Ferragamo’s Working Revenue Down 44% as It Works to Revive Gross sales

Working revenue at Salvatore Ferragamo nearly halved final 12 months from 2022, weighed down by investments the Italian luxurious items group sustained as a part of efforts to reverse a drop in gross sales.

The family-controlled luxurious shoemaker is searching for to revive its fortunes, and adapt to fast-changing consumers’ tastes, underneath former Burberry chief government Marco Gobbetti, who took over in 2022.

Earnings earlier than curiosity and tax got here in at 72 million euros ($79 million), the group mentioned on Wednesday, down from 128 million euros a 12 months earlier although forward of forecasts.

Analysts anticipated 2023 EBIT to drop to 63 million euros, based on a median LSEG consensus forecast.

The corporate reported in January an 8.1 p.c drop in gross sales, prompting CEO Gobbetti to warn that hitting turnaround objectives might take longer than anticipated.

Working prices declined barely, however grew as proportion of revenues, because the group “continued to take a position, as deliberate, in advertising and marketing and communication.”

Gobbetti confirmed in an announcement that “the present market backdrop” affected “the timing of our preliminary assumptions.”

Nonetheless, “we proceed to pursue our progress ambition, whereas additionally defending profitability via ongoing consideration to the standard of gross sales and disciplined deal with prices,” he mentioned.

Ferragamo mentioned it was slicing its proposed dividend to 0.10 euros per share from 0.28 euros the earlier 12 months.

By Elisa Anzolin Modifying by Keith Weir and Valentina Za

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Ferragamo CEO Warns Turnaround Might Take Longer After 2023 Gross sales Drop

Gross sales at Italian luxurious items group Salvatore Ferragamo dropped by 8.1 p.c at fixed currencies final 12 months, prompting chief government Marco Gobbetti to warn that hitting turnaround objectives might take longer than anticipated.