Italy's Ferragamo warns of slowdown after third-quarter sales slip
today Nov 12, 2019
Italian luxury group Salvatore Ferragamo posted a fall in third quarter revenues that dampened signs of recovery in the first half of the year and warned of further weakness ahead under the impact of unrest in Hong Kong and a weak U.S. market.
"The slowdown in revenues and operating margins reported in the third quarter 2019 may persist also in the last part of the year," the company warned on Tuesday. In July, the shoes and leather goods maker said it expected results in the second half of the year to be in line with the first half.
In the July-to-September period, total revenues fell by 3.6% at constant exchange rates and the closely watched like-for-like retail sales decreased by 0.7%, interrupting the growth posted in the previous six months after ten quarters of falls.
Higher costs linked to a turnaround plan launched to rejuvenate the historic brand, dented profits.
In the nine months, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) declined by 1.5% to 147 million euros (£126.6 million or $161.99 million) after they rose 2.1% in the first half of the year.
Revenues totalled 994 million euros in the nine months, with an increase at constant exchange rates of 1.9%.
Analysts had expected 994 million euros in sales and 139 million in Ebitda, according to a Reuters poll.
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