Home / Knowledge / News / Fashion / Salvatore Ferragamo net slips despite H1 revenue hike
Salvatore Ferragamo net slips despite H1 revenue hike
01
Sep '14
Despite posting a 6% year-on-year gain in revenues, first half of 2014 net profit slipped 6% at Italian luxury fashion retailer, Salvatore Ferragamo S.p.A

Salvatore Ferragamo reported revenues of 659 million Euros, up 6% at current exchange rates, over 625 million Euros it clocked in the first half of 2013. The luxury fashion brand said sales growth at constant exchange rates was 8%.

However, net profit in the first six months of 2014, inclusive of minority interest of 4 million Euros, reached 82 million Euros, down 6% from a year ago period. But rose 10%, excluding the capital gain, derived from the disposal of the participation in ZeFer, Salvatore Ferragamo said.

Asia Pacific was the top revenue generator with a growth of 11% year-on-year, led by the retail channel in Greater China, which grew at an astounding 15% from a year ago in the second quarter of 2014.

Despite geopolitical tensions in Europe which negatively impacted global tourist flows, Salvatore Ferragamo said the region posted a sales hike of 9% in first half of 2014 over corresponding period of 2013.

North America, strongly impacted by the unfavourable weather conditions in the first part of the year, recorded a solid revenue growth of 12% in the second quarter of 2014, bringing the increase in first half of 2014 to over 7% from a year earlier.

Sales in the Japanese market increased 6% year-on-year in the first six months of 2014, despite falling 4% in the second quarter of 2014, penalized by the expected slowdown due to the consumer tax increase.

Revenues in the Central and South America marked a turnover jump of over 23% year-on-year in the first half of 2014, which Salvatore Ferragamo attributes to reorganization of the distribution network in the region.

In the period under review, gross profit increased by 5% year-on-year, reaching 414 million Euros and as a percentage of sales moved up from 62.8% to 63.1%, while operating costs grew by 4%, touching 293 million Euros and as a percentage of sales fell 44.5% from 45.2%.

Profit before taxes, over the period, moved down to 118 million Euros from 121 million Euros in the first half of 2013, inclusive of 13 million Euros capital gain derived from the disposal of the participation in ZeFer. Excluding the capital gain, profit before taxes increased 9%.

Net working capital rose 25% to 301 million Euros at the end of June 30, 2014, from 241 million Euros as on June 30, 2013 and inventory went up to 335 million Euros from 288 million Euros in the periods under review.

Capex at Salvatore Ferragamo reached 34 million Euros in first six months to June 30, 2014, up 35% from a year earlier, which it said is mainly attributable to opening new stores, enlargement and refurbishment of existing key locations and enhancing logistics and digital projects.

After a dividend distribution of 67 million Euros in May 2014, net financial debt as on June 30, 2014, touched 114 million Euros compared to 78 million Euros on June 30, 2013.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Infinited Fiber Company

Textiles | On 21st Apr 2021

Infinited Fiber plans to build €220 mn flagship factory in Finland

Circular fashion and textile technology group Infinited Fiber Company ...

Pic: Fespa

Textiles | On 21st Apr 2021

Print production technology will continue to evolve: FESPA CEO

Print production technology will continue to evolve, and new...

Pic: Sundry Photography / Shutterstock.com

Retail | On 21st Apr 2021

US omnichannel retailer Kohl’s and Investor Group reach agreement

Kohl’s Corporation, a leading omnichannel retailer in the US, has...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Fashion tech has to be lean and very productive

Textile Industry, Head honchos

Textile Industry
Head honchos

Estimate loss of $8-$10 billion in turnover

Kurt Wedgwood,

Kurt Wedgwood

From design to raw material to fabrication and ultimately to delivery -...

Nick Isles,

Nick Isles

The Condé Nast College of Fashion & Design or CNC as it is known as,...

Alberto Gotti,

Alberto Gotti

Danitech was born from the will of a group of technicians to offer the...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search