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Ferragamo FY17 Revenues Drop 3.1 Percent

The Salvatore Ferragamo Group, in its preliminary results statement for fiscal yr 2017 said that whole consolidated revenue amounted to 1,393 million euros (1,728.9 million dollars), down three.1 p.c at present trade and 1.Four p.c at constant trade rates in opposition to FY16. Revenues in the fourth quarter, the company stated, registered a lower of 8.4 % or 5.1 % at constant trade, penalized by the currencies development and by the decrease incidence of promotional sales in the first channel in opposition to final yr.

As of December 31, 2017, the group’s retail community consisted of 685 factors of gross sales, including 410 directly operated salvatore ferragamo flats zappos stores (DOS) and 275 third party operated shops (TPOS) within the wholesale and journey retail channel, as properly because the presence in department stores and multi-brand specialty stores. In FY17 the retail distribution channel posted 0.Eight percent decline in consolidated revenues however revenues rose 1.3 % at fixed exchange charges, with a lower of 1.7 % at constant trade charges and like-for-like sales. The wholesale channel, the company added, penalized by the destocking exercise, the political tensions in South Korea and the strategic rationalization in Japan, registered a lower in revenues of 7.4 p.c at current exchange and 6.2 % at constant alternate rates.

Geographical evaluation of Ferragamo’s results
The corporate mentioned, Asia Pacific area is confirmed as the group’s top market by way of revenues, lowering by 2.1 p.c or zero.4 p.c at fixed exchange rates, penalized by the mushy development in South Korea, mostly because of the numerous decrease of Chinese language vacationers, and the on-going unfavourable performance in Hong Kong. Nevertheless the retail channel in China reported a 2.5 % or 7 percent revenue development in FY17.

Ferragamo Flats LeopardRevenues in Europe decreased 3.6 percent or three p.c at constant change rates, with a constructive performance for the retail channel and a unfavorable pattern for the wholesale enterprise, negatively impacted by the destocking exercise. North America recorded a income lower of four.2 percent or 2.2 % at constant change rates, additionally negatively impacted by the department stores gross sales. The Japanese market registered a 5.6 p.c or 3.1 p.c lower at fixed alternate rates, because of rationalization of the wholesale channel, whereas the retail stores recorded a positive performance at constant alternate rates. Revenues in the Central and South America grew by 2 p.c or 6.5 percent at fixed exchange charges.

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