Ferragamo third-quarter revenue falls as wholesale drops

Ferragamo Q3 Revenue Drops 3.5% as Wholesale Sales Fall 19.1% Year-Over-Year

Ferragamo Q3 2023 Financial Performance Overview

Revenue and Sales Highlights

Oct 20 (Reuters) - Revenues at Italian luxury group Ferragamo fell 3.5% at constant exchange rates in the third quarter as wholesale sales dropped 19.1% from a year earlier, ​the company said on Tuesday.

"The market backdrop remained particularly challenging during the third quarter, impacted by ongoing geopolitical tensions and a generally subdued consumer environment over the summer," Ferragamo said a statement.

Key Financial Figures

• Revenues totaled €207 million ($232.61 million), slightly below an ​Equita-cited consensus of €209.6 million

Regional Sales Performance

• Net sales were down 5.2% in the EMEA region and 11.1% in the Asia Pacific, while in North America the figure was up 2.4% at constant exchange rates.

Wholesale and Direct-to-Consumer Channels

• Wholesale sales dropped 19.1% in the third quarter, while direct-to-consumer (DTC) channel remained flat.
• The drop ​in wholesale sales reflects the company's decision ​to focus on DTC ​and key accounts, the company said, confirming an established trend.
• DTC channel accounted for 79.5% of ​total sales as of September 30.

Currency Exchange Rate

($1 = 0.8899 euros)

Reporting Credits

(Reporting by Mirko Miorelli; Editing by Shailesh Kuber)