Italian luxury brand Salvatore Ferragamo has announced that its retail sales in July and August have reached levels similar to those prior to the Covid-19 pandemic. This encouraging news follows the company’s return to operating profit in the first half of 2021, after suffering losses caused by the global health crisis in the previous year.
During the months of July and August, Ferragamo experienced significant revenue growth in its directly-operated stores located in key markets such as the United States, China, South Korea, and Latin America, when compared to the same period in 2019. However, the company has refrained from providing an estimate for its full-year sales.
The impact of the Covid-19 crisis hit Ferragamo particularly hard due to its heavy reliance on travel spending. However, the luxury brand is hopeful that the appointment of former Burberry Chief Executive Marco Gobbetti as its new CEO will bolster its turnaround efforts. Current CEO Micaela le Divelec Lemmi will step down from her position, and Executive Vice Chairman Michele Norsa will assume all powers of ordinary administration until Gobbetti assumes his new role.
In the first half of 2021, Ferragamo’s operating profit increased to €66 million ($78.19 million), a significant improvement compared to the loss of €72 million suffered in the same period the previous year. Additionally, the company reported a 46.2% surge in sales at constant exchange rates, totaling €524 million, over the first six months.
This resilient performance by Ferragamo in the retail sector, despite the ongoing challenges posed by the pandemic, signifies a positive outlook for the luxury brand. With the appointment of a new CEO and a strategic focus on key markets, Ferragamo aims to continue its recovery trajectory and reclaim its pre-pandemic sales levels.
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