Salvatore Ferragamo H1 revenues down but profit up 2 percent

As of 30 June 2016, the Salvatore Ferragamo Group posted total revenue of 710 million euros (796 million dollars), registering a 2 percent decrease at current and 3 percent at constant exchange rates. The group had reported 722 million euros revenues in the first half of 2015, a 10 percent growth at current exchange rates.

The net profit for the period was 90 million euros (100.9 million dollars), marking a 0.3 percent increase. The Group net profit reached 90 million euros, as compared to 88 million euros in the first half of 2015, marking an increase of 2 percent.

Revenues by geographical areas down

In the second quarter, revenue totalled 389 million euros (436 million dollars) from 395 million euros (442 million dollars) in 2Q 2015, a 2 percent decrease at current and 4 percent at constant exchange rates.

The Asia Pacific area saw revenues decreasing by 4 percent both at current and constant exchange rates, mainly due to the deterioration of the business in Hong Kong. The retail channel in China recorded revenues rise of 1 percent, with an acceleration in 2Q 2016. Europe posted a decrease in revenues of 3 percent due to lower tourist flows. Revenues decreased 3 percent in the second quarter.

North America recorded revenue rise of 2 percent and a decline of 3 percent at constant exchange rates. The retail business, despite the strong currency that negatively impacted tourist flows in the United States, reported sales up 6 percent, while the wholesale business was down 4 percent, also due to the challenging comparison base. In 2Q 2016 revenues increased by 3 percent at current but declined 2 percent at constant exchange rate.

The Japanese market registered a 2 percent growth at current but a 5 percent decline at constant exchange rates. In 2Q 2016 revenues increased by 2 percent at current but were down 11 percent at constant exchange rates. The Central and South America area continued its positive growth, despite the penalization of the currency, reporting revenues up by 1 percent at current exchange rates and by 12 percent at constant exchange rates.

Decline in revenues by distribution channel

As of 30 June 2016, the Group's network totalled 662 points of sale, and could count on 388 directly operated stores (DOS), while the wholesale and travel retail channel included 274 third party operated stores (TPOS), as well as the presence in department stores and multi-brand specialty stores.

In 1H 2016 the retail distribution channel posted consolidated revenue decline of 2 percent at current and 3 percent at constant exchange rates, with an improving performance in 2Q. The wholesale channel registered a decrease in revenues of 1 percent at current and 3 percent at constant exchange rates. In 2Q revenues decreased by 3 percent at current and 6 percent at constant exchange rates.

Among the product categories, shoes revenues were up by 1 percent in 1H 2016, while handbags and leather accessories down by 3 percent. Fragrances were down 6 percent in the first half and down 13 percent in the second quarter.

Eraldo Poletto replaces Michele Norsa as the new CEO

Meanwhile, Michele Norsa has notified the company that effective from August 3, 2016, he resigns the office of Director and Chief Executive Officer of the company.

Following the turnover plan, the Board of Directors, has appointed Eraldo Poletto as the new Director and Chief Executive Officer of the company. Eraldo Poletto has a long-term experience in the fashion and luxury sector and has just terminated his collaboration as chief executive officer of the Furla Group.

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