Ferragamo to scale back investments
Leathergoods and fashion group Salvatore Ferragamo has reported a dip in revenues of 30% in the first quarter following an expected decline in sales due to the coronavirus pandemic.
Revenues reached €222 million, while profit fell 82% to €12 million.
Many of the group’s suppliers, both in terms of raw materials and contract manufacturers in Italy, were temporarily closed during the quarter as the pandemic spread.
The group launched a new website at the end of April but will scale back marketing and is negotiating rent reductions for its stores.
It said: “To mitigate the negative effects for the group, the management has begun to implement several actions to contain expenses and investments. These include a continuous and consistent efficiency of all costs, an in-depth and constant control to maintain certain expenses, as well as limiting investments exclusively to those projects that are considered essential.”
