Salvatore Ferragamo post a net profit increase of 2,3% in the first half
As at 30 June 2016, Salvatore Ferragamo registered a slight decrease in Revenue and improving Margins: Six Months Revenue -1.7%, Gross Operating Profit (EBITDA) +0.9%, Operating Profit (EBIT) +0,0% and Group Net Profit +2.3% vs. 1H 2015
Ferragamo reports revenues of 710 million Euros (-1.7% vs. 722 million Euros at 30 June 2015) and Gross Operating Profit (EBITDA): 166 million Euros (+0.9% vs. 165 million Euros at 30 June 2015). Operating Profit (EBIT) was 136 million Euros (stable vs. 136 million Euros at 30 June 2015) Net Profit: 90 million Euros (+0.3% vs. 90 million Euros at 30 June 2015), including negative 0.1 million Euros of Minority Interest.
The Asia Pacific area saw decreasing Revenues by 4% both at current and constant exchange rates vs. 1H 2015, mainly due to the deterioration of the business in Hong Kong. The retail channel in China recorded Revenues up 1%, despite the challenging comparison base (+17% in 1H 2015), with an acceleration in 2Q 2016 (+7% vs. 2Q 2015).
Europe posted an decrease in Revenues of 3% compared to 1H 2015, also due to lower tourist flows, negatively impacted by the dramatic events. Also in 2Q 2016 Revenues decreased 3%, despite the harder comparison base (+13% in 2Q 2015).
North America recorded Revenues up by 2% (-3% at constant exchange rates) in the first six months of 2016. The retail business, despite the strong currency that negatively impacted tourist flows in the United States, reported sales up 6%, while the wholesale business was down 4%, also due to the challenging comparison base (+24% in 1H 2015). In 2Q 2016 Revenues increased by 3% (-2% at constant exchange rates).
The Japanese market registered a 2% growth (-5% at constant exchange rates) in 1H 2016, decelerating vs. the last months of 2015, due to the lower Chinese tourist flow (also impacted by the appreciation of the Yen vs. the Renminbi). ). In 2Q 2016 Revenues increased by 2% (-11% at constant exchange rates), with a hard comparison base (+12% in 2Q 2015).
The Central and South America area in 1H 2016 continued its solid growth, despite the penalization of the currency, reporting Revenues up by 1% at current exchange rates and by 12% at constant exchange rates
Among the product categories, shoes registered Revenues up by 1% in 1H 2016, while handbags and leather accessories down by 3% (vs. a hard comparison base, +16% in 1H 2015). Fragrances were down 6% in 1H 2016 and down 13% in 2Q 2016, also due to sales, expected in the second part of the year, of the new men’s fragrance.