The Italian luxury house Salvatore Ferragamo recorded a 2.3% increase in turnover in 2019, to €1.37 billion, a first since 2015.
By Luxus Plus
Asia-Pacific remains the Group’s largest market, accounting for 37.1% of sales. Sales in the region rose by 1.1% year-on-year, with a 13.8% increase in China. Asian performance was nevertheless severely affected in the fourth quarter by the difficult political situation in Hong Kong, where retail sales fell by more than 50% at constant exchange rates, after an estimated 45% decline in the third quarter.
Sales also increased by 7.1% in Central and South America, 5.3% in Europe and 0.7% in North America. Sales in Japan, on the other hand, decreased by 0.5%.
A former Gucci executive, Micaela Le Divelec began as CEO of Ferragamo 18 months ago and has worked to rejuvenate the brand by investing in new products and digital marketing.
The Italian brand, which was suffering from a brand positioning problem, had seen its turnover fall by 3.4% in 2018 and its net profit by 21.1%, after an already very difficult year in 2017. In order to turn things around, the company has launched a major reorganisation. It deployed resources to strengthen itself in product categories where it was weaker, while consolidating its position in footwear.
In 2019, Ferragamo saw its sales of shoes increase by 3.8% and those of its leather bags and accessories by 3.7%
Read also > Salvatore Ferragamo reports stable nine-month results
