The Italian fashion house Salvatore Ferragamo SpA had to accept a decline in sales in the first quarter of the 2023 financial year. The reasons for this included weak demand in the USA and in travel retail in Asia and the targeted streamlining of the wholesale business, the shoe and leather goods specialist explained in a statement published on Thursday.
Overall, sales in the period from January to March amounted to 278.0 million euros. It thus shrank by 4.0 percent compared to the same quarter of the previous year. Adjusted for exchange rate changes, revenues fell by 6.5 percent. In own retail sales fell by 2.3 percent (currency-adjusted -2.4 percent) to 191.0 million euros, in wholesale by 13.9 percent (currency-adjusted -16.1 percent) to 80.9 million US dollars.
Things went up in Europe, where sales increased by 24.7 percent (currency-adjusted +25.0 percent) to 71.9 million euros. Things were not looking so good in the other important market regions. In North America, sales shrank by 19.8 percent (currency-adjusted -23.4 percent) to 67.3 million euros, in Japan by 7.1 percent (currency-adjusted +1.2 percent) to 23.7 million euros and in the rest of Asia -Pacific region by 13.6 percent (currency-adjusted -13.0 percent) to 90.8 million euros. In Central and South America, revenues grew by 5.4 percent to EUR 18.2 million, although adjusted for currency effects they fell by 5.7 percent.