Ferragamo'S Overall Revenue Dropped To 6.2% In The Three Quarter.

Salvatore Ferragamo Ferragamo three quarter retail sales increased 11% in mainland China

Italy

Group Salvatore Ferragamo SpA

Wholesale business deteriorated further during the three quarter of retail stabilization, and Eraldo Poletto, the group's new chief executive, described the revitalization of analysts at his first performance conference.

The idea.

The decline in the wholesale business in fixed exchange rates from 3% in the first half to 18.6% was offset by the termination of the decline in retail channels, which accounted for more than 60% of revenue. In the three quarter, Salvatore Ferragamo SpA Ferragamo's overall revenue accelerated decline, from 3% in the first half to 6.2%, and 1.7% in real exchange rate to 304 million euros.

The largest market in the Asia Pacific region was significantly warmer in mainland China. Fixed exchange rate domestic retail revenue rose 11%, showing a unique situation, while Hongkong continued double-digit declines, narrowing from 15% in the first half to 15%, dragging down the region's overall revenue by 3% over the same period last year.

The Japanese market also weakened Chinese passenger spending power and plunged 17% in the same period last year due to the sharp appreciation of the yen.

The weakening of retail sales is most obvious in the European and American markets.

During the second major markets, the wholesale income in North America and the third major markets dropped 12% and 26% respectively. The group pointed out that this was related to the drop in passenger flow and the prudent policy of department stores. Eraldo Poletto explained that the group hoped to avoid the opportunity of reducing stock prices to department stores.

Meanwhile, Europe's retail income declines narrowed from 11% in the first half to 6%, while the growth rate in North America rose slightly from 6% to 7%.

In the first nine months, the total income of the group was 1 billion 13 million 900 thousand euros, which basically met the market expectations of 1 billion 15 million euros, 0.7% less than last year's 1 billion 21 million euros, and the fixed exchange rate decreased by 4%.

Core profit EBITDA also dropped 0.7% to 216 million 100 thousand euros per year, less than 220 million 200 thousand euros expected by the market.

Net profit edged up 0.2% to 112 million 500 thousand euros.

In the three quarter, the cost of operation increased by 7% because of the replacement of CEO.

Salvatore Ferragamo SpA chairman Ferragamo Ferruccio Ferragamo at the performance meeting pointed out that the Eraldo Poletto from the rapid growth of Furla SpA in recent years will bring "innovation" instead of "reform" to the group.

Eraldo Poletto revealed that the comparable sales of the retail network is the focus of his attention. For this reason, all aspects of store display, category supply, supply chain and so on will face significant changes, so as to improve the efficiency of existing stores by taking consumers as the starting point.

As of September 39th, the group has 673 sales outlets, 396 of which are direct outlets, and 277 wholesale and tourist retail outlets.

Ernesto Greco, chief financial officer, also adds that much of the future revenue growth will come from comparable sales, while store expansion will be limited to emerging markets and regions.

Eraldo Poletto also called his goal to make the brand more modern and modern.

For all the categories that are still shrinking this year, the group is the key to regaining consumers.

In the first nine months, the income of two categories of shoes and leather goods, which accounted for 43.2% and 36.4% of the group's income respectively, recorded a decline of 2.7% and 4.7% in fixed exchange rates.

Since the departure of Massimiliano Giornetti, the creative director of 12 years, in March this year, the management has appointed new designers for various categories. The designers of women's clothing and women's shoes have already been uncovered. They are Fulvio Rigoni and Paul Andrew, and the candidates for leather goods and men's garments are also in place, but they haven't disclosed their identity.