Ferragamo reports drop in sales
13/05/2016
This disappointing result didn’t prevent Ferragamo from increasing its profitability, recording 10% growth in net profit to €34 million. EBITDA increased 5.3% to €64 million and operating profit (EBIT) jumped 4.5% to €49 million.
Asia-Pacific, especially China and Hong Kong, performed poorly. The region, which contributes 36% of group turnover, saw revenues contract 3% (2.3% in currency-neutral terms). The company say they saw an upturn in sales towards the end of the quarter.
Latin America, Ferragamo’s smallest market, rode on the back of strengthening currencies to post an 8.4% increase in revenue at constant currencies. This was the only region to show growth. European sales remained affected by reduced tourism, posting a 4% decrease.
The company also confirmed that Eraldo Poletto will be taking over as CEO from August 2. He will replace Michele Norse who is stepping down from the role after ten years.
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