The quarterly results announced by Tapestry and Salvatore Ferragamo fell short of expectations. Tapestry, owner of Coach, reported sales below estimates, while Salvatore Ferragamo recorded a significant drop in revenues. These contrasting performances underline the current challenges facing luxury brands, despite signs of improvement in some sectors.
Luxury conglomerate Tapestry and Italian luxury brand Salvatore Ferragamo released their quarterly results on Thursday, May 9.
Tapestry, maker of handbags and owner of Coach, reported net sales of $1.48 billion for the quarter ending March 30.
This figure was below Wall Street expectations, which were estimated at $1.50 billion by analysts polled by LSEG. This disappointing performance was attributed to falling demand for handbags and accessories in the face of high inflation.
Meanwhile, Italian luxury brand Ferragamo reported a 16.6% drop in first-quarter revenues at constant exchange rates. The company’s total revenues for the quarter amounted to 227 million euros, below analysts’ expectations of 237 million euros according to the LSEG consensus.
CEO Marco Gobbetti highlighted the challenges facing Ferragamo, particularly in China, where sales were particularly difficult amid a general slowdown in sales across all geographic regions and distribution channels.
“During the quarter, our performance was affected by the continued volatility of the Chinese market, as well as by the persistent weakness in wholesale and travel retail, further exacerbated by an unfavorable comparison,” he said.
Ferragamo optimistic
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Featured photo : © Coach
