Italian brand Salvatore Ferragamo's revenue at €278 mn in Q1 FY23

The company's retail distribution channel saw a decline in consolidated net sales of 2.3 per cent (2.4 per cent at constant exchange rates) in Q1 FY23 compared to Q1 FY22, mainly due to a softening US market. However, there was a positive performance in the Europe, Middle East, and Africa (EMEA) region, and a progressively improving trend in China, with mainland Chinese customers driving the recovery in Hong Kong.

In Q1 FY23, the wholesale channel recorded a decrease in net sales of 13.9 per cent (16.1 per cent at constant exchange rates) versus Q1 FY22, due to the planned rationalisation of third-party networks, mainly in the US, the company said in a press release.

In terms of geographical performance, the Asia Pacific region registered a 13.6 per cent decrease in net sales (13.0 per cent at constant exchange rates) in Q1 FY23 compared to Q1 FY22, mainly due to the Travel Retail channel's decline. However, the retail sector in Greater China showed a positive performance.

The Japanese market also experienced a decline in net sales of 7.1 per cent in Q1 FY23 compared to Q1 FY22, but the EMEA region posted an increase in net sales of 24.7 per cent (25 per cent at constant exchange rates) compared to Q1 FY22.

North America recorded a net sales decrease of 19.8 per cent (23.4 per cent at constant exchange rates) in Q1 FY23 compared to Q1 FY22, with the wholesale channel underperforming more than proportionally due to the network rationalisation. On the other hand, net sales in the Central and South America region in Q1 FY23 were up 5.4 per cent (minus 5.7 per cent at constant exchange rates) versus Q1 FY22.

Footwear, which represented the largest share of net sales, experienced a decline of 0.4 per cent (1.7 per cent at constant exchange rates) in Q1 FY23 compared to Q1 FY22. Leather goods saw a decline of 14.8 per cent (15.3 per cent at constant exchange rates). On the other hand, the company's apparel sales increased by 8.6 per cent (8 per cent at constant exchange rates), and accessories sales saw a modest increase of 0.5 per cent (0.3 per cent decrease at constant exchange rates), the release added.

Marco Gobbetti, chief executive officer and general manager, said: “At the end of February, the first products designed by our new creative director, Maximilian Davis, arrived in our stores. While these represent a small portion of the overall intended collection, they are an important next step in the execution of our stated strategy of creating a new offering that is relevant for our customer aspirations and we are pleased by the early results.

“As the roll out of new products is at its early stages, it has not yet contributed meaningfully to the sales performance. It will not be until later in the calendar year that we will start to see the fuller appreciation of the more complete collection.”

Fibre2Fashion News Desk (DP)