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.
Italian luxury goods group Salvatore Ferragamo said on Tuesday retail sales had grown in the first nine weeks of 2021, after posting its first full-year operating loss since listing in Milan 10 years ago because of the pandemic.
Earnings before interests and taxes (EBIT) recorded a €62 million ($73.68 million) loss compared with a €150 million profit in 2019 amid plummeting revenues and impairment charges Ferragamo booked on assets such as property and machineries.
Analysts on average had expected a €64 million EBIT loss for 2020, according to a Refinitiv consensus forecast.
The luxury shoemakers in January reported a 33 percent drop in 2020 sales, one of the worst performances in an industry grappling with shop closures to limit Covid-19 contagion and a lack of tourists.
ADVERTISEMENT
The virus crisis has complicated efforts to revamp the brand by Chief Executive Micaela Le Divelec, whose term expires in April, fueling speculation of a possible management overhaul.
Two sources close to the matter said on Tuesday the situation at the group was still uncertain in that respect.
By Claudia Cristoferi; Editors: Valentina Za and Agnieszka Flak.
The Hood By Air co-founder’s ready-to-wear capsule for the Paris-based perfume and fashion house will be timed to coincide with the Met Gala in New York.
Revenues fell on a reported basis, confirming sector-wide fears that luxury demand would continue to slow.
IWC’s chief executive says it will keep leaning into its environmental message. But the watchmaker has scrapped a flagship sustainability report, and sustainability was less of a focus overall at this year’s Watches and Wonders Geneva.
The larger-than-life Italian designer, who built a fashion empire based on his own image, died in Florence last Friday.