Italian luxury brand Ferragamo is reporting a 4,8% drop in sales in the first half of 2023 compared to the same period in 2022. At the same time, the company's net profit in the reporting period decreased by 65,4% year-on-year, writes Worldfootwear.com.
“In the first half of the year, we made good progress in implementing our strategic priorities in line with our plans. We have focused on operational improvements and brand initiatives to support the new offering in line with our customers' expectations, while continuing to optimize our retail and wholesale networks,” said Marco Gobbetti, Chief Executive Officer and CEO of Ferragamo.
According to the manager, the company is pleased with the first results of the products, which were developed by the new creative director of the brand, Maximilian Davies, who was appointed to this position in March 2022. “These new products still make up a very small part of the overall brand offering,” says Gobbetti.
At the end of June, Ferragamo's total revenue was 600 million euros, down 4,8% FX-adjusted and 7,2% excluding FX compared to the same period a year earlier.
Sales in the first half of 2023 in the retail channel were 414,1 million euros, down 5,9% (or 4,5% FET), while wholesale channel revenue was down 13,3% (or 14,3 .166,8% excluding currency fluctuations) and reached 2022 million euros compared to the first half of XNUMX.
In the six months to June 30, Ferragamo's net profit for the reporting period was 21,4 million euros, down 65,4% from 61,9 million euros in the same period a year earlier.