Ferragamo CEO Warns Turnaround May Take Longer After 2023 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 govt Marco Gobbetti to warn that hitting turnaround objectives may take longer than anticipated.

Revenues reached €1.16 billion in 2023, a contact above the €1.15 billion estimated by analysts based on an LSEG consensus.

With a 17 p.c plunge in revenues, the North American area was the largest drag final 12 months, solely partly offset by a 3.4 p.c improve in revenues in Europe, Center East and Africa.

The Asia Pacific space noticed an 8.3 p.c drop in income at fixed trade charges.

Asia Pacific accounts for almost one third of group revenues, adopted by North America and Europe that are related in dimension at round 1 / 4 of the overall.

“The complicated market atmosphere with the slowdown of luxurious demand could impression the timing of our preliminary assumptions, nonetheless the dedication to our ambition is unchanged,” the CEO mentioned in a press release.

Shortly after becoming a member of two years in the past from Burberry, Gobbetti promised a fast turnaround of the Florentine group, aiming to succeed in virtually €2.3 billion in gross sales by 2026.

By Elisa Anzolin, enhancing by Gavin Jones and Valentina Za

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Ferragamo’s Sales Decline in First Half

Gross sales at Italian luxurious items group Salvatore Ferragamo declined by 7.2 p.c at fixed currencies within the first half, hit by double-digit drops in each North America and Asia Pacific, the corporate mentioned on Thursday.