MILAN — Salvatore Ferragamo SpA posted a net loss of 15 million euros, or $20.8 million, last year as it was hit by one-off charges related to previous years.
This story first appeared in the May 4, 2010 issue of WWD. Subscribe Today.
In 2008, Ferragamo reported net profits of 39 million euros, or $57.3 million. The company did not reveal details of the charges.
For the 12 months through Dec. 31, revenues showed a 10 percent slide, down to 620 million euros, or $861.8 million.
However, the company said that “in a particularly critical year for the luxury goods industry,” Ferragamo registered 2 percent growth in its directly owned retail network, compared with the previous year. Emerging markets, China and Latin America in particular, helped drive the company’s business. Asia accounted for over 50 percent of total sales.
At the end of 2009, Ferragamo had 570 stores, of which 299 were directly owned.
In 2009, earnings before interest, taxes, depreciation and amortization (EBITDA) fell 28 percent to 62 million euros, or $86.1 million, compared with the previous year. Dollar amounts have been converted at average exchange for the periods to which they refer.
Looking ahead, Ferragamo said business is picking up in the first quarter of 2010, which showed a 10.7 percent increase in revenues across all markets worldwide, compared with the same period the previous year, boosted by a 21.2 percent increase at retail.
In April, the group’s chief executive officer, Michele Norsa, said during the opening of Ferragamo’s store in Tokyo’s Roppongi district that the house is performing more strongly than expected in Japan, registering an 8 percent jump in retail sales in the first three months of the year. Ferragamo has been focusing its investments in Asia, and in China in particular. In addition to a large flagship in Shanghai, which opened in April to coincide with the World Expo. In June, Ferragamo will stage a fashion show in Hong Kong at the Bank of China skyscraper.