MILAN — Boosted by growth in all geographic markets and gains in the footwear and leather goods categories, Salvatore Ferragamo SpA registered an 8.1 percent increase in net profits to 84.7 million euros, or $108.4 million, in the first nine months of the year. This includes a minority interest profit of 15 million euros, or $19.2 million.
In the period ended Sept. 30, revenues climbed 18.7 percent to 832.6 million euros, or $1.06 billion, compared with 701.3 million euros, or $981.8 million, in the same period last year.
Dollar amounts have been converted at average exchange rates for the periods to which they refer.
“Consumer behavior has been changing in recent weeks, but the luxury industry is very resilient,” said chief executive officer Michele Norsa in a conference call with analysts. “We are well-positioned to capture consumer trends.”
The Asia-Pacific area was the group’s top market, showing 19.5 percent growth and accounting for 35.6 percent of total sales. Retail growth in Mainland China increased more than 30 percent, but Norsa conceded “China has been inconsistent in recent weeks,” with a “relatively slow” third quarter, which showed a 6.1 percent gain.
Japan was up 9.2 percent and revenues in Central and South America climbed 29.4 percent. Norsa said Latin America and Australia are becoming “more and more important” markets, where local consumption is growing, as well as tourist flows.
Sales in Europe grew 22.6 percent, “far beyond expectations,” said Norsa. The U.S. was up 16.8 percent and the executive described the mood there as “positive.” He said the company still did not have data regarding the impact of Hurricane Sandy, which forced stores to close for two or three days, but “did not damage the units, infrastructure or logistics.”
Retail sales in the nine months grew 15.3 percent to 532.5 million euros, or $681.6 million, while the wholesale and travel retail channel showed a 25.7 percent increase, to 286.6 million euros, or $366.8 million.
By category, footwear sales gained 20.6 percent and handbags and leather accessories were up 19.6 percent, accounting together for about 75 percent of sales. Fragrances grew 23.6 percent, boosted by the successful launch of the new women’s fragrance Signorina.
Operating costs grew 18.8 percent, including a 40.3 percent increase in communication expenses such as sponsorship of the exhibition “Saint Anne – Leonardo Da Vinci’s Ultimate Masterpiece” and the resort collection fashion show at the Louvre Museum in Paris.
Capital expenditures rose 55.7 percent to 36.5 million euros, or $46.7 million, mainly driven by stores openings, the enlargement and refurbishment of existing ones, in addition to logistics enhancements and digital projects. Ten new locations, of which five will be in China and units in Atlanta and Las Vegas airports, are coming up next.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty