(Alliance News) - Salvatore Ferragamo Spa reported Thursday that it ended the first quarter with revenues of EUR227 million, down 18 percent at current exchange rates and 17 percent at constant exchange rates compared to the first quarter of 2023.

The volatile consumer environment, especially in China, and sales in January impacted the performance of the DTC3 channel while the performance of the Wholesale channel was hurt by a weak environment and a difficult comparison basis due to the different timing of deliveries compared to last year, according to the company.

EMEA, in the first quarter, reported a 31 percent decline in net sales compared to a difficult basis of comparison in the first quarter of 2023, when they rose 25 percent, mainly due to the Wholesale channel. Performance in the DTC3 channel was higher than last year, by 3.5 percent at constant exchange rates, while performance in the Wholesale channel was negative by 51 percent at constant exchange rates, impacted by the weak overall environment, a difficult comparison base compared to last year, and a different timing in deliveries.

The North America region recorded an 11% decline in net sales, mainly due to the double-digit negative performance recorded by the Wholesale channel but with the DTC3 channel's performance improving during the quarter, registering a performance in line with last year in February and growing high single-digit in March.

The Central and South America region reported an 8.6 percent decline in net sales but with the DTC3 channel in line with last year while the Wholesale channel dropped double digits.

Asia Pacific reported a 19% decline in net sales and net sales in China and Korea, impacted by low consumer confidence, performed negatively in both the DTC3 and Wholesale channels while the rest of Asia Pacific was positive compared to last year, also benefiting from an increase in tourist flows. The Japanese market reported a 16 percent decline in net sales.

Salvatore Ferragamo's stock closed Thursday up 2.3 percent at EUR9.70 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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