Luxury Ferragamo Shares Tumbling Three Days In 12.6% Days

According to the world clothing shoes and hats net, Italy

Group Salvatore Ferragamo SpA (SFER.MI) Fei Ferragamo confirmed in the middle of last week that this year's performance was cautious, investors worried about their short-term stock price outlook, and the big bank also lowered the target price accordingly, resulting in the group's stock price falling 12.7% in the past 3 trading days.

Market sources revealed that the management of Salvatore Ferragamo SpA Ferragamo was cautious when discussing business prospects at a meeting in Paris on Wednesday. The group confirmed in its subsequent statement that it will be a pitional year in 2017. Management will continue to take measures to enhance product development, optimize retail operations and normalize inventory levels.

The group also stressed the maintenance of the interim performance target set by investor day in early February this year.

In August last year, Michele Norsa became the new chief executive's Furla SpA SpA CEO Eraldo Poletto at the time's activities. It indicated that in the past 2017-2020 years, the growth rate of Salvatore Ferragamo SpA "Ferragamo" will reach two times the market level, and the profit margin will increase as the Group strives to improve the efficiency of existing stores.

However, the recent profit margins will be under pressure from the discount sale measures to clean up the seasonal inventory.

Data show that in the 2016 fiscal year, the group's net profit increased by 17% to 202 million euros per year, but its growth depended entirely on the new tax relief policy. The core profit of EBITDA 3.24 billion was only flat in the 2015 fiscal year, and the EBITDA profit margin dropped by 20 basis points to 22.5%.

Last year, the group hired three new design directors (Paul Andrew) for footwear, men's and women's garments.

The director of shoe design, Fulvio Rigoni, is the design director of women's garments and Guillaume Meilland.

During the convergence of new and old series, the brand usually promotes the old designer's aesthetic products with a high discount, resulting in the fluctuation of the performance, and the new

At least half a year after the full listing of the works can be completely reflected in the performance.

After the appointment of Gucci Alessandro, Gucci creative director Alessandro Michele in January 2015, the brand has been hit by a large discount sale, so profits have been hit.

Now Salvatore Ferragamo SpA Ferragamo management hopes that the new creative leaders can also promote sales improvement so as to increase profitability.

In March, Eraldo Poletto revealed that the number of same store sales in the first few months of this year has recorded a low digit growth rate, a decrease of 4.4% over the 2016 year. The contraction of the group in the four main markets last year resulted in an increase of only 0.6% to 1 billion 437 million 900 thousand euros in annual revenue and a 2.5% decrease in the fixed exchange rate.

Ernesto Greco, the former chief financial officer who left office in mid March, raised the target of a future EBITDA profit margin of 25% in his last performance analyst conference this month.

Bain & Co. Bain and Italy Luxury Industry Council Altagamma Altagamma released the 2017 growth forecast in the latest industry report released today, raising the expected growth forecast for 1%-2% to 3%-4%, mainly thanks to the significant recovery in Europe and China and the decline in Asian hard stock.

In the first quarter of this year, global luxury sales have increased by 4%, and annual sales are expected to rise from 249 billion euros in 2016 to 2540-2590 billion euros.

This also means that the growth target of Salvatore Ferragamo SpA, Ferragamo, has increased to 6%-8% passively this year.

In the first 6 years to the end of 2015, the group doubled its revenue by expanding its industrial growth and increased its net profit by two times.

Former CFO Ernesto Greco said earlier that the group would not close a lot of stores, he also pointed out that the opening of new stores has been unable to promote strong growth.

Analysts now focus on the same store sales performance in the four quarter.

Exane BNP Paribas SA, the analyst of farba, is optimistic about the sale of the autumn and winter series after the end of the season, and believes that this will become the starting point to stimulate the new round of stock price rise.

However, both the bank and Kepler Cheuvreux SA have lowered the target price of Salvatore Ferragamo SpA (SFER.MI), Exane BNP Paribas SA, which has cut 7% to 28 euros, and the latter lowered 5% to 27.5 euros.

The unit continued its downtrend last week and fell 0.4% to 25.13 euros on Monday.

Over the past 12 months, the stock has risen by 29.6%.

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