Mixed results for Italian shoemakers
Exports of Italian footwear grew 16% in value in the first quarter of the year, but volumes fell 2%, according to manufacturers’ association Assocalzaturifici.
Sector turnover grew 14% but production fell 1%.
Giovanna Ceolini, chair of Assocalzaturifici, said: “After yet another record being broken with the final balance for exports in 2022 (12.7 billion euro, +23% over 2021), the growth in exports continued, with a further +16.1% increase in value,”
“In particular, all the top 20 international destinations for Italian footwear, with the sole exception of Switzerland (-7.8%), saw increases in value, that were almost always in double-digit territory.
“However, the situation is different for volumes, as North America slowed down noticeably (-19.4%) and decreases were seen in Germany (-8.8%), the United Kingdom (-10.1%) and in direct flows to Switzerland (-24.8%), the traditional logistics hub for luxury brands.
“There was a strong recovery in Russia and Ukraine, although it should be noted that in March last year, immediately after the start of the conflict, sales to these two markets had plummeted; the results for Kazakhstan (+77% in value) were very positive. The recovery in the domestic market also continued (+8.2% in household purchases over Q1 2022)”.
Companies' forecasts for revenues for the second quarter onwards remain positive, but appear to be cooling.
“Prices for energy and raw materials are currently the biggest problem for footwear companies, due to their impact on balance sheets,” added Ms Ceolini. “The analysis confirmed once again the sector’s difficulties in finding skilled labour - with 84% of entrepreneurs identifying this as a significant problem for their businesses."
The leather uppers footwear segment - the leading segment, which accounts for 63% of the value of exports - is the only one to have increased in the first quarter both in value terms (slightly above the average, +18.6%) and volume (+1.4%) compared to the same period in 2022; nevertheless, volumes are still down markedly compared to 2019 (-16.6%).
Image: Italian shoe fair Micam
