Italian luxury market split: Moncler revenue up, Ferragamo sees drop

WEAK: NO GROWTH EITHER IN SALES OR PROFITS

Salvatore Ferragamo S.p.A. (EXM: SFER)

Florence-based Salvatore Ferragamo S.p.A.—the parent company of the Salvatore Ferragamo group—is renowned for the creation, production, and worldwide distribution of luxury collections of shoes, leather goods, apparel, silk products, and other accessories for men and women, also including eyewear, watches, and fragrances under licence.

Salvatore Ferragamo announced the group’s preliminary consolidated revenue for the full year 2023 on 25 January 2024. The reported revenue of $1.26 billion was 7.6 per cent down in current exchange rates and 8.1 per cent in constant exchange rates compared to FY22. Both channels – retail distribution and wholesale – decreased in current exchange terms by 10.8 per cent and 12.1 per cent, respectively. Except for Europe (+3.3 per cent), all other markets of Asia-Pacific (-13.1 per cent), Japan (-12.6 per cent), North America (-19.2 per cent), and Central and South America (-7.1 per cent) registered a decrease in sales over the previous year. The footwear category, with a 46 per cent sales contribution, decreased by 9.3 per cent; leather goods, with a sales contribution of 40 per cent, decreased by 14.1 per cent; and ready-to-wear (RTW), with a 6.6 per cent sales share, declined by 12.1 per cent. No announcement pertaining to profitability performance was made.

STRONG: GROWTH IN BOTH SALES AND PROFITS

Moncler SPA (BIT: MONC)

The year 2023 marked the 10-year anniversary of the Moncler Group's listing on the Milan stock exchange. On February 28, 2024, the board of directors of Moncler S.p.A. met to review and approve the draft of the financial statements and the consolidated financial statements for the financial year ended 31 December 2023.

According to the draft, Moncler Group's consolidated revenues of $3,261.48 million registered an increase of 17 per cent at constant exchange rates (15 per cent at current exchange rates) compared to $2,844.75 million in 2022. The respective revenues for the brands, Moncler and Stone Island, increased by 19 per cent and 4 per cent at constant exchange rates, respectively. The group registered growth in EBIT and net income as well. The EBIT of $976.85 million (30 per cent of sales) increased over the previous year's EBIT of $846.46 million (29.8 per cent), with a net income yield of $668.75 million compared to $663.07 million in 2022. The end-year financial position of the company stands comfortably at $1129.75 million in net cash ($894.22 million as of December 31, 2022) and reduced lease liabilities of $880.02 million compared to $915.21 million as of December 31, 2022. The net cash figure is after the dividend payment of $331.59 million.

In the fourth quarter, Group revenues stood at $1,287.34million, up 16 per cent (at constant exchange rates) compared with the same period of 2022. The Moncler and Stone Island brands recorded revenues of $1176.96 million and $110.38 million respectively in Q4.

With its luxury brands Moncler and Stone Island (acquired in March 2021), the Moncler Group operates in all key international markets. The Group distributes its brands' collections in more than 70 countries through directly operated physical and digital stores as well as selected multi-brand doors, department stores, and e-tailers.

ALCHEMPro News Desk (KD)