), from the North America region and sales of 67.33 million (-19.8%), with Japan contributing €23.68 million in sales (-7.1%) and from the South and Central America region reaching Sales amounted to 18.24 million euros (+5.4%).

With new collections and marketing strategies as engines of growth

Looking into the remainder of the year, Ferragamo didn’t provide any new updates to its forecasts, considering in that regard limiting ourselves to the words provided by its CEO, from which Gobetti indicates his confidence that sales will rebound as products from Ferragamo’s new collections end up in stores.

“Because the new product launches are still in their infancy, they haven’t contributed significantly to sales performance yet,” and “it won’t be until later in the calendar year that we can begin to fully appreciate the group’s contributions,” says Gobetti. . In parallel, if the first sensations that articles in the new collections evoke are good, we are also “delighted by the positive response and visibility” that our “first marketing efforts” are having. Points that, in short, “as we go into the year”, are expected to be “new marketing activities and a greater proportion of new products” in stores, ultimately “drivers of growth” and “greater efficiency” selling points of the Italian house.

Similarly, while building on these pillars, Gobetti explains, “we continue to invest in our business and make the right critical decisions to streamline and elevate our wholesale channels, just in time for the full range to showcase the full vision and ambition of our business.” There is work to be done, but we are confident in our plans and affirm our objectives for the medium term.”