Salvatore Ferragamo reports stable revenue and margins for the nine months 2016
In 3Q 2016 Revenue totalled 304 million Euros, up 1.7% vs. 3Q 2015 at current exchange rates and down 6.2% at constant exchange rates with a different trend between Retail and Wholesale Business. In particular, at constant exchange rates, the retail business was stable (+0.1%) in 3Q 2016 (-3.2% in 1H 2016), while wholesale registered a decrease of 18.6% (-3.0% in 1H 2016)
Europe posted a decrease in Revenues of 5% compared to 9M 2015, also due to lower tourist flows, negatively impacted by the dramatic events. 3Q 2016 saw an improvement of the retail business, down 6% (vs. -11% in 1H 2016), while wholesale decreased 12% (vs. +3% in 1H 2016).
North America recorded Revenues up by 3% (-4% at constant exchange rates) in the first nine months of 2016. The retail business, despite the strong USD that negatively impacted tourist flows in the United States, reported sales up 11% in 9M 2016, while the wholesale business was down 8%.
The Asia Pacific area saw stable Revenues vs. 9M 2015, with an improvement in 3Q 2016 (+10%). At constant exchange rates2 Revenues were down 4% in 9M 2016 and 3% in 3Q.
The business in Hong Kong remained negative, even if less negative than in the past. In particular, in 3Q 2016, the retail business registered a decrease of 15% at constant exchange rates2 (-24% in 1H 2016). The retail channel in China recorded Revenues up 3% at constant exchange rates in 9M 2016, with an acceleration in 3Q 2016 (+11% vs. 3Q 2015).
The Japanese market registered Revenues down 2% (-9% at constant exchange rates2) in 9M 2016, due to the lower Chinese tourist flow (impacted by the significant appreciation of the Yen vs. the Renminbi). In 3Q 2016 Revenues saw a hard comparison base (+25% at constant exchange rates2 in 3Q 2015 vs 3Q 2014) and registered a decreased of 8% (-17% at constant exchange rates).
The Central and South America area in 9M 2016 continued its solid growth, despite the penalization of the currencies, reporting Revenues up by 4% at current exchange rates and by 13% at constant exchange rates. In 3Q 2016 Revenues were up 10% (+15% at constant exchange rates4).
As of 30 September 2016, the Group’s network totalled 673 points of sale including 396 Directly Operated Stores (DOS).
In 9M 2016 the Retail distribution channel posted consolidated Revenues up 1% (-2% at constant exchange rates and -6% at constant perimeter – like for like), with an improving performance in 3Q 2016 (+9% at current exchange rates and stable at constant exchange rates)
The Wholesale channel registered a decrease in Revenues of 4% (-7% at constant exchange rates4) vs. 9M 2015. In 3Q 2016 Revenues decreased by 12% (-19% at constant exchange rates4) mainly impacted by lower tourists’ flows and the cautious policy towards Department Stores.
In 9M 2016 the Gross Profit increased 1% at 679 million Euros, with an incidence on Revenues up by 120 basis points to 67.0%, from 65.8% recorded in 9M 2015.
The Gross Operating Profit (EBITDA) decreased by 0.7% over the period, from 218 million Euros of 9M 2015 to 216 million Euros, with an incidence on Revenues stable at 21.3%.
The Operating Profit (EBIT), over the period, decreased by 2% to 170 million Euros, with an incidence on Revenues of 16.8%, from 17.0% in 9M 2015.
The Profit before taxes in 9M 2016 was down 4% at 158 million Euros, from 164 million Euros in 9M 2015, and its incidence on Revenues was 15.6% vs. 16.1% in 9M 2015.
The Net Profit for the period, including the negative Minority Interest of 2 million Euros, was 110 million Euros, down 3% vs. 9M 2015. The Group Net Profit reached 112 million Euros, stable vs. 9M 2015.