In the first 9 months (9M) of FY24, the total revenues amounted to €744 million (~$810 million), down 9.8 per cent at constant exchange rates and down 11.9 per cent at current exchange rates vs 9M 2023. The company saw negative results due to the weak Asia Pacific market, secondary channel and wholesale environment, as per a press release by Salvatore Ferragamo.

By product category, in 9M FY24, overall net sales for footwear dropped 11.3 per cent year-on-year (YoY), with total sales of €336 million (~$365 million) in 2024, and at constant exchange rate it marked -10.2 per cent change YoY. Leather goods overall net sales hit €293 million (~$318 million) in 2024 marking a decline of 10.0 per cent YoY and drop of 8.6 per cent YoY at constant exchange rates. Apparel net sales of €42 million (~$45 million) decreased by 20.5 per cent YoY and -19.1 per cent at constant exchange rates, demonstrating a significant reduction in performance.

By distribution channel, the direct to consumer (DTC) channel posted a decrease in consolidated net sales of 5.7 per cent at constant exchange rates and -7.5 per cent in Q3 FY24 at current exchange rates vs Q3 2023. The overall performance of the DTC was negatively impacted by the secondary channel, mostly due to low traffic. In 9M 2024 the DTC was down 5.6 per cent at constant exchange rates and down 7.9 per cent at current exchange rates compared to 9M 2023.

By geographical area, in Q3 FY24, Europe, the Middle East and Africa (EMEA) saw an increase in net sales of 1.2 per cent at constant exchange rates and 0.6 per cent at current exchange rates, driven by the solid performance of the primary channel. In 9M 2024 net sales in EMEA decreased 11.5 per cent both at current and constant exchange rates, due to wholesale down 28.0 per cent (at constant exchange rates), also affected by the negative performance reported in Q1 reflecting the hard comparison base versus last year. Meanwhile DTC was up 4.5 per cent at constant exchange rates vs 9M 2023.

North America in Q3 2024 recorded a net sales decrease of 7.9 per cent at constant exchange rates and -7.4 per cent at current exchange rates, impacted by a negative secondary channel and wholesale performance, while the performance of the DTC primary channel, at constant exchange rates, was in line with last year. In 9M 2024 net sales in North America decreased 6.4 per cent at constant exchange rates and -6.1 per cent at current exchange rates vs 9M 2023.

Asia Pacific registered a decrease in net sales of 20.5 per cent at constant exchange rates and -20.9 per cent at current exchange rates in Q3 2024. In 9M 2024 net sales in Asia Pacific decreased 16.7 per cent at constant exchange rates and -18.1 per cent at current exchange rates vs 9M 2023.

Net Sales in Central and South America in Q3 2024 were up 9.0 per cent at constant exchange rates and down 8.2 per cent at current exchange rates vs Q3 2023, with primary DTC up double-digit, while secondary and wholesale were negative. In 9M 2024 net sales in Central and South America decreased 3.3 per cent at constant exchange rates and -7.3 per cent at current exchange rates vs 9M 2023.

The Japanese market in Q3 2024 registered an increase of 6.7 per cent at constant exchange rates (+3.4 per cent at current exchange rates), driven by the double-digit performance of the primary DTC channel, partly thanks to tourists flows. In 9M 2024 net sales in Japan increased by 3.9 per cent at constant exchange rates and were down 5.4 per cent at current exchange rates vs 9M 2023.

Considering persisting uncertainties over demand by luxury consumers, the company said that it foresees operating result for the full year to be at the lowest end of analysts’ current estimates.

Marco Gobbetti, chief executive officer (CEO) and general manager, commented: “The results of the third quarter have been impacted by the challenging macroeconomic and consumer environment and we expect this trend to continue in the last part of the year. Decreasing consumer confidence is most notable in Asia Pacific, being the main phenomenon impacting our sales performance. The secondary channel has also been affected by low traffic, which also continues to impact the wholesale environment.”

Fibre2Fashion News Desk (SG)