Salvatore Ferragamo 2016 sales up 1%, growth in Asia-Pacific, Americas while Europe slumps

On Tuesday Italian luxury label Salvatore Ferragamo reported a 1% increase in its 2016 consolidated revenue, up to €1.43 billion. At constant exchange rates, the value of sales was down 2% year-on-year.

In the fourth quarter alone, sales grew by 4%, or 1% at constant exchange rates.

In 2016 Asia-Pacific was still the group's main market, accounting for 36% of sales. Ferragamo's revenue in the region grew 1%, rising by 4% in the fourth quarter here too, despite "business being still weak in Hong Kong," according to the group. In Japan, sales were stable year-on-year, but grew by 3% in the fourth quarter.

They rose by more than 4% in North America (+7% in the last quarter) and by 6% in Central and South America (+12% in the last quarter).

Sales declined instead in Europe, down 4% year-on-year and 2% in the last quarter, due to reduced tourist flows after the terrorist attacks in France and Germany.

In 2016, the Florentine label embarked on a thorough organisational overhaul, first of all by appointing a new general manager: since August, it is led by Eraldo Poletto, who replaced Michele Norsa, who was in charge of the group for 10 years. Poletto was formerly the General Manager of Italian leather goods manufacturer Furla, which he helped grown on international markets. Ferragamo's Deputy General Manager Sofia Ciucchi also left, at the end of September.

Another major change occurred in March, as Ferragamo announced the departure of Creative Director Massimiliano Giornetti. The label stated it wished to "seize this opportunity to review [its] creative approach."

Since then the label has appointed Fulvio Rigoni as Creative Director of the women's ready-to-wear collection and Guillaume Meilland as Creative Director of men's ready-to-wear, while footwear designer Paul Andrew was put in charge of the women's shoes division.