MILAN — The year 2017 is one of transition for Salvatore Ferragamo SpA and 2018 will be one of “hard work,” Eraldo Poletto, chief executive officer of the Florence-based company, said Tuesday.“We have to be stronger, do what’s right, there are a lot of things happening — big changes — and we have to be in sync with the changes,” Poletto said in addressing analysts in a conference call as the group reported a 28.3 percent decrease in net profit, including a negative minority interest of 3 million euros, to 79 million euros in the first nine months of the year. This compares with 110 million euros in the same period last year.In the nine months, revenues decreased 0.9 percent to 1 billion euros, including a hedging effect, compared with 1.01 billion euros last year. At constant exchange rates, sales grew 0.2 percent. In the third quarter, sales were down 5.5 percent to 287 million euros, due to the negative impact of currencies. At constant exchange rates, sales were up 0.5 percent.Poletto spoke about making changes in the product offer, which follows the decision to appoint Paul Andrew, previously women’s footwear director, as women’s creative director in October, with Fulvio Rigoni leaving the company as a consequence. Asked about this reduced team, the executive said, "The idea is to have one aesthetic for women’s. Paul has shown amazing talent in identifying the Salvatore Ferragamo trends, codes, feelings and emotions. Someone is helping him with ready-to-wear and we are presenting the new collection tomorrow in Florence. We are very pleased, the team has done a miracle in a very short period. There will be no disruption. This is a natural evolution from the shoe to the head of a woman. We are excited about this.”Guillaume Meilland continues to helm men's wear.Poletto also emphasized the company’s investment in the leather-goods division, with the impact of a new designer, Francesca Murri, who joined in April and the hiring of 20 new employees “to go after the category, which is key” for Ferragamo, he said. “By the first or second quarter of 2018, we’ll be in a very good situation,” he added, speaking of the division. “We want things now, but it takes a bit of time.”In the nine months, sales of these two categories were lackluster, with footwear posting a 1.2 percent decrease to 432.4 million euros, representing 43 percent of the total. Handbags and leather accessories were down 0.6 percent to 367.4 million euros.Fragrances, boosted by the launch of two new scents, were up 3.2 percent to 64.7 million euros. Ready-to-wear decreased 0.9 percent to 61.8 million euros. Poletto said that after the focus on footwear and leather goods, ready-to-wear and men’s shoes will be next.Earnings before interest, taxes, depreciation and amortization decreased 25.1 percent to 162 million euros from 216 million euros, with an incidence on revenues down to 16.1 percent from 21.3 percent in the nine months of 2016.Operating profit was down 32.2 percent to 115 million euros.Poletto said the U.S. dollar exchange rate with the euro is "a big variable for us" and emphasized the "cleaning up" strategy with "full-price business essential to us."As of Sept. 30, the group's retail network counted 687 points of sales, including 407 directly operated stores and 280 third-party operated stores. The retail distribution channel was up 1.2 percent to 647.6 million euros. The company has been refurbishing some stores, but Poletto characterized this as “a light retouch and not extensive, to implement visual and add a more homey feel.”The wholesale channel, penalized by a destocking activity, the political tensions in South Korea and a strategic rationalization in Japan, was down 4.7 percent in the nine months to 340 million euros.The Asia-Pacific area continued to be the group's top market in terms of revenues, increasing by 2.8 percent to 370.1 million euros, despite the soft trend in South Korea, mostly due to the significant decrease of Chinese tourists. Poletto said Hong Kong was “still negative,” although the reopening of a refurbished store in Canton Road earlier this month is “showing good signs.” On the other hand, the retail channel in China climbed 8.1 percent in the first nine months of 2017.Europe was down 1.6 percent to 263.5 million euros, with a positive performance for the retail channel and a negative trend for the wholesale business, negatively impacted by the destocking activity.Sales in North America decreased 4.3 percent to 231.8 million euros, negatively impacted by the department stores sales.The Japanese market registered a 6.7 percent decrease to 86.6 million euros, due to the strategic rationalization of the wholesale channel, while the retail stores recorded a stable performance.Revenues in Central and South America continued to grow, registering a 3.1 percent increase to 52.7 million euros, decelerating in the third quarter due to the earthquake in Mexico in September.Poletto also underscored Ferragamo’s online initiatives. A new web site debuted in May in the U.S. and was launched on Monday in Europe and China. “This is good news and by the end of 2018 it will be available in all other countries,” he said.Investments reached 51 million, compared with 46 million euros in the same period last year, mainly channeled into the distribution center and the store network.As of Sept. 30, the net financial position was positive at 100 million euros, compared with a debt of 18 million euros at the end of September 2016.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews