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Salvatore Ferragamo announces financial results

Salvatore Ferragamo

The Salvatore Ferragamo Group, one of the global leaders in the luxury sector, released the Group’s Preliminary Consolidated Revenues for the first semester 2021, which amount to US$617 million excluding the Fragrance business, up 44.1 percent at current exchange rates and up 46.2 percent at constant exchange rates vs. 1H 2020.

SEE ALSO : Salvatore Ferragamo and Inter Parfums sign fragrance agreement

As of 30th June 2021 the Salvatore Ferragamo Group reported Total Revenues of US$617 million up 44.1 percent at current exchange rates (+46.2 percent at constant exchange rates) vs. the US$427 million recorded in 1H 2020. Revenues in 2Q 2021 registered a 91.3 percent increase at current exchange rates (+90.5 percent at constant exchange rates) vs. 2Q 2020.

The increase in Revenues has been achieved despite the permanence, in some countries, of lockdowns of the commercial activities, bans and restrictions on international traffic, due to the Covid-19 pandemic. At 30th June 2021, the Group is operating with 53% percent of retail stores at full capacity.

As of 30th June 2021, the Group’s Retail network counted on a total of 639 points of sales, including 398 Directly Operated Stores (DOS) and 241 Third Party Operated Stores (TPOS) in the Wholesale and Travel Retail channel, as well as the presence in Department Stores and high-level multi-brand Specialty Stores.

In 1H 2021 the Retail distribution channel posted consolidated Revenues1 up 46.3 percent (+49.4 percent at constant exchange rates). In 2Q 2021 Retail Revenues increased 81.3 percent (+82.9 percent at constant exchange rates), with four Areas (Greater China, North America, Latin America and Korea) exceeding the pre-Covid levels. The direct E-commerce channel continues to consolidate a solid growth at 30th June 2021, with Revenues up 70.6 percent (+78.3 percent at constant exchange rates).

In 2Q 2021 the direct E-commerce increased by 65.8 percent at constant exchange rates. The Wholesale channel registered an increase in Revenues of 41.1 percent (+40.5 percent at constant exchange rates) vs. 1H 2020.

In 2Q 2021 Wholesale Revenues were up 134 percent (+122 percent at constant exchange rates) vs. 2Q 2020.

The Asia Pacific area is confirmed as the Group’s top market in terms of Revenues, up by 35.2 percent (+34.0 percent at constant exchange rates) vs. 1H 2020.

In 1H 2021 the retail channel in Greater China posted a Revenue1 growth of 45 percent vs. 1H 2020 at constant exchange rates. In particular, the retail channel in China posted an increase in Revenues  of 47.4 percent vs. 1H 2020 at constant exchange rates. The retail channel in Korea also posted a solid growth trend in 1H 2021 (+21.9 percent vs. 1H 2020 at constant exchange rates).

The Japanese market registered a 13.4 percent increase in Revenues1 (+18.2 percent at constant exchange rates) in 1H 2021, with a positive trend in 2Q 2021, (+55.0 percent at current exchange rates and +66.9 percent at constant exchange rates2) vs.2Q 2020.

Overall the Asian continent represents currently over 50 percent of total Group’s revenues in 1H 2021. EMEA, still penalized by lock-downs of stores and mainly by the limited tourists’ flows in 1H 2021, posted an increase in Revenues of 22.3 percent (+20.6 percent at constant exchange rates) vs. 1H 2020, with 2Q 2021 positive (+113 percent at constant exchange rates) vs. 2Q 2020.

North America recorded a Revenue increase of 103 percent (+122 percent at constant exchange rates) in 1H 2021 vs. the same period of last year. In 2Q 2021 Revenues more than quintupled vs. 2Q 2020.

Revenues in the Central and South America in 1H 2021 were up 64.8 percent, (+72.9 percent at constant exchange rates). Revenues increased by 680 percent at US$18.8 million in 2Q 2021 from US$2.3 million posted in 2Q 2020.

All main product categories reported an increase in 1H 2021 vs. the same period of last year, with shoes and leather categories representing respectively 43 percent and 45 percent of the turnover in the first half.

The month of July is continuing to show a solid growth in Revenues in directly operated stores in the United States, China, Korea and Latin America, both vs. 2020 and vs. the same period of 2019. At the second week of July, the worldwide retail performance is in line with pre-Covid levels.

SEE ALSO : Richemont announces financial results

The company signed a sustainability linked loan with UniCredit for a maximum total amount of US$94 million. The credit facility is structured as a revolving credit line with a maturity in 2025 and has a rewarding mechanism linked to specific environmental and social sustainable indicators that will be verified annually.

Thanks to this credit facility, Salvatore Ferragamo consolidates its already solid liquidity position and emphasizes the Company’s constant commitment to sustainability, through strategies and initiatives aiming at minimizing the environmental impacts.