Ferragamo to revamp product offer, won’t give guidance for 2022

By Claudia Cristoferi

MILAN (Reuters) – The brand new boss of Salvatore Ferragamo goals to spice up gross sales by revitalising its product supply, although the Italian luxurious group stated the struggle in Ukraine and the lingering pandemic in some areas meant it couldn’t give an outlook for 2022.

Marco Gobbetti, who turned chief government of Ferragamo in January after 4-1/2 years at British rival Burberry, stated he deliberate to nominate a brand new artistic director to inject “power and newness” within the product vary.

“For positive development is for me the general precedence,” Gobbetti stated in his first convention name with analysts since he took the function, including he would give extra particulars on his technique in Might when Ferragamo reviews first-quarter outcomes.

The leather-based items maker, which has been and not using a artistic director since Might after parting methods with British designer Paul Andrew, swung again to revenue in 2021, posting earnings earlier than pursuits and taxes of 143 million euros ($156 million).

That was above an working revenue of 112 million euros anticipated on common by analysts. In January, Ferragamo had already reported an increase in gross sales of greater than 30% for final yr, although revenues had been nonetheless far under pre-pandemic ranges, underperforming most different luxurious teams, which have largely exceeded 2019 outcomes.

The COVID-19 pandemic hit arduous Ferragamo, extra uncovered than rivals to journey spending, simply because the family-owned agency strived to rejuvenate a model well-known for making sneakers for Hollywood stars reminiscent of Audrey Hepburn.

The group stated it “doesn’t deem applicable to offer steering for the present yr” because of the persistence of the pandemic in sure areas and the geopolitical implications of the battle in Ukraine, despite the fact that its direct publicity to Russia is lower than 1% of gross sales.

($1 = 0.9189 euros)

(Reporting by Claudia Cristoferi, modifying by Silvia Aloisi)

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