Ferragamo goes up on the stock exchange but not at the same pace as the price list. Important indications on the results of the first quarter of 2017 are expected from theShareholders' Meeting of next Thursday, since the Italian fashion house has declared that it will not publish the accounts for the first period of the current year.
The titles of the Florentine group register a rise of 1,87% and are exchanged at 27,30 €, while the Ftse Mib runs 3,9%. Investment bank analysts Equity expect a annual sales growth of the next collection and an overall increase in retail turnover for inter 2017. The wholesale channel, on the other hand, will suffer, affected by the destocking and the decline in Chinese tourism in Korea.
However, the market also comes to terms with the new indications relating to the Patent Box, the tax relief on intangible assets provided for by the 2015 Budget. The recent "maneuver” for the modification of the public accounts provides for the cancellation of the tax benefit for brands onlyi – to align with OECD principles to counter international tax avoidance – leaving it in place for other assets e without prejudice to the membership requests presented to the tax authorities for the two-year period '15-'16.
The agreement procedure with the tax authorities required the presentation of a full dossier. The choice made by the Revenue Agency was clear: carry out pilot cases to be able to define useful guidelines for everyone.
However, the exclusion of trademarks risks significantly reducing the appeal of the Italian patent box and of curb the growth of the luxury industry. As of today, they are only a dozen companies that have closed a deal with the Revenue Agency to benefit from the tax relief of excess profits deriving from the use of the brand, among which there is also Ferragamo. However, the stock is affected by the OECD's request to amend the current discipline in a restrictive key starting from 2020.
Equita, analyzing Ferragamo's performance, points the finger at the Patent Box: in fact, due to the recent change introduced to align with OECD principles, the Patent Box may be subject to limitations, but only in the period 2020-24. The experts explained the situation as follows: "assuming that around 70% of the annual benefits linked to the Patent Box derive from the trademarks, the absence of the same for the 20-24 period would imply a 1,4% impact on our valuation" .
