Salvatore Ferragamo closed the first half of 2017 with revenues of 718 million euros, up by 1,1% at current exchange rates and by 0,1% at constant exchange rates. Asia Pacific confirmed its leading market, growing by 6,1% (+4% at constant rates), despite the weak sales trend in South Korea, due to the sharp drop in Chinese tourism, and the trend sales still down in Hong Kong. Direct stores in China, on the other hand, reported an increase in sales of 12,2% (+15,9%).
Ebitda decreased by 17,9% to 166 million, with the incidence worsening to 19%, from 23,4%. Net profit amounted to 76 million, down by 15,4%. "It should be remembered - it is written in the note - that the net profit for the period benefits from a tax rate of 22,2% compared to 29,4% in the same period of 2016, due to the agreement reached on the Patent Box". The pertinent net profit was 78 million, down 13,1%.
By mid-morning, Salvatore Ferragamo's share on the Stock Exchange gained 1%, to 24,76 euros, achieving the best rise of the Ftse Mib.
At the distribution level, the group's Retail channel recorded consolidated revenues up by 4,7% (+4% at constant exchange rates), with a substantially stable performance (-0,2%) at constant rates and perimeter, compared the same period of 2016. The Wholesale channel, penalized in particular by destocking pending new collections and by tensions in South Korea, reported, in the first half of 2017, revenues down by 4,7% (-6,1% ).
Ferragamo's CEO, Eraldo Poletto, explained to analysts that the wholesale channel was affected by the "destocking" due to waiting for new collections and tensions in South Korea. On the other hand, the group's number one declared , “there will be an improvement in the second half of the year”.
In the first part of the year, the company invested 29 million euros, compared to 26 million euros in the same period of the previous year, mainly for the Logistics Center and the network of stores. At the end of June, the net financial position was positive by 25 million, compared to 75 million euros of Net Financial Debt at 30 June 2016. "We note, in particular, the significant cash generation which, during the first six months of 2017 , saw an operating cash flow of 130 million, compared to 42 million in the same period of 2016, also benefiting from the effect of the Patent Box”, underlines the note.
The press release then underlines that 2017 "is confirmed as a transitional period for Ferragamo through the implementation of wide-ranging strategic interventions and initiatives, extended to the main company areas, and with the expectation of realizing the consequent benefits over a longer time horizon". extended".
