Salvatore Ferragamo reports 6% revenue growth in the first quarter
Salvatore Ferragamo Groupreports a 6% growth in revenue for the first quarter of 2014 reaching a total of 299 million euros, over the 282 million Euros recorded in 1Q 2013. Revenue growth at constant exchange rates has been over 7%. The Group Net Profit reached 26 million Euros in Q1 2014, compared to 24 million Euros in Q1 2013, marking an increase of 7%.
The Asia Pacific area has been the best performing market for the group terms of revenues,which increased by 6% in Q1 2014, with a significant contribution from the retail channel in China, that recorded a revenue growth of over 10%in the first three months of the year.
Despite the geopolitical tensions which negatively impacted the global tourist flows, Europe posted an increase in revenues of 9% of Q1 2014. North America, strongly impacted by the unfavourable weather conditions, recorded a Revenue increase of just 2% in the first three months of 2014. The Japanese market registered a double-digit growth in Q1 2014, increasing by 18%. Revenues in the Central and South America marked an increase of 17% in 1Q 2014.
As of 31 March 2014, Salvatore Ferragamo’s retail network included 356 directly operated stores, while the wholesale and travel Retail channel included 264 third party operated stores, as well as presence in Department Stores.
As for product categories, sales of handbags and leather accessories registered a 17% growth, footwear (+6%) wihile fragrances sales dropped by 2%.
Gross Operating Profit (EBITDA) increased by 10% over the period, reaching 53 million Euros, from 48 million Euros of 1Q 2013, with an incidence on Revenues improving to 17.7%, from17.0%in 1Q 2013.