Salvatore Ferragamo, the renowned Italian luxury house, is experiencing a remarkable period of rejuvenation as its sales and profits continue to soar, defying the challenges posed by a slowdown in the Chinese market. The company’s net profit has impressively increased by over 85%, showcasing its strong performance. In the first half of 2022, the brand achieved a sales growth of 17% at constant rates, amounting to 630 million euros, outperforming the same period last year. These exceptional figures have surpassed industry experts’ predictions, with the operating profit exceeding expectations at 95 million euros, representing a substantial 44% increase. The net profit, reaching 62 million euros, showcases an exceptional 85.2% surge when compared to the first half of 2021.
Despite its extraordinary success, Salvatore Ferragamo did face a decline in sales by 7.8% in its vital geographic market, the Asia Pacific (excluding Japan). This decline can be primarily attributed to the consumption slowdown in China during the second quarter, which was significantly impacted by the resurgence of the Covid-19 pandemic. While the Asia Pacific region now accounts for 34.4% of the brand’s sales, a decrease from 42.9% last year, North America and Europe have seized the opportunity to gain market share and now represent 29.7% and 21.5% of sales, respectively.
In response to these market conditions, Salvatore Ferragamo has devised a strategic plan to invest in retail and digital to fortify its platforms and regions, thereby supporting its growth program despite the current macroeconomic volatility and challenges. Marco Gobbetti, the CEO of Salvatore Ferragamo, who assumed the role at the beginning of this year after leading Burberry, emphasized the brand’s progress and future plans. Gobbetti announced a speedy implementation of an investment policy that prioritizes enhancing the brand’s online presence, a vision recently actualized through a partnership with the renowned e-commerce platform, Farfetch. In its bid to attract new generations of consumers, Salvatore Ferragamo is diligently expanding and modernizing its physical retail network. A notable endeavor in this regard is the recent opening of a concept store featuring a unique service dedicated to co-designing NFTs (non-fungible tokens).
With ambitious goals in sight, Salvatore Ferragamo aims to achieve a remarkable revenue of 2.3 billion euros by 2026, which is double its performance in 2021. The brand remains unwavering in its determination to continue its upward growth trajectory and adapt to the ever-evolving landscape of the luxury industry.
Useful Links:
– Salvatore Ferragamo Eyes €2.3 Billion Revenue by 2026
– Official Salvatore Ferragamo Website
