Ferragamo's restructuring hits profit
02/08/2017
Revenues of €718 million were 1% higher than the first half of 2016, but profit was down 18% to €136 million due to “destocking activity”.
Sales in Asia grew 6.1%, despite fewer Chinese tourists in South Korea and falling sales in Hong Kong. Sales in China grew 12.2%.
The Japanese market registered a 3.4% decrease due to the rationalisation of the wholesale channel.
Sales in Europe and North America fell 2%, but rose 7% in South America.
The company said of the profit fall: “The current year is confirmed to be a transition period for the Salvatore Ferragamo Group, during which strategic initiatives in the major company’s areas are going to be implemented. The resulting benefits are expected to materialise over a longer period of time.”
Salvatore Ferragamo employs around 4,000 and operates 680 stores.
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