Italy's Salvatore Ferragamo posts double digit revenue growth in FY22

The company's net sales by geographical area showed that the Asia Pacific market experienced a 4.7 per cent decrease in net sales, down 10.6 per cent at constant exchange rates, in FY22, compared to FY21, mainly due to the resurgence of COVID-19 in the region, particularly in China. However, the Japanese market saw an increase in net sales of 11.9 per cent, up 18.9 per cent at constant exchange rates, compared to the previous year, while Europe, Middle East, and Africa (EMEA) posted a net sales increase of 24.7 per cent, up 24.6 per cent at constant exchange rates, and North America recorded a net sales increase of 22.3 per cent, up 8.8 per cent at constant exchange rates.

The Central and South American markets also saw a significant increase in net sales of 29.7 per cent, up 14.7 per cent at constant exchange rates, in FY22, compared to FY21, Salvatore Ferragamo said in a press release.

The company's main product categories, including shoes and leather, reported a significant increase in FY22 compared to the previous year, representing 87 per cent of net sales for the full year.

Additionally, the gross profit in FY22 increased by 15.4 per cent compared to FY21, reaching €901 million, with an incidence on revenues up 320 basis points to 72 per cent from 68.8 per cent in the previous year.

However, operating costs for FY22 amounted to €773 million, up 21.3 per cent at current exchange rates compared to FY21, up 15.9 per cent at constant exchange rates,, mainly driven by the planned increase in marketing and communication expenses. The company's gross operating profit (EBITDA) amounted to €299 million, down from €305 million in FY21, with an incidence on revenues of 23.9 per cent compared to 26.8 per cent in the previous year. The operating profit (EBIT) was positive for €128 million, down 10.8 per cent compared to €143 million in FY21.

The profit before taxes in FY22 was positive for €101 million compared to €123 million in FY21, while the net profit for the period, including the minority interest, was positive for €65 million compared to €81 million in FY21. The FY22 group net profit was positive for €70 million compared to €79 million in FY21.

“In 2022 we defined our strategic framework and made excellent progress on the implementation of our priorities. We pursued the quality of sales and significantly increased investments, especially in marketing and communication, and are pleased with the results achieved. We are encouraged by the early results of the Spring-Summer’23 collection, launched in our stores in February, and by the success of our recent Fall-Winter’23 Fashion Show. Although the macroeconomic environment remains volatile and complex, we are excited by the potential of Ferragamo and will continue to invest behind our growth ambition,” said Marco Gobbetti, chief executive officer and general manager.

Fibre2Fashion News Desk (DP)