Salvatore Ferragamo closes 2023 with profitability and profit falling sharply, and a dividend falling to 0,10 euros. THE revenues of the Florentine fashion house fell by 7,6%, falling from 1,25 to 1,15 billion euros, while theNet income it dropped by 60%, from 65 to 26 million euros. This evolution brought the gross margin on turnover to 72,6%, an improvement compared to 72% in 2022. Furthermore, the Board of Directors proposed the distribution of a dividend of 0,10 euros per share, with the payment date scheduled for May 22, 2024 and the ex-dividend date of May 20, 2024.
The fashion house's accounts show significant drops across the entire balance sheet. This trend has been decisively reflected on title on the stock market, which suffered an aggressive decline of over 4%.
Ferragamo's 2023 accounts
THEebitda fell from 299 million euros in 2022 to 252 million euros in 2023, representing 21,8% of revenues, compared to 23,9% the previous year, while theebit was 72 million, down 43,7% from 2022. The net financial position positive result of 224 million euros, including the acquisition of minority shares in joint ventures in Greater China, represents a positive sign.
At the end of 2023 thenet borrowing it had risen to 486,65 million euros, compared to 204,07 million at the beginning of the year. In the whole of 2023, investments amounted to 72 million euros, compared to 56 million in the previous year, mainly following the renewal of the distribution network.
Sales are growing in Europe and Asia
Le net sales in the retail channel suffered a decline of 10,8%, in line with a broader market trend. Also the wholesale channel recorded a reduction of 12,2%, mainly due to the international situation and the US market.
In Pacific Asia, a decline of 13,1% characterized the year, although the fourth quarter saw an increase of 2,2% at constant exchange rates. In Europe, despite a reduction in scope in both channels, sales grew by 3,4%.
Il North America recorded a decline of 19,3%, in a fluctuating market context. The Central and South American area saw a contraction of 7,2%. Operating costs for 2023 were 767 million euros, down slightly compared to the previous year.
CEO Marco Gobbetti comments on Ferragamo's accounts
“In 2023 we have made good progress in our strategic priorities regarding brand, product, communication and distribution network – commented the CEO Marco Gobbetti -. We improved the quality of sales and invested to strengthen the brand and the relationship with customers, seeing encouraging signs from sales of new products. The Autumn-Winter '24 fashion show, which was held in February, and the inauguration of the women's store in Milan with the new concept, achieved excellent visibility and resonance". Finally, the CEO concluded: “Despite the impact of the current market environment on the timing of initial forecasts, we continue to pursue our growth ambitions, supporting profitability through constant attention to sales quality and a disciplined focus on costs".
