Milan stock exchange : Salvatore Ferragamo’s share rises after quarterly results

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The Milan Stock Exchange announced yesterday the global increase of the share of Salvatore Ferragamo, the famous Italian luxury house, by 4.38% to 14.06€ and by 6.24% in the middle of the day. Thanks to its cost reduction strategy, the company managed to exceed its expectations on its profits of over 4 million euros with a turnover of 611 million euros.

 

The Italian company Salvatore Ferragamo closes a very nice third quarter with improved results.

 

The brand revealed its results earlier than expected and was welcomed by the adoption of its new strategy to reduce all its production costs. This enabled the brand to achieve even better than expected its profit targets of over 4 million euros and to increase its share on the Milan stock exchange from 4.38% to €14.06.

 

We maintain our view that Ferragamo has a strong heritage and that another quarter of the streamlining of the business will contribute to its attractiveness as a target.” says US investment bank Jefferies, and that “a more streamlined business with an optimized cost structure may be attractive to a buyer. The bank adds that a “change of control of the company is likely.

 

Located in Florence, Italy, the brand has been thinking for some years about changing ownership or even the option of selling the company, a choice formally rejected by the heirs of the name.

 

The shares of the company are divided between three players: firstly, Ferragamo Finanziaria holding company, which holds 54.3% of the company’s capital, by billionaire businessman Peter Woo with 6% of the shares, and finally by members of the Ferragamo family, who each hold an additional 10.7% of the shares. The decision to consider the sale of these shares poses problems for everyone who does not share the same vision of the company’s future.

 

Nevertheless, Salvatore Ferragamo is establishing good figures in its different global markets such as Asia-Pacific (42% of its activity), then Europe (23%), North America (20%) and Japan, which is moving away from other markets with 10% of the brand’s activity: “Ferragamo has shown a good recovery and the fourth quarter should be led by Asia, while North America could be more uncertain” said the Italian investment bank Banca Akros. “We expect Europe to weigh on the fourth quarter.

 

An opinion shared by Equita Sim, the independent Italian investment bank, which evokes an October that “has gradually improved in mainland China, Japan, Taiwan, North America but not Europe, where visibility is still reduced by the restrictions currently in place.” Nevertheless, the Italian bank is expecting more results from the company to confirm this recovery, particularly through evidence of employee income levels.

 

This third quarter, as positive as it may be, will not yet compensate for the losses made since the beginning of the pandemic, which have strongly affected the brand. From January to September 30 inclusive, the company’s employee revenues decreased overall this year by 38.5% and by 18.9% for the third quarter.

 

The Italian company also reported a net decline in revenues compared to the previous year, 611 million euros compared to 994 million euros, a decrease of 38.5%. These figures can be explained mainly by the development of the virus worldwide and the halt in business, particularly due to the closure of the brand’s various points of sale. To complete these figures, the Italian luxury brand recorded a net decline of 96 million euros in the third quarter. Figures that are strongly opposed to the year 2019 for the company, which had established a nice year with 61 million euros in profit.

 

Read also > ESSILOR ANNOUNCES ITS RESULTS FOR THE THIRD QUARTER OF 2020 AND CLOSES FIVE OF ITS FRENCH SITES

 

Featured photo: © Salvatore Ferragamo[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]

The Milan Stock Exchange announced yesterday the global increase of the share of Salvatore Ferragamo, the famous Italian luxury house, by 4.38% to 14.06€ and by 6.24% in the middle of the day. Thanks to its cost reduction strategy, the company managed to exceed its expectations on its profits of over 4 million euros with a turnover of 611 million euros.

 

The Italian company Salvatore Ferragamo closes a very nice third quarter with improved results.

 

The brand revealed its results earlier than expected and was welcomed by the adoption of its new strategy to reduce all its production costs. This enabled the brand to achieve even better than expected its profit targets of over 4 million euros and to increase its share on the Milan stock exchange from 4.38% to €14.06.

 

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The Milan Stock Exchange announced yesterday the global increase of the share of Salvatore Ferragamo, the famous Italian luxury house, by 4.38% to 14.06€ and by 6.24% in the middle of the day. Thanks to its cost reduction strategy, the company managed to exceed its expectations on its profits of over 4 million euros with a turnover of 611 million euros.

 

The Italian company Salvatore Ferragamo closes a very nice third quarter with improved results.

 

The brand revealed its results earlier than expected and was welcomed by the adoption of its new strategy to reduce all its production costs. This enabled the brand to achieve even better than expected its profit targets of over 4 million euros and to increase its share on the Milan stock exchange from 4.38% to €14.06.

 

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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