Challenging Environment Places Pressure on Ferragamo’s H1 Performance
Ferragamo’s first-half 2021 performance faced setbacks due to a tough consumer environment in Asia Pacific and a weak wholesale channel. Despite these challenges, CEO Marco Gobbetti expressed optimism, noting strong sales from new shoe and handbag collections, particularly the Zina ballet flats and Hug handbags.
Revenue dropped 12.8% to 523.1 million euros, with a second-quarter decline of 8.1% due to a sluggish Asian market and wholesale environment. Net profit fell to 6 million euros from 21 million euros the previous year.
Gobbetti emphasized strategic adjustments to enhance top-line performance and profitability, focusing on expanding the audience and boosting engagement through refreshed products and a new store concept. Despite a 17% sales drop in Asia Pacific and a 5.5% decline in North America, the Japanese market showed a 9.8% increase in the second quarter. Footwear sales fell 10.5%, leather goods 13.3%, and apparel 21.9%. The company plans increased capital expenditure in the second half of the year to refresh its retail network.