Jan 29, 2020
Salvatore Ferragamo revenue up in 2019 despite big Q4 Hong Kong slump
Jan 29, 2020
Italian luxury label Salvatore Ferragamo recorded a 2.3% rise in revenue in 2019, reaching €1.37 billion, despite plummeting sales in Hong Kong in the third and fourth quarter of the year.
Asia-Pacific remained the group's main market, accounting for 37.1% of sales, which rose by 1.1% in the course of the year, with a notable 13.8% increase in China.
The region’s performance was however negatively affected in Q4 by the troubled political situation in Hong Kong, where retail sales for Ferragamo fell by over 50% at constant exchange rates, having already slipped by 45% in Q3.
Revenue instead rose by 7.1% in Central and South America, by 5.3% in Europe and by 0.7% in North America. Japan bucked the trend, posting a 0.5% decrease.
Ferragamo has been suffering from brand positioning issues in recent years, and its revenue lost 3.4% in 2018, with net income down 21.1%, after experiencing difficulties in 2017 too.
To get back on track, the Florentine label embarked on an in-depth organisational overhaul, trying to strengthen its position in the product categories where it was weaker, while consolidating its footwear business.
In 2019, Ferragamo’s footwear sales increased by 3.8%, and those of handbags and leather accessories by 3.7%. Fragrance sales were instead down by 6.7%.
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