Italian luxury goods group Salvatore Ferragamo has reported a positive start to the year 2023, despite a smaller-than-expected drop in operating profit for the previous year. The company experienced a 10.8% decrease in operating profit in 2022, largely due to higher costs associated with its efforts to relaunch the brand. Despite this setback, Ferragamo remains optimistic about its performance, citing promising early results of its spring-summer 2023 collection and the success of its fall-winter 2023 fashion show.
One of the key factors contributing to the decrease in operating profit was a 21.3% increase in operating costs, driven primarily by higher marketing and communication expenditure. However, despite these challenges, Ferragamo reported a 5.7% rise in full-year sales in January, at constant exchange rates.
CEO Marco Gobbetti expressed his confidence in the company’s performance and highlighted the success of sales in mainland China. Gobbetti, who joined Ferragamo from Burberry in 2022, has ambitious plans to revamp stores, attract younger customers, and increase investments in order to double revenues to 2.3 billion euros by 2026.
The Covid-19 pandemic has presented challenges for Ferragamo, hindering its efforts to rejuvenate its historic brand. However, the company remains determined to overcome these obstacles and capitalize on growth opportunities. Despite the decrease in operating profit, Ferragamo has proposed a dividend payment of 0.28 euros per share, showing its commitment to returning value to shareholders.
As Ferragamo continues on its journey towards brand revitalization, the company remains focused on delivering high-quality luxury goods and expanding its customer base. With a positive start to 2023 and ambitious growth plans in place, Ferragamo aims to reclaim its position as a leading player in the luxury fashion industry.
Useful Links:
– Salvatore Ferragamo Official Website: Explore more about the luxury products offered by Ferragamo.
– Business of Fashion: Stay up-to-date with the latest news and insights in the fashion industry.
