Salvatore Ferragamo posts full-year profit growth

Salvatore Ferragamo

Italian luxury business Salvatore Ferragamo Group has seen its full-year profit jump 21% on the back of increased demand in Central and South America.

Net profit reached €125 million ($162 million) for the year to December 31, compared to €103 million the same period the year before.

At current exchange rates, total revenue increased 17% to €1.15 billion from €986 million the prior year, with significant growth in all geographical areas, product lines and distribution channels. Revenue was up 13% at constant exchange rates.

In North America, revenue rose 16% to €256.9 million, almost entirely achieved on a like-for-like basis, while revenues in Central and South America surged 27% to €52.2 million. Europe saw revenue increase 21% to €289.4 million.

Asia Pacific delivered a 17% increase in revenue to reach €420 million, representing 36% of the company’s total growth. The retail channel was a major contribution, which saw revenue rise 20%.

Meanwhile, Japan saw revenue climb 5% to €134.2 million.

By channel, the retail distribution channel saw revenue grow 14% to €753 million, while wholesale and travel retail posted 22% growth to reach €381 million.

“The business trend, recorded in the first months of the current year, justify expectations for growth also throughout 2013 both for revenue and net profit, in the absence of severely unfavorable market conditions,” the company said.

In addition, Salvatore Ferragamo has signed an agreement to dispose of its interest in the ZeFer joint venture with Ermenegildo Zegna and the Zegna footwear and leather goods brand. The deal will be effective from April 15.

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