Sunny day for the stock exchange Salvatore Ferragamo, which in the middle of the morning gains 6,27%, to 19,06 euros, making a mark the second best increase in all of Piazza Affari (behind only the +16,83% of Eukedos). The better-than-expected half-year results triggered the wave of purchases, which brought with them positive assessments by analysts.
In detail, on Monday Salvatore Ferragamo made it known that it had returned to profit in first semester, closed with a profit of 33 million euros, which compares with the loss of 86 million recorded in the same period last year.
As for profitability, the ebit it stood at 66 million (from -72 million in mid-2020), well above market expectations, which stopped at 39,1 million. The gross margin, on the other hand, amounted to 361 million (+62,8%), with an incidence on turnover that increased by 790 basis points (from 61 to 68,9%), mainly "thanks to an increase in full-price sales and to a more favorable geographical, channel and product mix – reads the company note – as well as lower provisions for obsolescence”.
I operating costs at current exchange rates they amount to 295 million (+0,6% and +4% at constant exchange rates). The gross operating result it more than quadrupled, going from 32 to 144 million in one year, while i revenues they rose 44,2% year on year, to 524 million. There net financial position it has liquidity of 205 million (from 58 million in June 2020).
The company also announced that in July and August it continued “the sustained growth of direct store sales in the US United Statesin China, South Korea e Latin america compared to the same period of 2019”. Therefore, "global retail performance is close to pre-Covid levels".
During the conference call with analysts, Alessandro Corsi, CFO of Salvatore Ferragamo, underlined that "the consensus on sales is 1,1 billion and we believe it is reasonable, while in terms of ebit margin we expect a figure close to 10% at the end of the year ”.
Profitability margins are higher than analysts' expectations, as well as the targets for 2021. An ebit margin of 10% in fact translates into around 110 million, compared to the 63 million expected by the consensus of analysts.
“Although Ferragamo is still underperforming its peers in terms of revenues and margins – comment the analysts of Equity – the solidity of the gross margin and the reduction in inventories are encouraging and represent a more solid starting point for the relaunch of the group, which will be entrusted to the new CEO Marco Gobbetti from January". The broker raised the “buy” recommendation, placing the stock in the small cap portfolio.
While awaiting Gobbetti's arrival, yesterday the Board entrusted management powers to Michele Norsa, executive vice president of Salvatore Ferragamo.
