The Italian fashion group Salvatore Ferragamo SpA had to pay tribute to the adverse conditions in the 2023 financial year. On Wednesday, the shoe and leather goods specialist reported significant losses in sales and earnings.
As a reason, he cited the general weakening demand for luxury goods in important markets. However, the company has made “good progress” in implementing its strategic reforms, emphasized CEO Marco Gobbetti in a statement.
In America and Asia, Salvatore Ferragamo is suffering significant losses in sales
Last year, sales amounted to almost 1.16 billion euros. This corresponded to a decline of 7.6 percent (-8.1 percent adjusted for currency effects) compared to 2022. The company was only able to increase in Europe. Sales there grew by 3.4 percent (currency-adjusted +3.4 percent) to 270.6 million euros.
In the other market regions, however, there was a downward trend. In North America, revenue shrank by 19.3 percent (-17.0 percent adjusted for currency effects) to 315.9 million euros, while in Central and South America they fell by 7.2 percent (-11.5 percent adjusted for currency effects) to 83.4 million Euro. In Jaqpan, sales were 86.6 million euros, 12.6 percent (currency-adjusted -3.7 percent) below the previous year’s level; in the other markets in the Asia-Pacific region they fell by 13.1 percent (currency-adjusted -8 .3 percent) to 363.0 million euros.
In addition to the loss in sales, significantly increased marketing expenses contributed to the operating profit slipping by 43.7 percent to 72.0 million euros. The net profit attributable to shareholders fell by 62.6 percent to 26.1 million euros.