Salvatore Ferragamo Group Net Profit Edged Up 0.2% Over The Same Period Last Year.

Recently, Italy

Group Salvatore Ferragamo released the first 9 months of this year's performance report, due to this year's global geopolitical and economic instability, frequent currency fluctuations and weak demand in the Asia Pacific region, sales in the first 3 quarters of the group continued to slow down compared with the same period last year.

In the 9 months ended September 30th, group net profit edged up 0.2% to 112 million 500 thousand euros, and sales revenue decreased 0.7% to 1 billion 10 million euros compared with the same period last year. Sales fell by 4% compared with the same period last year. Profits before group interest tax depreciation and amortization fell slightly from 0.7% to 216 million euro yuan, while operating profit dropped 2% to 170 million euros last year.

The new chief executive, Eraldo Poletto, said he would focus on products, especially footwear.

The development of products.

The company has appointed two new designer directors, including women's wear designer Fulvio Rigoni.

Designer Paul Andrew.

According to the sales channel, sales of group retail and distribution channels increased by 1.3% to 640 million euros over the past 9 months, and the growth rate in the third quarter accelerated.

At present, there are 673 sales outlets under the group, including 396 direct outlets.

Wholesale channel sales decreased by 4% over the same period last year, to 356 million 400 thousand euros. In the third quarter, the sector decreased by 12% compared to the same period last year, mainly due to the decline in visitor flow and the group's cautious policy toward department stores.

Eraldo Poletto pointed out that in order to avoid the impact of department stores' excessive promotion on brand image, it is imperative to adopt a cautious shipping policy for department stores.

By region, European sales decreased by 5% to 276 million 600 thousand euros, mainly due to a significant reduction in passenger traffic due to safety problems.

But in the third quarter, sales in the retail sector declined narrower to 6% in the two quarter.

The turnover in North America increased by 3.2% to 242 million 200 thousand euros, accounting for 23.9% of total sales.

Sales in the Asia Pacific region increased by 0.3% to 360 million euros from the same period last year, accounting for 35.5% of total sales.

The region's performance improved in the third quarter, up 10% from the same period last year.

Although Hongkong's performance is still deteriorating, the retail sector revenue in mainland China has increased by 3% over the past 9 months at a constant exchange rate, and the growth rate in the third quarter has further expanded to 11%.

Japanese market sales fell by 1.6% to 93 million euros compared with the previous year, and the number of tourists, especially Chinese tourists, has decreased significantly since the yen strengthened.

Sales in central and South America increased 3.6% to 51 million 100 thousand euros compared with the same period last year.

According to the category, footwear sales increased by 1% to 438 million euros, accounting for 43.2% of total sales.

For analysts' query, Eraldo Poletto acknowledged that footwear performance was basically flat, but still the top priority of group development.

He also revealed that the group would hire a new leather product and men's clothing designer, but did not mention specific names.

The performance of handbags and leather accessories fell 1.2% to 370 million euros, or 36.7% of total sales, compared with the same period last year.

Although the perfume category recorded 3.1% decline in 9 months, it recorded an increase of 3% in the third quarter.

Clothing category continued to decline, down 3.3% to 62 million 400 thousand euros.

According to the current market situation, the company proposes "prudent forecast of year-end results".

In terms of pricing, Eraldo Poletto also stressed that there will be no change in the short term. At this stage, the group is mainly committed to R & D and streamline product categories. In the first three quarters of this year, the group's operating cost increased by 2% to 509 million euros, which was affected by the related expenses generated by management changes, and the group's operating cost increased by 7% in the third quarter, but the company did not disclose the amount of compensation paid by the CEO Michele Norsa.

By the end of September this year, the Group invested 46 million euros in the development of new stores and renovation and renovation of existing stores, compared with 56 million euros in the same period last year.

Eraldo Poletto introduced during the conference call, its goal is to strive to make the brand more modern, and give priority to the development of retail business, so that sales can be more customer focused and improve sales efficiency.