Italian brand Salvatore Ferragamo's revenues at €600 mn in H1 FY23

The retail distribution channel in H1 FY23 experienced a decline of 5.9 per cent (4.5 per cent at constant exchange rates) in consolidated net sales compared to H1 FY22. This drop has been attributed to a softer American market and planned store closures, despite positive performances in the Europe, the Middle East and Africa (EMEA) region and Greater China, the company said in a media release.

The wholesale channel also registered a decrease in net sales of 13.3 per cent (14.3 per cent at constant exchange rates) versus H1 FY22.

The Asia Pacific market noted a 12.9 per cent decrease in net sales (10.4 per cent at constant exchange rates) in H1 FY23.

The Japanese market also witnessed a decrease in net sales of 11.4 per cent (3.8 per cent at constant exchange rates) versus H1 FY22. However, the EMEA region bucked the trend by posting an increase in net sales of 10.8 per cent (10.9 per cent at constant exchange rates), recording a positive performance in both channels.

North America registered a net sales decrease of 17.3 per cent (18.6 per cent at constant exchange rates), mainly due to the underperforming wholesale channel and network rationalisation. Net sales in Central and South America remained broadly flat with a slight increase of 0.4 per cent (7.3 per cent decrease at constant exchange rates).

Despite these challenges, the gross profit incidence on revenues increased from 71.8 per cent in H1 FY22 to 72.2 per cent in H1 FY23. However, operating costs rose to €387 million, an increase of 8.2 per cent at current exchange rates (+9.3 per cent at constant exchange rates).

The gross operating profit (EBITDA) stood at €134 million, down from €180 million in H1 FY22. The operating profit (EBIT) was reported at €47 million, a significant decrease of 50.8 per cent compared to H1 FY22. Profit before taxes also saw a drop to €34 million versus €88 million in H1 FY22.

Finally, the net profit for the period amounted to €21 million, a 65.4 per cent decrease from H1 FY22's €62 million. The group's net profit for H1 FY23 was positive at €22 million compared to €62 million in H1 FY22, the release added.

“In this first part of the year, we made good progress in the execution of our strategic priorities, in line with our plans. We kept the focus on the operating improvements and brand initiatives to support a new offering that is relevant for our customer aspirations, while continuing the optimisation of our retail and wholesale networks,” said Marco Gobbetti, chief executive officer and general manager.

Fibre2Fashion News Desk (DP)