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Ferragamo Earnings Grow 50 Percent in ’93

MILAN -- Salvatore Ferragamo reported Tuesday that 1993 revenues jumped 50 percent, to $214.5 million (351 billion lire) at current exchange rates.<BR><BR>The Florence-based luxury goods firm cited growth in all of its businesses, from shoes to...

MILAN — Salvatore Ferragamo reported Tuesday that 1993 revenues jumped 50 percent, to $214.5 million (351 billion lire) at current exchange rates.

The Florence-based luxury goods firm cited growth in all of its businesses, from shoes to accessories and ready-to-wear. In 1992, the firm’s revenues came to 234 billion lire.

The results, according to Ferruccio Ferragamo, chief executive officer and managing director, “show that even in times of recession, the consumer turns to that product that has an intrinsic value.”

Ferragamo also said the favorable exchange rate helped boost the firm’s annual revenues, noting that the devaluation of the lira in September 1992 improved the competitiveness of Italian products on foreign markets. He declined to release profit figures, saying it wasn’t company policy.

For 1994, Ferragamo predicted that sales, based on data so far, would be up 28 percent, to about $275 million (450 billion lire).

Ferragamo produces shoes, bags, women’s and men’s apparel, scarves, ties and other accessories. Footwear remains the core of the company, last year accounting for 59 percent of its total business; women’s accounted for 47 percent and men’s, 12 percent.

Bags and small leather goods represented 15 percent of total sales; women’s rtw, 13 percent and men’s wear, 3 percent. Ties, scarves and gift items accounted for the remaining 10 percent, Ferragamo said.

Some 70 percent of sales comes from wholesale clients and 30 percent from Ferragamo’s 28 company-owned stores. Geographically, Ferragamo’s sales are derived 53 percent from North America, 25 percent from Europe, 15 percent from Asia and 7 percent from duty-free shops.

Looking ahead, Ferragamo plans new stores in April in Shanghai, Sydney, and Surfers Paradise on Australia’s Gold Coast, and in May in Dubai and Abu Dhabi, United Arab Emirates, and in Riyadh, Saudi Arabia.

In New York, the firm plans two stores — a women’s and a men’s — on the ground floor of Trump Tower. They are slated to open in June, when Ferragamo’s two existing boutiques on Fifth Avenue will close.

A boutique is also planned in Jiddah, Saudi Arabia, in September.

Ferragamo opened a boutique in Deauville in February and one in Lyon this month, for a total of five stores in France.