Region-wise performance of Europe's leading fashion firms in Q1 FY24

Europe's leading fashion firms have reported varied financial performances for the first quarter of fiscal 2024 (Q1 FY24), reflecting a complex global market landscape. While some companies experienced significant growth in certain regions, others faced notable declines.

Hugo Boss

Hugo Boss reported strong sales performance in Q1 FY24, particularly in the Americas, where currency-adjusted revenues surged by 11 per cent, driven by a substantial increase in the US market. In the Europe, Middle East, and Africa (EMEA) region, sales grew by 5 per cent, with notable contributions from Germany and emerging markets. The Asia-Pacific region saw modest growth of 4 per cent, with Southeast Asia and the Pacific achieving double-digit growth, although sales in China lagged behind the previous year.

Salvatore Ferragamo

Salvatore Ferragamo faced challenges in several regions. The Europe, Middle East, and Africa (EMEA) region saw a 30.8 per cent decrease in net sales, or 31 per cent at constant exchange rates, compared to a strong previous year. Despite a 3.5 per cent increase in direct-to-consumer (DTC) performance at constant exchange rates, the wholesale channel experienced a significant drop of 51.3 per cent at constant exchange rates due to an overall weak market and timing differences in deliveries.

In North America, net sales were down 10.9 per cent, or 9.2 per cent at constant exchange rates, primarily due to a double-digit decline in wholesale performance. Central and South America recorded an 8.6 per cent decrease in total net sales, or 11 per cent at constant exchange rates. The Asia Pacific region faced a 19.3 per cent decrease in net sales, or 15.5 per cent at constant exchange rates, with Greater China and Korea particularly affected by weak consumer sentiment. Conversely, the rest of the Asia Pacific benefitted from increased travel, leading to positive results. The Japanese market also reported a decline in net sales of 15.7 per cent, or 4.4 per cent at constant exchange rates, despite improvements in the DTC trend during February and March.

Hermès International

Hermès International reported robust performance across all geographical areas, continuing its network expansion through new store openings and extensions. Asia, excluding Japan, saw a 14 per cent increase in sales, reflecting broad growth across the region. Japan experienced an impressive 25 per cent growth, while the Americas, buoyed by strong momentum in the US, posted a 12 per cent increase. Europe also showed solid performance, with France and the rest of Europe excluding France growing by 14 per cent and 15 per cent, respectively.

Prada

Prada demonstrated resilience in Q1 FY24, particularly in the Asia Pacific region, which showed a 16 per cent growth. This performance is impressive given the high comparative bar set by the lifting of COVID-19 restrictions in the same quarter last year. Europe also reported robust growth, with an 18 per cent increase in revenues, fuelled by spending from both locals and tourists. The Americas region saw a modest improvement with a 5 per cent growth, slightly up from the last quarter of FY23. Japan outpaced all regions with a 46 per cent year-on-year (YoY) increase in revenue, driven primarily by strong local consumption and a growing influx of tourists. The Middle East maintained solid growth momentum, with revenues increasing by 15 per cent YoY.

Brunello Cucinelli

Brunello Cucinelli reported notable positive performance across different regions. In Europe, revenues rose to €108.8 million (approximately $116.7 million), a 13.9 per cent increase from the first quarter of the previous year, accounting for 35.2 per cent of the total revenues. The Americas region reported even higher growth, with sales up 19.5 per cent to €114.2 million (approximately $122.4 million), making up 36.9 per cent of the total sales. Asia reported revenues of €86.1 million (approximately $92.3 million), a 16 per cent increase over the same period last year, representing 27.9 per cent of total revenues.

Fibre2Fashion News Desk (DP)