Salvatore Ferragamo, an Italian luxury goods company, has reported revenue of €523 million (approximately $566 million) for the first half of fiscal year 2024 (H1 FY24), down 12.8% from €600 million reported previously. At constant exchange rates, the decline was 10.9%.
Salvatore Ferragamo reported that its revenue for the first half of fiscal year 2024 amounted to 523 million euros (about 566 million dollars), down 12.8 percent from the first half of fiscal year 2023. Revenue from direct-to-consumer sales was 382 million euros, down 8.1 percent, while revenue from wholesale sales fell 23.1 percent to 128 million euros. The company's operating profit fell 41 percent to 28 million euros, and net profit decreased 73.2 percent to 6 million euros.
Direct-to-consumer (DTC) channel revenue was €382 million, down 8.1% from €415 million in the first half of fiscal 2023 and down 5.5% at constant exchange rates. Wholesale channel revenue was €128 million, down 23.1% from €167 million in the first half of fiscal 2023 and down 24.8% at constant exchange rates. Despite the decline in revenue, the company's gross margin remained stable at 72.1% of revenue, the company said in a press release.
Operating profit for the first half of fiscal year 2024 was €28 million, a decrease of 41.0 percent compared with €47 million in the first half of fiscal year 2023. Gross operating profit decreased by 12.3 percent to €117 million, compared with €134 million in the first half of fiscal year 2023. Net profit for the first half of fiscal year 2024 was €6 million, a substantial decrease of 73.2 percent compared with €21 million in the first half of fiscal year 2023.
In terms of regional sales performance, net sales in the Europe, Middle East and Africa (EMEA) region decreased by 16.3 percent at constant exchange rates and 16.1 percent at current exchange rates. The DTC channel in this region experienced an increase of 4.6 percent at constant exchange rates, while wholesale sales fell by 32.8 percent at constant exchange rates, partly due to a strong comparison base of the Last year in the first trimester.
Net sales in North America decreased 5.7% at constant exchange rates and 5.5% at current exchange rates. In Central and South America, net sales decreased 8.4% at constant exchange rates and 6.9% at current exchange rates. In the Asia Pacific region, net sales decreased 15.1% at constant exchange rates and 17.0% at current exchange rates. In Japan, net sales increased 2.6% at constant exchange rates but decreased 9% at current exchange rates.
In the second quarter of fiscal year 2024 (Q2 FY24), Salvatore Ferragamo’s revenues were €296 million, down 6.0 percent at constant exchange rates and down 8.1 percent at current exchange rates compared to the second quarter of fiscal year 2023. The DTC channel generated €212 million in revenues, down 3.8 percent at constant exchange rates and down 5.5 percent at current exchange rates. Wholesale revenues in the second quarter of fiscal year 2024 were €78 million, down 12.1 percent at constant exchange rates and down 8.7 percent at current exchange rates.
“The second quarter again showed some of the encouraging underlying operating trends we began to see earlier in the year. Full-price primary retail sales trended positively in the U.S., Europe, Japan and Latin America; our refreshed shoe and handbag offerings have been attracting new, younger customers, helping to shift a greater proportion of purchases to younger demographics,” he said. Marco Gobbetti, CEO and Managing Director.
Fibre2Fashion (DP) Press Desk
