Gucci'S Former Executive Helm Ferragamo Is Now Showing Signs Of Recovery.

In the first quarter, Salvatore Ferragamo SpA (SFER.MI) Fei Ferragamo resumed sales growth in almost all regions, and the overall profit level also improved significantly. Investors received the signal of a rebound in performance, and the share price of the Italy luxury group increased by 10.6% to 21.4 euros on Wednesday.

Salvatore Ferragamo Ferragamo group's core retail index - 2.2% growth over the first quarter of sales, reverses the past ten consecutive quarters of decline, and in the past four years, even if it is safe from retrogression, it can only develop smoothly.

Like the vast majority of luxury goods groups, the mainland is still the biggest growth driver. The management especially mentioned that the fixed exchange rate of China's retail channels increased by 17.7% compared to the same period last year, which is much faster than the 10.1% growth in the four quarter and zero growth in the same period last year. The largest market in the Asia Pacific region also recorded a 7.7% increase in revenue, leading to 2.8% and 2.1% growth in the European and Japanese markets.

Alessandro Corsi, chief financial officer, points out that other parts of Asia and Europe are benefiting from the consumption power of Chinese tourists, while the downturn in North American department stores and shopping malls continues to oppress local businesses.

Not only did retail business regain momentum, but wholesale revenue also benefited from a strong double-digit growth in tourism retail sales, which increased by 7% annually.

A total of more than 81% of the group's contributions to shoes and leather goods two departments achieved 7.3% and 8.7% of the substantial growth.

In the first quarter, the Salvatore Ferragamo Ferragamo group had a total revenue of 317 million 100 thousand euros, up 4.3% from 303 million 900 thousand euros in the same period last year; adjusted EBITDA also increased 4.1% to 33 million 778 thousand euros, and two data met market expectations.

The gross profit margin of 63.3% and the operating profit margin of 6.7% increased by 100 basis points over the same period last year.

As of March 31st, the group had 398 direct outlets and 264 third party sales outlets, representing a total net reduction of 10 compared to 672 months ago three months ago.

Salvatore Ferragamo SpA (SFER.MI) on Wednesday received 21.25 euros, an increase of 9.9% in the whole day, and the increase to 20.4% in 2019.

Kepler Cheuvreux and Soci e t e G e n e rale SA, the Bank of France, raised their rating from "selling" to "holding" on the basis of initial signs of recovery. The target price was set at 20 euros, and Banca Akros analyst believed that it had revive the attraction of Italy brand.

Micaela Le Divelec Lemmi told analysts at the conference call that the key to recovery is the product. Alessandro Corsi also claimed that the group now has the right product to drive the passenger flow and the brand has regained its heat. He also said that the number of customers under the age of 35 is increasing.

During the first quarter, Salvatore Ferragamo Ferragamo upgraded the British designer Paul Andrew to the creative director. He joined the group in 2016 as the director of women's shoes and shoes, and became a creative director of women's clothing a year later.

Gucci Micaela Le DivelecLemmi, the former executive vice president of Gucci, and Ferruccio Ferragamo, the oldest son of the group's late founder Salvatore Ferragamo, now serves as group CEO and chairman of the board respectively.

As a family business in the Italy fashion and luxury industry, Ferruccio Ferragamo has repeatedly reiterated its decision not to sell after the death of Salvatore Ferragamo wife Wanda Ferragamo in October last year at the age of 96.