In Trends

Salvatore Ferragamo announces first half of 2020 revenue figures

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 2020, which amount to US$443.84 million down 46.6% at current exchange rates and down 46.9% at constant exchange rates vs. first half of 2019.

SEE ALSO : L’Occitane announces unaudited quarterly financial report

As of 30th June 2020 the Salvatore Ferragamo Group reported total revenues of US$443.84 million down 46.6% at current exchange rates (-46.9% at constant exchange rates) vs. the US$830.17 million recorded in first half of 2019. Revenues in 2Q 2020 registered a 60.1% decrease at current exchange rates (-59.4% at constant exchange rates).

The drop in revenues has been determined by the rapid diffusion of the pandemic caused by Covid-19 and the consequent decisions taken by the National governments regarding prohibitions and lock-downs of the commercial activities and of the international traffic, brought to the closure of the majority of the group’s store network in those countries and to a significant reduction in traffic in the remaining stores, in the period.

As of 30th June 2020, the group’s retail network counted on a total of 643 points of sales, including 389 directly operated stores (DOS) and 254 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 first half of 2020 the retail distribution channel posted consolidated revenues down 41.0%, with a decrease of 41.0% at constant exchange rates and perimeter vs. the first half of 2019, with the primary and secondary channel posting a similar performance.

In 2Q 2020 retail revenues decreased 51.2%, with a -51.0% like-for-like performance.

The wholesale channel registered a decrease in revenues of 56.4% (-56.8% at constant exchange rates) vs. first half of 2019.

In 2Q 2020 wholesale revenues were down 75.7%, mainly penalized by the performance of the travel retail channel and of fragrances.

The Asia Pacific area is confirmed as the group’s top market in terms of revenues, decreasing by 39.9% (-39.1% at constant exchange rates) vs. first half of 2019.

The 2Q 2020 performance in the area (-35.3% at constant exchange rates) benefitted from the positive performance of the retail channel in China, which recorded a revenue growth of 11.6% at constant exchange rates.

EMEA posted, in first half of 2020, a decrease in revenue  of 51.7% (-51.2% at constant exchange rates), with 2Q 2020 (-71.9% at constant exchange rates) strongly penalized by the stores closures and the lack of tourists’ flows in the period.

North America recorded a revenue decrease of 54.4% (-57.8% at constant exchange rates) in first half of 2020, with 2Q 2020 down 81,1% (-83.2% at constant exchange rates) strongly penalized by the stores closures in the period.

The Japanese market registered a 37.4% decrease in revenues (-39.3% at constant exchange rates) in first half of 2020, with 2Q 2020 down 56.1% (-58.4% at constant exchange rates) strongly penalized by the stores closures in the period.

Revenues in the Central and South America in first half of 2020 were down 54.6%, (-50.1% at constant exchange rates), with 2Q 2020 down 89.2% (-83.1% at constant exchange rates) strongly penalized by the stores closures in the period.

All product categories, at constant exchange rates, reported a decrease in first half of 2020 vs. the same period of last year. The Fragrances division registered a decrease in revenues of 66.6% vs. first half of 2019, as a consequence of the lock-down measures in the global markets, that resulted in the temporary closure of the majority of the distribution doors both in the domestic channel and in the travel retail.

SEE ALSO : Interparfums reports 2020 second quarter net sales

The month of July is showing an improvement in the revenue performance vs. the previous quarter, in all the geographies. In particular, as at 25th July the group has registered a solid growth in the directly operated stores in Mainland China, Korea and Japan vs. July 2019.

Follow Retail in Asia on Facebook, Twitter and LinkedIn.

Get our top stories delivered to your inbox:

 

Stay ahead
Subscribe for free!
Register now
Stay ahead