The Italian fashion house Salvatore Ferragamo SpA was able to achieve a significant increase in sales and a high profit in the first quarter of 2022. In addition, the company set itself ambitious goals on Tuesday: With a strategic package of measures that includes higher marketing expenses and investments in its own retail business, supply chains and technological innovations, sales are to be “doubled in the medium term”. One of the plans is to use targeted initiatives to address “new, young customers” more, explained the shoe and leather goods specialist.
In the months from January to March, sales amounted to EUR 289.4 million and were thus 23.2 percent (currency-adjusted +20.6 percent) above the level of the same quarter of the previous year. Strong growth in most market regions contributed to this. In Europe, sales increased by 41.3 percent (currency-adjusted +45.0 percent) to EUR 60.4 million, in North America by 46.1 percent (currency-adjusted +39.8 percent) to EUR 83.0 million and in Central and South America by 52.3 percent (currency-adjusted +42.5 percent) to 17.1 million euros.
Revenues in Japan increased by 17.7 percent (currency-adjusted +20.9 percent) to 25.5 million euros. The Asia-Pacific region underperformed significantly due to the impact of the Covid-19 pandemic on business in China. Sales there, at 103.4 million, were only slightly above the previous year’s level (+0.9 percent). Adjusted for currency effects, it even fell by 2.0 percent.
Thanks to the significant sales growth and a higher proportion of non-discounted products, the company was also able to significantly improve its earnings. Operating profit reached EUR 23.6 million, more than three times higher than in the same period last year, when it was EUR 6.7 million. The bottom line was that the numbers were back in the black: the quarterly surplus attributable to the shareholders was 13.7 million euros, after a corresponding net loss of 1.2 million euros had been posted in the first quarter of 2021.