Luxury Italian fashion brand and retailer Salvatore Ferragamo reports that revenue from its wholesale and travel retail division was flat (+1%) in the first quarter of 2016.
However, in 1Q 2016 the company’s retail distribution channel posted a -4% decline in consolidated revenues both at current and constant exchange rates.
As of 31 March 2016, the group’s network totalled 663 points of sale; 386 Directly Operated Stores (DOS), while the Wholesale and Travel Retail channel included 277 Third Party Operated Stores (TPOS), as well as the presence in Department Stores and high-level multi-brand Specialty Stores.
REVENUE DECLINE IN ASIA
In Q1 2016 the Group posted total revenue of €321m ($360m), registering a 2% decrease both at current and constant exchange rates, over the €327m ($367m) recorded in Q1 2015.
The Asia Pacific area, the Group’s top market in terms of revenue, saw revenue decrease of 3% (-2% at constant exchange rates) vs 1Q 2015, mainly due to the deterioration of the business in Hong Kong and Macao.
“The retail channel in China recorded a decline in revenue -6% in the first three months of 2016, penalized by the challenging comparison base (+22% in 1Q 2015),” says the brand.
REDUCED NUMBER OF CHINESE TOURISTS
The Japanese market registered a 2% growth (stable at constant exchange rates) in 1Q 2016, decelerating vs the last months of 2015, due to the lower Chinese tourist flow (also impacted by the appreciation of the yen vs the renminbi).
(Source: Travel Retail Business )