Double digit growth for Ferragamo for Q1 2015
Salvatore Ferragamo reports first quarter revenue increase of 10% totalling 327 million euros. Operating profit (EBIT) was up 12% (47 million euros) and group net profit jumped 20% (31 million euros) vs. 2014. Gross Operating Profit (EBITDA) was 61 million Euros (+16% vs. 53 million Euros at 31 March 2014).
Net Profit increased by 17% to 32 million Euros (vs. 27 million Euros at 31 March 2014), including 1 million Euros of Minority Interest. The Profit before taxes in 1Q 2015 increased to 44 million Euros (+11%), from 40 million Euros in 1Q 2014, and its incidence on Revenues was 13.5% vs. 13.4% in 1Q 2014.
The Asia Pacific area is confirmed as the Group’s top market in terms of Revenues, increasing by 11% (stable at constant exchange rates) vs. 1Q 2014. A significant contribution came from the retail channel in China, which recorded a Revenue growth of 22% in the first three months of 2015 (+9% at constant exchange rates).
Europe posted an increase in Revenues of 2% (+1% at constant exchange rates) compared to 1Q 2014, with a double-digit growth of the retail channel, while the wholesale business, negatively impacted by the geopolitical tensions, saw a contraction in turnover.
North America, despite the unfavourable weather conditions, recorded a Revenue increase of 16% (+3% at constant exchange rates) in the first three months of 2015.
The Japanese market registered a 5% growth (+6% at constant exchange rates) in 1Q 2015, despite the challenging comparison base. Revenues in the Central and South America in 1Q 2015 continued the double-digit growth, posting an increase of 28% (+19% at constant exchange rates).
As of 31 March 2015, the Group’s Retail network could count on 375 Directly Operated Stores (DOS), while the Wholesale and Travel Retail channel included 262 Third Party Operated Stores (TPOS), as well as the presence in Department Stores and high-level multi-brand Specialty Stores.
All the product categories, with the only exception of fragrances, registered an increase in Revenues in 1Q 2015. It is especially worth highlighting the increase of handbags and leather accessories, that posted an increase of 16% (+8% at constant exchange rates). The performance of fragrances (-11%) was penalized by the unstable situation in Eastern Europe and by a different delivery calendar vs. the same period of last year.