Salvatore Ferragamo Reports 29.6 Percent Growth in 2021 Revenues
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MILAN — Salvatore Ferragamo SpA’s accelerated performance in North America and its strong digital business in the last quarter of 2021 contributed to lift the Italian luxury group’s revenues in the year ended Dec. 31.
In 2021, Ferragamo’s preliminary consolidated revenues amounted to 1.13 billion euros, up 29.6 percent compared with 2020, excluding the fragrance business. At constant exchange rates, sales rose 31.4 percent.
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The sales figure for 2020 was restated and reported as 876.5 million euros, following the discontinuation of the in-house fragrance business.
Last July, the Florence-based company and Inter Parfums Inc. signed a worldwide licensing agreement for the production and distribution of Ferragamo branded perfumes, effective from October and to last for an initial term of 10 years.
The deal marked a turning point for Ferragamo’s beauty business as its fragrance division had been managed in-house for the last two decades.
To ensure the continuity of the Made in Italy production and the highest level of synergies with the fashion house, Inter Parfums will operate through a wholly owned company based in Florence, said the companies at the time.
In the last quarter of 2021, revenues climbed 20.8 percent compared with the same period in the previous year.
As is customary for Ferragamo when it releases its preliminary sales figures, a call with analysts and the press was not scheduled on Thursday. The industry will have to wait until March 8 for the full 2021 results and for the first comments by the newly installed chief executive officer Marco Gobbetti.
The former Burberry CEO succeeded Micaela le Divelec Lemmi, who left in September. Executive vice chairman Michele Norsa exited at the end of December. It is understood the Ferragamo family is anxious to see the brand further developed and Gobbetti is also said to be tasked with appointing a new creative director following the departure of Paul Andrew in May.
In 2021, Ferragamo’s retail sales were up 30.2 percent to 829.5 million euros, accounting for 73 percent of the total. In the last quarter, retail was up 17.1 percent compared with the same period in 2020, exceeding pre-COVID-19 levels, mainly driven by the performance in five areas: Greater China, North America, Latin America, Korea and Japan.
The brand’s direct e-commerce channel continued to grow in 2021 and it recorded a gain in sales of 41.3 percent. In the last quarter, it grew 21.6 percent at constant exchange rates.
The wholesale channel grew 28.6 percent to 295.9 million euros, accounting for 26.1 percent of the total, and in the last quarter it was up 32.2 percent.
The Asia Pacific area was confirmed as the group’s top market in terms of revenues, up by 17.3 percent to 436.2 million euros, and representing 38.4 percent of the total.
The retail channel in China posted an increase in revenues of 9.4 percent at constant exchange rates. The retail channel in Korea also posted a solid growth trend of 13.6 percent at constant exchange rates.
Sales in Japan rose 3.7 percent to 90.1 million euros, climbing 7.2 percent at constant exchange rates in the last quarter of 2021.
The Europe, Middle East and Africa region was still penalized by the impact of the pandemic and the consequent store closures and limited tourist flows. The area reported a 21.2 percent increase in revenues, which reached 217 million euros, representing 19.1 percent of the total. The last quarter saw 29.7 percent growth at constant exchange rates.
Revenues in North America soared 71.5 percent to 323.5 million euros, accounting for 28.5 percent of the total. In the last quarter, sales climbed 58.8 percent at constant exchange rates.
Last fall, Ferragamo reorganized its management team by appointing former Barneys New York and Tiffany & Co. executive Daniella Vitale as CEO of North America and Vincenzo Equestre, a former L’Oréal and LVMH Moët Hennessy Louis Vuitton executive, as CEO of Europe, Middle East and Africa.
In 2021, revenues in the Central and South America rose 37.3 percent to 68.5 million euros. In the last quarter, they grew 16.1 percent at constant exchange rates.
By category, footwear sales grew 29.7 percent to 486.1 million euros, representing 42.8 percent of the total.
Leather goods were up 27.5 percent to 495.6 million euros, accounting for 43.6 percent of the total.
Apparel grew 39.6 percent to 70 million euros, representing 6.2 percent of the total.
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