Salem Radio Network News Tuesday, July 27, 2021

Business

Ferragamo’s sales jump in Q2, lag pre-COVID levels

MILAN (Reuters) -Italian luxury goods group Salvatore Ferragamo almost doubled sales in the second quarter after last year’s pandemic-led slump, with China, the Americas and Korea driving the rebound.

However, revenues are still far from pre-Covid levels and the Florentine brand is counting on the arrival of Burberry CEO Marco Gobbetti at the helm later this year to step up turnaround efforts that have so far struggled to yield results.

Ferragamo, which has been hit harder than most rivals by the fallout of the coronavirus crisis due to its exposure to travel spending, said on Tuesday first-half sales grew by 46.2% at constant exchange rates to 524 million euros ($617 million).

That is roughly a fifth below the level of January-June 2019, despite a 90.5% yearly jump in the second quarter alone.

Most luxury groups have already reached, if not exceeded, pre-COVID levels. But the pandemic hit Ferragamo just as the family-owned firm strived to rejuvenate a brand famous for the shoes worn by Hollywood stars such as Audrey Hepburn.

The task will now fall to Gobbetti, who is credited with relaunching Burberry by injecting fresh life into the British label.

Sales figures for the first half, which do not include the perfume business, are broadly in line with analyst expectations gathered by Reuters.

Ferragamo, which did not provide a breakdown of revenues for the second quarter, said online sales had performed well in he period rising 66%. ($1 = 0.8499 euros)

(Reporting by Claudia Cristoferi; editing by Valentina Za)

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