Italian luxury fashion house Salvatore Ferragamo saw a positive upward trend in sales and profits during the first quarter of 2019. The company reported a 4.3% growth in total revenues, reaching 317 million euros ($355.4 million). This increase was attributed to strong performance in both retail and wholesale channels, as well as significant sales growth in the Chinese market.
In terms of adjusted core profit (EBITDA), Ferragamo reported 34 million euros for the first quarter, compared to 32 million euros in the previous year. Analysts polled by Reuters had predicted sales of 315 million euros and earnings of 34 million euros for the luxury brand.
The retail distribution channel was a key driver of revenue growth for Ferragamo, showing a 3.9% increase. Additionally, wholesale revenues rebounded, with airport shops contributing to a 5.5% growth. The Asia Pacific region emerged as the top market for the brand, experiencing a 7.2% increase in revenues, led by a remarkable 21.2% growth in China. Europe and North America also contributed to the positive results.
Within product categories, Ferragamo saw a notable increase of 7.3% in footwear sales and an 8.7% growth in handbags and leather accessories. Unfortunately, fragrance sales experienced a 24.3% decrease, largely due to timing of product launches.
Following a challenging period, Ferragamo’s new CEO Micaela Le Divelec Lemmi has been focused on revitalizing the brand. Lemmi, who assumed the role in July, has been implementing strategies to attract younger customers through digital initiatives, while still maintaining the brand’s appeal to its loyal clientele. Her background at Gucci, another iconic Italian fashion house, has brought a fresh perspective to Ferragamo.
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