In the second quarter of 2024, Italian footwear and leather goods brand Salvatore Ferragamo’s revenue reached 296 million euros, a decrease of 6% at fixed exchange rates and 8.1% at current exchange rates, mainly due to the weak Asian market and poor wholesale environment.
In the first half of 2024, the company’s revenue reached 523 million euros, a decrease of 10.9% at fixed exchange rates and 12.8% at current exchange rates. In the first half of the year, the company’s EBITDA decreased to 117 million euros, with operating profit of 28 million euros, a year-on-year decrease of 41%. Pre tax profit decreased to 15 million euros, net profit decreased to 6 million euros, and the group’s net profit was also 6 million euros.
Despite positive operational trends, our overall financial performance in the second quarter was still affected by a challenging consumer environment, particularly in the Asia Pacific region. At the same time, we continue to face weakness in our wholesale channels, “said Marco Gobbetti, CEO and General Manager of the company
Performance of various retail channels in Ferragamo
In the second quarter of 2024, the company’s direct to consumer (DTC) channel revenue decreased by 3.8% at fixed exchange rates and 5.5% at current exchange rates, with positive performance in Europe and Japan, flat performance in North America, but weak performance in the Asia Pacific region. In the first half of 2024, DTC channel revenue decreased by 5.5% at fixed exchange rates and 8.1% at current exchange rates.
In the second quarter of 2024, wholesale channel revenue decreased by 12.1% at fixed exchange rates and 8.7% at current exchange rates, reflecting the overall weak environment. In the first half of 2024, wholesale channel revenue decreased by 24.8% at fixed exchange rates and 23.1% at current exchange rates
Income decline in core areas of Ferragamo
In the second quarter of 2024, revenue in the Europe, Middle East, and Africa (EMEA) region decreased by 2.9% at fixed exchange rates and 2.7% at current exchange rates due to the impact of wholesale business. The performance of DTC channels increased by 5.4% compared to last year, while wholesale business experienced a negative growth of 11.3% at a fixed exchange rate. In the first half of 2024, revenue in the EMEA region decreased by 16.3% at fixed exchange rates and 16.1% at current exchange rates, with DTC channels growing by 4.6% and wholesale business decreasing by 32.8%.
