Italian luxury group Salvatore Ferragamo reports sales growth in 2022 in all regions except Asia-Pacific, where growth slowed due to quarantine measures related to the spread of COVID-19 in China, writes Worldfootwear.com.
“Despite the start of our strategic refocus, 2022 was also another year of revenue growth, in which we successfully built sales quality across our retail stores and began optimizing our wholesale channel in a challenging and volatile macro environment. In particular, the fourth quarter was affected by the return of the Covid-19 epidemic in China. Although quarterly revenue was lower than the previous year, we continue to prioritize sales quality in line with our full price strategy. Today, we are very encouraged by the positive results and have high hopes for sales growth in China, noticing the reaction of customers after the removal of covid restrictions. We are encouraged by the potential of Ferragamo, which is based on a new product offering that will gradually increase in share throughout 2023, as well as a renewed brand image and a strong management team,” commented Marco Gobbetti, Chief Executive Officer and CEO of Salvatore Ferragamo.
In 2022, Ferragamo's consolidated revenue was €1,25 billion, representing an increase of 10,2% FX-adjusted and 5,7% FX-adjusted compared to 2021.
In the reporting period, retail channel sales grew by 11,3% (up 4,7% excluding currency fluctuations), and wholesale channel sales grew by 13,6% (up 6,3% excluding currency fluctuations) compared to since 2021.
Ferragamo's Asia Pacific net sales were down 4,6% (down 10,6% FX-adjusted) in 2022 "primarily due to the impact of the resurgence of Covid-19 in the region, especially in China", in while the Japanese market recorded an increase in net sales of 11,9% (18,9% excluding currency fluctuations) compared to last year.
In 2022, the EMEA (Europe, Middle East and Africa) region recorded a net sales growth of 24,7% (24,6% excluding currency fluctuations) compared to the previous year. The luxury group's net sales increased by 22,3% (up 8,8% FX-adjusted) and 29,7% (up 14,7% FX-adjusted) in the North America, Central America and South America regions, respectively, compared to 2021.
The group also indicated that all major product categories grew "significantly" over the period, with footwear and leather accounting for 87% of total net sales for the full year.