As of 31 March 2021 the Salvatore Ferragamo Group reported total revenues of 245 million Euros up by 10.3% at current exchange rates (+13.0% at constant exchange rates) vs. the 222 million Euros recorded in 1Q 2020.
The increase in revenues has been achieved despite the permanence, in some countries, of lock-downs of the commercial activities, bans and restrictions on international traffic, due to the Covid-19 pandemic.
As of 31 March 2021, the Group’s Retail network counted on a total of 638 points of sales, including 390 Directly Operated Stores (DOS) and 248 Third Party Operated Stores (TPOS) in theWholesale and Travel Retail channel, as well as the presence in Department Stores and high-level multi-brand Specialty Stores.
In 1Q 2021 the Retail distribution channel posted consolidated Revenues up 17.2% (+20.8% at constant exchange rates), showing a +14.7% at constant exchange rates and perimeter (like-for-like) vs. 1Q 2020, with the primary channel over-performing.
The Wholesale channel registered flat Revenues (-0.7% at current exchange rate and +0.3% at constant exchange rates), despite the persistent negative trend of the Travel Retail channel.
The Asia Pacific area is confirmed as the Group’s top market in terms of Revenues, increasing by 50.6% vs. 1Q 2020. In 1Q 2021 the retail channel in Greater China posted a Revenue growth of over 105% vs. 1Q 2020 at constant exchange rates2 and +6.1% vs. 1Q 2019. In particular, the retail channel in China posted an increase in Revenues of over 128% vs. 1Q 2020 at constant exchange rates, bringing the performance to +39.4% at constant exchange rates vs. 1Q 2019. The retail channel in Korea also posted a solid growth trend in 1Q 2021 (+33.7% vs. 1Q 2020 and +25.4% vs. 1Q 2019 at constant exchange rates).
The Japanese market in 1Q 2021 registered a decrease in Revenues of 9.3% (-6.5% at constant rates), penalized by the evolution of the pandemic and the consequent restrictions. Overall the Asian continent represents currently over 51% of total Group’s revenues.
EMEA posted a decrease in Revenues of 20.5% (-22.5% at constant exchange rates) vs. 1Q 2020, still strongly penalized by lock-downs of stores and by the lack of tourists’ flows in the period, due to the restrictions and bans imposed by the National Governments to limit the Covid-19 pandemic.
North America in 1Q 2021 recorded Revenues up by 9.9% vs. 1Q 2020. Revenues in the Central and South America in 1Q 2021 were down 20.1% vs. 1Q 2020, with a positive trend in all markets with the exception of Mexico, due to the continued lock-down.
All main product categories reported an increase in 1Q 2021 vs. the same period of last year.
In 1Q 2021 the Gross Profit increased by 20.6% vs. 1Q 2020 to 157 million Euros. Its incidence on Revenues was up 550 basis points, moving to 64.2%, from 58.7%, mainly thanks to the increase of full- price sales, to a positive geographical, channel and product mix and to lower provisions for obsolescence.
Gross Operating Profit (EBITDA1) amounted to 48 million Euros, from 12 million Euros of 1Q 2020, with an incidence on Revenues of 19.5% from 5.2%. The Operating Profit (EBIT) was positive for 7 million Euros vs. 36 million Euros negative in 1Q 2020.
The Profit before taxes in 1Q 2021 was positive for 3 million Euros vs. 48 million Euros negative in 1Q 2020. The Net Profit for the period, including the Minority Interest, was at break-even (-0.6 million Euros) vs. 41 million Euros negative in 1Q 2020. The 1Q 2021 Group Net Profit was negative for 1 million Euros vs. 39 million Euros negative in 1Q 2020.
Ferragamo Spring Summer 2021
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