In contrast to Tod’s, which has been purposely reducing its exposure to wholesale clients (see the related story in this issue), Salvatore Ferragamo performed better at wholesale than in its own retail stores last year, except in Europe and China. 

Without providing profit figures at this stage, the Italian company said its full-year revenues grew by 2.3 percent to €1,377 million, with currency-neutral sales up by 1.3 percent. In the fourth quarter, the top line was up by 2.1 percent at current exchange rates but slipped by 0.1 at constant currency rates. 

The company’s wholesale revenues increased by 3.1 percent to €461.4 million in the past financial year, or by 3.0 percent in local currencies, with fourth-quarter sales up by 2.6 percent at constant currency rates. 

Its retail sales grew by 2.4 percent year-on-year to €899.5 million, or by 1.1 percent at constant currency rates. In the final quarter, retail sales were up by 2.0 percent on a reported basis and fell by 1.0 percent at constant exchange rates. Comparable sales went up by 1.1 percent in the full year and by 0.2 percent in the fourth quarter. 

At the end of December, Ferragamo had a network of 654 mono-brand stores, down from 672 at the end of 2018. The number of directly-operated stores (DOS) totaled 393, down from 409. A further 261 points of sale were run by third parties (TPOS), compared with 263 at the end of 2018. 

By region, Ferragamo’s overall revenues in Europe, the Middle East and Africa (EMEA) grew by 5.3 percent to €347.2 million. In local currencies, they rose by 5.1 percent, lifted by a 9.4 percent surge in the fourth quarter driven by double-digit growth rate in the retail channel. 

In North America, annual revenues increased by 0.7 percent to €317.9 million, but fell by 0.6 percent on a currency-neutral basis despite a 2.2 percent increase in the fourth quarter. 

In Asia-Pacific, excluding Japan, the top line rose by 1.1 percent to €511.3 million, driven by a 13.8 percent increase in the Chinese retail channel. At constant currency rates, the region’s top line rose by 0.7 percent, with Chinese retail sales up by 12.6 percent. In the fourth quarter, retail sales in Hong Kong were more than halved year-on-year due to social unrest. 

In Japan, Ferragamo’s sales dropped by 0.5 percent to €118.5 million. In yen, the annual decline reached 2.8 percent, with fourth-quarter sales down by 9.5 percent due to an increase on Oct. 1 of the consumption tax to 10 percent from 8 percent. 

Sales jumped by 7.1 percent to €82.4 million in Latin America, rising by 4.6 percent on a currency-neutral basis. 

Globally, the brand’s footwear sales were up by 3.8 percent to €575.6 million, with a 3.0 increase in constant currencies. Leathergoods and handbags grew by 3.7 percent at current exchange rates to €540.8 million, and advanced by 2.8 percent in local currencies. Shoes and leathergoods increased their combined share of total sales to 81.1 percent from 79.9 percent a year earlier.