MILAN — Ferragamo continues to execute its strategic initiatives, seeing growth in its direct-to-consumer channel, and in North America and Europe, partially offsetting a softer demand across Asia.
During a conference call with analysts on Tuesday, executive board member Ernesto Greco said, “The market backdrop remained particularly challenging during the third quarter, impacted by ongoing geopolitical tensions and a generally subdued consumer environment over the summer, with weaker sentiment slowing the positive momentum across several key markets and further deteriorating the trend in Asia, in particular in China.”
He touted “a gradual strengthening of the underlying business trends,” and despite persistent macroeconomic and geopolitical uncertainties, Greco said the group remains “confident in the relevance of its medium to long-term strategic direction.”
In the nine months ended Sept. 30, Ferragamo revenues declined 2.8 percent to 675 million euros, compared with 695 million euros a year earlier, reflecting the ongoing strategic rationalization of the wholesale channel.
Sales in the third quarter decreased 6.2 percent to 207 million euros. At constant exchange rates they were down 3.5 percent.
The DTC channel was up 1.9 percent to 537 million euros compared with 526 million euros. At constant exchange rates, the channel rose 4 percent.
Excluding China and Japan, all markets showed positive performance at constant exchange.
In the third quarter, the DTC channel was up 2.3 percent supported by the positive performance of full-price sales in the primary retail channel.
At constant exchange, the retail business was quite negative in July, then “flattish” in August, picking up positively in September and in October, said Greco.
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