The net sales of the company stood at €1,009.3 million (~$1,041 million) in 2024, marking a 9.8 per cent decline (8.5 per cent at constant exchange rates) compared to €1,119.5 million in 2023, Salvatore Ferragamo said in a press release.
Distribution channel-wise, Direct-to-consumer (DTC) sales accounted for €776.7 million, representing 75.0 per cent of total revenue, down by 5.8 per cent (3.8 per cent at constant exchange rates) from the previous year. Wholesale revenue saw a more significant drop of 21.2 per cent (21.3 per cent at constant exchange rates), falling to €232.6 million from €295.3 million in 2023.
Segment-wise, Footwear remained the largest segment, contributing €461.0 million, or 45.7 per cent of net sales, but declined by 9.9 per cent (8.7 per cent at constant exchange rates) compared to 2023. Leather goods, accounting for 40.9 per cent of net sales at €412.8 million, saw an 8.5 per cent drop (7.1 per cent at constant exchange rates). Apparel sales fell the most, decreasing by 17.7 per cent (16.2 per cent at constant exchange rates) to €60.5 million from €73.5 million. The Silk & other category generated €75.0 million, maintaining its 7.4 per cent share of net sales, but declined by 9.6 per cent (8.7 per cent at constant exchange rates) year-on-year.
Region-wise, total net sales in Europe, Middle East, and Africa (EMEA) decreased by 7.8 per cent YoY at constant exchange rates (-8.9 per cent at current exchange rates). In North America’s net sales went down by 2.6 per cent at constant exchange rates and at current exchange rates. Net Sales in Asia Pacific decreased 18.9 per cent at constant exchange rates (-19.7 per cent at current exchange rates vs FY 2023. Central and South America’s sales increased by 1.0 per cent at constant exchange rates (-3.0 per cent at current exchange rates). Japan saw an increase of 3.2 per cent at constant exchange rates (-4.3 per cent at current exchange rates).
Fourth quarter (Q4) financials
As per the preliminary reports, the company generated consolidated revenues of €291 million (~$301.65 million) in the fourth quarter (Q4) of 2024, down 4.0 per cent at constant exchange rates and down 6.7 per cent at current exchange rates vs Q4 2023.
Region-wise, EMEA posted total net sales increased by 4.5 per cent YoY at constant exchange rates (-0.4 per cent at current exchange rates) in Q4 2024. North America recorded an increase in total net sales of 6.3 per cent at constant exchange rates2 (+5.4 per cent at current exchange rates).
Meanwhile, Central and South America’s sales went up by 10.7 per cent at constant exchange rates (+7.3 per cent at current exchange rates). Japan registered an increase in total net sales of 1.2 per cent at constant exchange rates (-1.2 per cent at current exchange rates). The Asia Pacific region registered a decrease in total net sales of 24.8 per cent at constant exchange rates (-24.0 per cent at current exchange rates).
“In 2024 we completed the roll-out of our new product offer, redesigning and enriching our proposal. In Q4 the positive result of the primary DTC channel was driven by the performance of handbags extending to shoes, in particular thanks to new successful icons, such as the Hug bag and the Zina ballet shoe. We also worked on maximising the awareness of the brand, driving desirability and engagement, through impactful communication initiatives, including ‘Three Days in Florence’ and ‘Holiday’ campaigns,” said Marco Gobbetti, chief executive officer (CEO) and general manager at Salvatore Ferragamo. “We are pleased with the foundations we have built and, whilst we remain conscious of the persisting complex market context, we are encouraged by the trends we identified at the end of the year. January shows an acceleration in our DTC channel’s growth, albeit supported by the different timing of the Chinese New Year and a favourable comparison base versus last year.”
Fibre2Fashion News Desk (SG)