Florence-based Italian luxury fashion house Salvatore Ferragamo SpA announced the group’s preliminary consolidated sales figures for the full year 2023. These amount to 1.16 billion euros, which corresponds to a decrease of 7.6 percent at current exchange rates and 8.1 percent at constant exchange rates compared to the 2022 financial year. Last year the company was able to report a sales increase of 10.2 percent.
Wholesale, in particular, recorded a 12.1 percent decline in net sales compared to 2022, which was due to the planned channel rationalization, the company said. In the retail sales channel, Ferragamo generated consolidated net sales of 10.8 percent, a decrease of 7.7 percent at constant exchange rates. The reason for this development was also a general market weakening in the last few months of the year, which primarily resulted in the sale of discounted products.
Decline in almost all regions
Comparing the development in the individual regions, business only went well in EMEA, where Ferragamo achieved a sales increase of 3.3 percent, despite a reduction in market size in both channels. In the fourth quarter of 2023, net sales even rose by 4.8 percent compared to the fourth quarter of 2022.
However, all other regions recorded declines in sales: Asia-Pacific (minus 13.1 percent), Japan (minus 12.6 percent), North America (minus 19.2 percent) and Central and South America (minus 7.1 percent).
Marco Gobbetti, Chief Executive Officer and General Manager, said: “2023 has been a year of intense work in which we have made significant progress in our transition.” This includes gradually increasing the proportion of new products in stores, greater engagement in social media and communication. In addition, the new store concept in the Milan Women Store will be presented in February. “We recognize the work ahead and remain confident that our strategy will unlock Ferragamo’s potential. The complex market environment with the slowdown in demand for luxury goods may impact the timing of our original assumptions, however our commitment to our ambitions remains unchanged,” continued Gobbetti.
A new chief financial officer will therefore start in March. Pierre La Tour will take over the role of Chief Financial Officer of the group on March 18, Ferragamo announced a few days ago. In addition to heading the administration, finance, control and investor relations departments, he was also appointed manager with strategic tasks by the board of directors.