Salvatore Ferragamo revenues increase as Europe shines

Italian luxury label Salvatore Ferragamo has reported a 17.2 percent increase in revenue in the first nine months of the year as strong sales in Europe offset a weak performance in China.

The Florence-based brand made revenue of 921 million euros in the period, up from 785 million euros a year earlier. At constant exchange rates, revenue increased 12.7 percent.

Breaking it down by geography, net sales in Europe surged 37.3 percent to 202.1 million euros, while North America sales jumped 29.6 percent to 276.7, as the markets benefited from shoppers returning to physical stores following the end of lockdown restrictions.

Sales in Central and South America were also up 37 percent to 60.7 million euros, and sales in Japan increased 19.9 percent to 72.8 million euros.

China hit by Covid restrictions

On a less bright note, sales in Asia Pacific only grew 2.1 percent to 315.7 million euros. On a constant currency basis, sales were down 5.4 percent.

That came as China - a particularly important market for luxury brands - continued to be impacted by Covid restrictions.

Salvatore Ferragamo made a net profit for the nine months of 67 million euros, compared to 40 million euros the prior year.

Chief executive Marco Gobbetti was upbeat about the results, noting the increased revenue across all distribution channels.

He said: “I am particularly pleased with the impact of our SS23 collections and Fashion Show. Their success adds further confidence in the acceleration of investment in the second half of the year as we build strength in our capabilities to support our growth agenda.”