Ferragamo Financial Report in the first half of the year: sales fell by 46.6% year-on-year, footwear and Asian markets have become a core growth momentum
Source: Huaying Zhi
Tuesday, Italian luxury brands
(Salvato Firagamo, hereinafter referred to as Ferragamo) announced the key financial data (as of June 30). Affected by the blockade measures under the new championship, Ferragamo sales fell by 46.6% year-on-year, net loss of 86 million euros.
But Ferragamo Deputy Executive Chairman Michele Norsa said that the brand’s core shoes and the Asian market is full of confidence. He said: “We need to have vision and mission, Salvatore Ferragamo has potential to become women’s shoes and men’s shoes leaders. Erragamo has special status in consumer’s heart, especially in Asia.” He believes relative to some competitors, Ferragamo in Asia There is a “huge advantage” in the market.
Michele Norsa is the former CEO of Ferragamo, which returned to this headquarters in Florence. Michele Norsa said he “very happy” returned to herself for 10 years, the company left by 2016, he replied with the analyst’s meeting on the company.
He said: “(the year) is mainly due to the personal reasons, because my wife is sick, but the work is the best dehydrate, I have had an important experience for the board of directors, which is very useful, I have a lot of information. I often travel, I think I have more experience now. (Founding family members) Ferruccio ferragamo is unexpected to me, but I immediately promised, I found a balance between other characters, I With enthusiasm and joy. I found a great team, I can give important external opinions here. “
Michele Norsa recognizes pressure and uncertainty. He said that a series of priority strategies have been developed, such as long-term financing credits with a maximum amount of 250 million euros. According to reports, this loan is related to Ferragamo’s sustainable development goals, which will allow brands to have a breath and investment in the next five years.
He said: “We have implemented significant measures to streamline institutions and reduce costs, and we need employees (according to) Double Trinc PRINCIPLE to take more responsibility.”
He said that “the results are very satisfied”, he said: “This will help us have saved costs in 2021. We are facing an extremely turbulent market and unpredictable environment, but we have the opportunity to achieve future growth, and Change our distribution channel. “
For example, Michele Norsa believes that there is a chance to invest in mainland China and improve the sense of brand. He mentioned that China’s mainland has been open to China Macau, Hong Kong, Thailand, Cambodia, and other places. He added: “Direct flight flying to Canada and Denmark has also been restored.”
The Asia-Pacific region has long been the main market of Ferragamo, and 44.3% of total sales have been contributed in the first half of the year. Ferragamo said that China’s retail channels have resumed vitality in the second quarter, and Ferragamo’s China sales increased by 11.6% compared to the South Korea market.
At the same time, he said that it is carefully studying Mexico, Taiwan, Russia and the Middle East. He pointed out that the brand has a powerful reputation in Mexico and Taiwan, and is positioned well.
Michele Norsa is still closely paying attention to the US market. He said: “The wholesale market here has currently improved trends, because (Ferragamo) provides more selective solutions for department stores” and better opportunities. He said that the United States performance “Good and bad”, New York and other regions of Manhaset, Miami and Beverly Mountains are good, but he does not deny that the recent “social turmoil” belongs. Negative impact.
Ferragamo CEO Micaela Le DiveLec Lemmi also introduces other measures taken in addition to cash credit. She said that although there is uncertainty, these measures will help maximize the impact of the epidemic on the 2020. She said: “In order to protect the brand and wholesale market, we reduce too much inventory and voluntarily cut the management’s salary.”
FERRAGAMO is also a layout of rationally, Micaela Le DiveLec Lemmi will be relocated in a store located in Guangdong Road, Hong Kong, China, will be relocated in Hong Kong, China, and may close some stores in Europe and reduce tourism retail business.
Micaela Le Divelec Lemmi said: “We have a solid growth foundation, planning to open 5 new stores in China, and use the fast flash shop to attract customers.” She also emphasized Ferragamo in digital platform, communication and all channel services. Introduction. She said: “We will not change the priority.”
As of June 30, Ferragamo has 643 sales outlets in the world, including 389 direct camps.
Ferragamo key financial data as follows:
Sales fell by 46.6% year-on-year to 377 million euros, the same period last year was 705 million euros.
The business loss is 74 million euros, and the same period of business profit last year is 94 million euros.
Net lost 86 million euros, earnings 60 million euros last year.
The old margin of interest tax (EBITDA) fell 83.9% to 30 million euros from 184 million euros last year.
Thanks to the cost control, renegotting the rent and streamlining organizational architecture, operating costs fell by 17.2% to 300 million euros year-on-year; capital expenditure fell 56.7% to 11 million euros.
According to channels
Retail channel: sales fell by 41% year-on-year to 260.6 million euros, accounting for 69.2% of total sales
Wholesale channels: sales fell by 56.4% to 10,000 million euros a year-on-year, mainly subject to the poor tourism retail business in the second quarter and dragged down the perfume sector
According to regions
Asia Pacific (outside Japan): sales fell by 39.9% year-on-year to 1667 million euros
Japan: Sales fell by 37.4% to 36.9 million euros year-on-year, of which 56.1% fell by 56.1% in the second quarter.
Europe, Middle East and Africa (EMEA): Sales fell by 51.7% to 85.8 million euros year-on-year
North America: Sales fell by 54.4% to 69.7 million euros year-on-year, of which 81.1% fell in the second quarter.
Central South America: Sales fell 54.6% to 1.74 million euros year-on-year
According to the department
Shoes: sales fell by 46.4% year-on-year to 1595 million euros, accounting for 42.4% of total sales
Leather & Handbag: Sales fell by 43.6% to 1586 million euros year-on-year, accounting for 42.1% of total sales
Equipment: sales fell by 47.3% to 19.1 million, accounting for 5.1% of total sales
Accessories: Sales fell from 49.1% to 20.3 million euros year-on-year, accounting for 5.4% of total sales
Perfume: sales fell by 66.3% to 14.1 million euros year-on-year, accounting for 3.7% of total sales, affected by global epidemic blocking measures, new product release was forced to postpone