Salvatore Ferragamo it closed the first nine months with revenues for 744 million euros, down by 9,8% at constant exchange rates and of 11,9% at current exchange rates, compared to the first nine months of 2023. In third quarter, revenues amounted to 221 million euros, down 7,2% at constant exchange rates and 9,6% at current exchange rates, penalized by the weakness of the Asian market, the secondary channel and the Wholesale business.
This morning at Piazza Affari the stock lost 2% to 6,345 euros. The day continued in decline.
“The third quarter results were affected by the difficult macroeconomic and consumption context, a situation that we expect to be able to continue even in the last part of the year” said Marco Gobbetti, CEO and General Manager of Salvatore Ferragamo “The lower propensity of consumers to purchase is more evident in theAsia-Pacific area and represents the factor that had the most impact on sales performance. The secondary channel was also impacted by the low level of traffic, which continues to affect the wholesale channel. Encouraging results in sales in the primary retail channel in Europe, Japan and Latin America, in all the main product categories of the renewed offer of continuous, and in particular in women's bags and shoes also led by some new icons, added the CEO.
During the meeting he was co-opted Ernesto Greco as a member of the board of directors and it was decided to call the ordinary and extraordinary shareholders' meeting for the November 26, 2024.
2024 operating result expected at the lower end of consensus
In this context, “performances are below our expectations and they are delaying the completion times of our financial obiettivi” added Gobbetti, while the note states that “In light of the ongoing uncertainties regarding demand from luxury consumers, we expect that the Operating income for the entire financial year it will be placed at the lower end of current analysts' expectations".
The Board of Directors, which examined the accounts, also co-opted Ernesto Greco as a member of the Board of Directors and resolved to call the ordinary and extraordinary Shareholders' Meeting for next November 26th.
Asia loses the most with -16,7%, followed by EMEA with -11,5%
In the detail of the markets, the emea archived the nine months down by 11,5% both at constant and current exchange rates for 184,5 million, due to the wholesale channel decreasing by 28%. North America recorded a decrease of 6,4% at constant exchange rates to 207,7 million and of -6,1% at current exchange rates, while the Central and South America lost 3,3% at constant exchange rates and -7,3% at current exchange rates for 54,5 million. Asia Pacific area lost 16,7% at constant exchange rates (-18,1% at current exchange rates) to 216,1 million. Finally, Japan grew by 3,9% at constant exchange rates (-5,4% at current exchange rates) to 60,9 million.
By sales channel, direct retail lost 5,6% at constant exchange rates (-7,9% at current exchange rates) to 552,2 million, while wholesale lost 22,1% at constant exchange rates (-21,0% at current exchange rates) to 171,6 million.
