On May 9th, Italian luxury goods group Salvatore Ferragamo Group (Milan Euronext stock code: SFER) released its first quarter report for the 2024 fiscal year ending March 31, 2024: revenue decreased by 18.3% year-on-year to 227 million euros (a decrease of 16.6% at fixed exchange rates).
Among them, revenue in the Asia Pacific region decreased by 19.3% year-on-year (a decrease of 15.5% at fixed exchange rates). Affected by weak consumer confidence, DTC and wholesale businesses in Chinese Mainland and South Korea both performed poorly; Benefiting from the increase in travel activities, the performance of other markets in the Asia Pacific region has shown positive growth.
Marco Gobbetti, CEO and General Manager of Ferragamo Group, stated, “In recent quarters, we have continued our established strategy of launching new products, establishing a communication model focused on enhancing brand awareness, redesigning and enhancing customer experience by optimizing CRM and new store concepts. These activities have increased the brand’s appeal, and our new products have gained good recognition from the media and industry.”.
This quarter, our performance was affected by the continuous fluctuations in the Chinese market, and the continued weakness in wholesale and tourism retail businesses further exacerbated the negative impact of the already unfavorable comparative foundation. As the luxury goods industry continues to normalize, we are encouraged by the exit rates seen in DTC’s business, especially in Europe, the United States, and Japan. We will further focus on customer engagement and communication activities around our DTC channel, as well as revenue performance. At the same time, we will continue to invest according to established strategic priorities, and improve profitability by strengthening sales quality and operational capabilities
