Salvatore Ferragamo S.p.A.
The Board of Directors approves the Consolidated Half Year Financial Report as of 30
Revenue up 44.2% vs. 1H 2020, Operating Profit (EBIT) at 66 million Euros, Net Profit 33
million Euros and Positive Net Financial Position5 of 205 million Euros
US, Mainland China and Korea lead the strong improvement in profitability
Retail Revenues in July and August close to pre-Covid levels
- Revenues: 524 million Euros (+44.2% vs. 363 million Euros at 30 June 2020, +46.2% at constant exchange rates2)
- Gross Operating Profit (EBITDA1): 144 million Euros (vs. 32 million Euros at 30 June 2020)
- Operating Profit (EBIT): 66 million Euros (vs. -72 million Euros at 30 June 2020)
- Net Profit: 33 million Euros (vs. -86 million Euros at 30 June 2020)
- Net Financial Position5: positive for 205 million Euros (vs. 58 million Euros positive at 30 June 2020)
During the same meeting the Board of Directors has:
- Granted all powers of ordinary administration to the Executive Vice Chairman Michele Norsa
- Launched the Treasury Shares purchasing plan
Florence, 7 September 2021 – The Board of Directors of Salvatore Ferragamo S.p.A. (MTA: SFER), parent company of the Salvatore Ferragamo Group, one of the global leaders in the luxury sector, in a meeting chaired by Leonardo Ferragamo, examined and approved the Half Year Financial Report as of 30 June 2021, drafted according to IAS/IFRS international accounting principles (Limited Audit).
To be noted that all performance measures are reported excluding the Fragrance business both from the data relating to 2021 and from the 2020 comparative data, as the licensing of the business, as announced in the press release as of July 7th 2021, is reclassified in the “Non-current Assets Held for Sale and Discontinued Operations”, in accordance with the accounting principle IFRS 5.
Notes to the Income Statement for 1H 2021
Consolidated Revenue figures
As of 30 June 2021 the Salvatore Ferragamo Group reported Total Revenues of 524 million Euros up 44.2% at current exchange rates (+46.2% at constant exchange rates2) vs. the 363 million Euros recorded in 1H 2020. Revenues in 2Q 2021 registered a 91.3% increase at current exchange rates (+90.5% at constant exchange rates2).
The increase in Revenues has been achieved despite the permanence, in some countries, of lock- downs of the commercial activities, bans and restriction on international traffic, due to the Covid- 19 pandemic. At 30 June 2021, the Group is operating with 53% of retail stores at full capacity.
Revenues by distribution channel3
As of 30 June 2021, the Group’s Retail network counted on a total of 639 points of sales, including 398 Directly Operated Stores (DOS) and 241 Third Party Operated Stores (TPOS) in the Wholesale and Travel Retail channel, as well as the presence in Department Stores and high-levelmulti-brand Specialty Stores.
In 1H 2021 the Retail distribution channel posted consolidated Revenues up 46.3% (+49.4% at constant exchange rates2).
In 2Q 2021 Retail Revenues increased by 81.4% (+82.9% at constant exchange rates2), with four Areas (Greater China, North America, Latin America and Korea) exceeding the pre-Covid Revenues level.
The direct E-commerce channel continues to consolidate a solid growth at 30 June 2021, with Revenues up 70.6% (+78.3% at constant exchange rates2).
In 2Q 2021 the direct E-commerce increased by 65.8% at constant exchange rates2.
The Wholesale channel registered an increase in Revenues of 41.1% (+40.5% at constant exchange rates2) vs. 1H 2020.
In 2Q 2021 Wholesale Revenues were up 134% (+122% at constant exchange rates2) vs. 2Q 2020, despite the still challenging situation of the Travel Retail channel, due to the international travel restrictions as a consequence of the pandemic.
Revenues by geographical area3
The Asia Pacific area is confirmed as the Group’s top market in terms of Revenues, up by 35.2% (+34.0% at constant exchange rates2) vs. 1H 2020.
In 1H 2021 the retail channel in Greater China posted a Revenue growth of 45.0% vs. 1H 2020 at constant exchange rates2. In particular, the retail channel in China posted an increase in Revenues of 47.4% vs. 1H 2020 at constant exchange rates2 and Korea also posted a solid growth trend in 1H 2021 (+21.9% vs. 1H 2020 at constant exchange rates2).
The Japanese market registered a 13.4% increase in Revenues (+18.2% at constant exchange rates2) in 1H 2021, with a positive trend in 2Q 2021, (+55.0% at current exchange rates and +66.9% at constant exchange rates2) vs.2Q 2020.
Overall the Asian continent represents currently over 50% of total Group’s revenues in 1H 2021.
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