The direct-to-consumer (DTC) channel particularly felt the impact, with a decline in consolidated net sales of 11.1 percent, or 7.5 percent at constant exchange rates compared to the same period last year. The wholesale channel faced even steeper declines, with net sales falling 38.3 percent, or 38.6 percent at constant exchange rates, largely due to a challenging environment in Europe and difficult comparisons with a strong first quarter in FY23, the company said in a press release. release.
Geographically, the Europe, Middle East and Africa (EMEA) region saw a 30.8 percent decline in net sales, or 31 percent at constant exchange rates, compared to a strong prior year. While DTC performance in this region showed some resilience with an increase of 3.5 percent at constant exchange rates, the wholesale channel saw a significant drop of 51.3 percent at constant exchange rates, influenced by a market weak in general and differences in delivery times.
Salvatore Ferragamo reported first-quarter FY24 revenue of 227 million euros (approximately $244.7 million), a year-on-year decline of 18.3 percent. The DTC channel saw an 11.1 percent drop, while the wholesale channel plunged 38.3 percent. The EMEA, North America and Asia Pacific regions faced significant sales declines, impacted by market volatility and weak consumer sentiment.
In North America, net sales fell 10.9 percent, or 9.2 percent at constant exchange rates, primarily due to a double-digit decline in wholesale performance.
Central and South America saw a decline of 8.6 percent in total net sales, or 11 percent at constant exchange rates. While DTC performance remained stable compared to the last yearThe wholesale segment experienced a significant reduction.
The Asia Pacific region faced a 19.3 percent decline in net sales, or 15.5 percent at constant exchange rates, with Greater China and Korea particularly hard hit by weak consumer sentiment. In contrast, the rest of Asia Pacific benefited from increased travel, leading to positive results. The Japanese market also reported a decline in net sales of 15.7 percent, or 4.4 percent at constant exchange rates, despite improvements in the DTC trend during February and March.
“Over the last few quarters, we have continued to implement our strategy of a renewed Ferragamo, a new product offering, a communication model focused on creating awareness of the renewed brand, a redesigned and more efficient customer experience through CRM optimization and a new store concept. ” saying Marco Gobbetti, CEO.
Fiber2Fashion News Desk (DP)
