Sales at Italian luxury group Salvatore Ferragamo declined by 6.5 percent at constant exchange rates in the first quarter, hit by a slowdown in the US market, the company said on Thursday.

Revenues totalled €278 million ($305 million), broadly in line with analyst expectations of €280 million, according to a Refinitiv consensus.

At the end of February, the first products designed by the new creative director, Maximilian Davis, arrived in the group’s stores.

However, they have “not yet contributed meaningfully to the sales performance”, chief executive Marco Gobbetti said in a statement.

Sales in North America fell by 23.4 percent in the quarter, mainly due to the rationalisation of the distribution network, while they posted an improving trend in China.

The Covid-19 pandemic crisis has hit family-owned Ferragamo just as the company was striving to rejuvenate its historic brand, famous for the shoes worn by Hollywood stars such as Audrey Hepburn.

Gobbetti, who joined in early 2022 from Burberry, has promised a quick turnaround, vowing to increase investments, revamp stores and attract younger customers to double 2021 revenues to almost €2.3 billion by 2026.

“We remain confident in our plans and confirm our mid-term ambition”, he said in the post-results conference call with analysts.

Analysts outline that quarterly sales are still highly exposed to the old collection and the wholesale channel the group aims to streamline.

“The results are not meaningful for assessing the potential of the new product offering,” Intesa Sanpaolo analysts said in the bank’s daily report.

Davis was appointed creative director in March last year as part of the new CEO’s plans to revamp the brand.

By Claudia Cristoferi, Editor Federico Maccioni

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