The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
MILAN, Italy — Italian luxury group Salvatore Ferragamo met its guidance for the year with a slight increase in 2019 revenues, despite protests in Hong Kong that weighed heavily on fourth-quarter sales in the region.
The 1.3 percent yearly rise in sales at constant exchange rates marks the first annual revenue increase for the Florentine brand since 2015, in a sign that a turnaround plan under Chief Executive Micaela Le Divelec is starting to bear fruit.
A former Gucci executive, Le Divelec started as CEO at Ferragamo 18 months ago and has been working to rejuvenate the brand by investing in new products and digital marketing.
Revenues eased 0.1 percent year on year at constant exchange rates in the three months through December, with Hong Kong retail sales falling more than 50 percent after a 45 percent drop in the third quarter.
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In the full year sales stood at €1.38 billion ($1.53 billion), in line with a Refinitiv analyst forecast.
Closely watched same-store retail sales rose by 0.2 percent in the last quarter, posting a 1.1 percent increase in the full-year.
By Claudia Cristoferi; Editor: Jan Harvey
As the Munich-based luxury e-tailer saw another quarter of high-flying sales and profit growth, its chief executive says speculations of the company going private are “not totally unreasonable” — but remains mum on widely reported M&A prospects.
The brand isn’t the only one struggling in a cooling luxury market, but the weak numbers increase pressure on CEO Jonathan Akeroyd to deliver Burberry’s long-awaited turnaround.
The luxury parka maker is aiming to elevate its image as it faces strong competition.
The futures of multi-brand luxury heavyweights Yoox Net-a-Porter and Neiman Marcus may be decided in the coming days.