Ferragamo boasts ‘excellent’ TR performance

By Charlotte Turner |

Salvatore Ferragamo S.p.A.’s wholesale and travel retail channel delivered an “excellent performance”, reporting growth of 34.9%, up from €150.1 million, recorded over the first six months of 2011, to €202.4 million in 2012.


“The travel retail channel continues its excellent performance, thanks to Ferragamo’s widespread presence with mono-brand points of sale in major international airports and its ability to attract the interest of the global tourist flows,” says the company.


Ferruccio Ferragamo, Chairman of Gruppo Salvatore Ferragamo, spoke to TRBusiness.com recently about the company’s travel retail ventures: “The travel retail channel has always been very important for a global brand such as Salvatore Ferragamo, and as a result of increased tourist flows and the fact that people travel far more than in the past, it has become an increasingly important channel in recent years.”


Salvatore Ferragamo S.p.A. is the parent company of the Salvatore Ferragamo Group, one of the world’s leaders in the luxury goods sector and whose origins date back to 1927.


The Group is active in the creation, production and sale of shoes, leather goods, clothing, silk products and other accessories, as well as women’s and men’s perfumes. The Group’s product range also includes eyewear and watches, manufactured by licensees.


Salvatore Ferragamo store



HY1 total revenues for Salvatore Ferragamo S.p.A. reached €565.1 million +22.9% with pre-tax profit rising by 37.7 % to €88.3 million vs 2011.


The company recorded an EBITDA of €104.7 million +25% compared to €83.8 million YOY and net profit reached €55.9 million, +22.5% compared to €45.7 million.


Revenue growth at constant exchange rate has been 17.8%. In Q2 2012 the Total Revenue growth at current exchange rate has been 22.5% (+16.7% at

constant exchange rate) vs Q2 2011, growing from €249.3 million to €305.5 million.


The group’s impressive revenue growth – posting an increase of at least 20% for the last nine consecutive quarters – is a result of Ferragamo’s strategy of focusing on “top quality products” and on the “Made in Italy” image, meeting the expectations and demands of its global customers.



As of 30 June 2012, the Salvatore Ferragamo Group’s retail network consists of 327 Directly

Operated Stores (DOS) while the Wholesale and Travel retail channel includes 267 Third Party Operated Stores (TPOS).


At 30 June 2012 the Retail distribution channel posted consolidated revenues of €353.9 million, a 17.3% increase over the €301.8 million YOY for HY1.


All product categories, with the sole exception of Ready to Wear, delivered a marked increase in revenues, above 20%, over the first six months of 2011.


The group was keen to highlight increased revenues in footwear (+24.3%) and in handbags and leather accessories (+25.1%), which together represent over 75% of group total turnover.




The fragrances division recorded an increase of 29.4% as a result of the launch of the women’s fragrance Signorina.


Gross profit, amounted to €359.5 million, recording a 23.1% growth and accounting for 63.6% of revenues, stable over 1H 2011, notwithstanding the increase of the wholesale and travel retail weight on total revenue, growing from 32.7% in HY1 2011 to 35.8% in HY1 2012.


All geographical areas delivered significant growth, with the sole exception of Japan, recording an increase of at least 20% at current exchange rates.


The Asia Pacific area is confirmed as the group’s top market in terms of Revenues, with a turnover of €212.4 million (representing 37.6% of total), up by 25.8% on the revenues of the first six months of 2011.


Salvatore Ferragmo storeCHINA +38%

This performance was achieved also through the contribution of the retail channel, which in China recorded a growth of 38% compared to the same period in 2011.


“Europe confirmed the extraordinary brand awareness of Ferragamo and its ability to attract the interest of the global tourist flows, also thanks to the Group’s renovation activity of the major points of sale in strategic locations worldwide, recording an excellent revenue growth of 26.4% in the first six months of 2012,” says the Group.


A significant contribution to growth also came from North America, where revenue recorded a growth of 20.6% in the first six months of 2012, and +16.1% at constant exchange rates in Q2.


The Japanese market registered a surge of 9.0% in Hy1 2012, thanks to the favourable contribution of the exchange rate (-2.3% at constant exchange rates).


Salvatore Ferragamo storeCENTRAL AND SOUTH AMERICA

Revenues in Central and South America also continued the excellent growth trend, registering an increase of 34.1% on the first six months of 2011.


“Attention to uniqueness and exclusivity, with a perfect blend of style, creativity and innovation enriched by the quality and craftsmanship of the ‘Made in Italy’ tradition, have always been the hallmarks of the Group’s products,” says the company.


“With over 3,000 employees and a network of 594 single-brand stores as of 30 June 2012, the Ferragamo Group operates in Italy and worldwide through companies that allow it to be a leader on European, American and Asian markets.”


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