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It’s not just LVMH that’s suffering from a sluggish luxury goods market, particularly in China.<\/p>\n
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Ferragamo<\/strong><\/b> not only announced disappointing third-quarter<\/strong><\/b> sales, but also warned that its 2024 results would be in the low range of expectations.<\/strong><\/b><\/p>\n <\/p>\n <\/p>\n Down 7.2% at constant exchange rates and 9.6% at current exchange rates<\/strong><\/b>, sales for the Italian luxury goods house finally came in at just 221 million euros<\/strong><\/b> in the third quarter, compared with analysts’ consensus expectations of 229 million euros<\/strong><\/b>…<\/p>\n\n <\/p>\n \u201cThe decline in consumer confidence is particularly noticeable in Asia-Pacific<\/strong><\/b>, which was the main negative factor in our sales performance,\u201d said Marco Gobbetti, Managing Director<\/strong><\/b>l since 2021, during the post-results conference call with analysts.<\/p>\n <\/p>\n More generally, the House also referred to \u201ca difficult macroeconomic and consumer environment, a situation that is expected to continue in the latter part of the year\u201d.<\/strong><\/b><\/p>\n <\/p>\n Ferragamo’s CEO stressed that \u201cthe current context\u201d was adding \u201cpressure\u201d on sales and profitability, \u201cthus delaying the achievement\u201d of its financial targets<\/strong><\/b>. As a result, he expectsoperating profit for fiscal 2024 to be at the lower end of<\/strong><\/b> analysts’ current estimates<\/strong><\/b>, at around 30 million euros ($32.7 million).<\/p>\n <\/p>\n In more detail, all markets (with the exception of Japan) and channels declined<\/strong><\/b> in the third quarter, but to varying degrees.<\/p>\n <\/p>\n Geographically, the Asia-Pacific region (excluding Japan) posted the most spectacular fall<\/strong><\/b> (-16.7% at constant exchange rates and -18.1% at current exchange rates to 216.1 million euros). Japan<\/strong><\/b>, however, escaped the trend, with an increase of 3.9% at constant exchange rates<\/strong><\/b> (-5.4% at current exchange rates) to 60.9 million euros.<\/p>\n <\/p>\n Weighed down by a 28% decline in the wholesale channel, the EMEA zone also posted a double-digit fall,<\/strong><\/b> down 11.5% at constant and current exchange rates to 184.5 million euros.<\/p>\n <\/p>\n North America (-6.4% at constant exchange rates<\/strong><\/b> and -6.1% at current exchange rates to 207.7 million euros) and Central and South America (-3.3% at constant exchange rates and -7.3% at current exchange rates to 54.5 million euros) proved slightly more resilient.<\/p>\n <\/p>\n <\/p>\n In terms of sales channels, wholesaling was much more penalized<\/strong><\/b> ( -22.1% at constant exchange rates<\/strong><\/b> and -21.0% at current exchange rates to 171.6 million euros) than direct retailing (-5.6% at constant exchange rates<\/strong><\/b> and -7.9% at current exchange rates to 552.2 million euros).<\/p>\n <\/p>\n Despite these setbacks, Ferragamo is not giving up.<\/p>\n <\/p>\n \u201cThe work of enriching the product offering continues, as do marketing and retail actions<\/strong><\/b> aimed at maximizing the brand’s potential and acquiring new customers, pursuing our own narrative and improving the experience both in-store and online, while maintaining strict operational discipline.\u201d details the Maison.<\/p>\n <\/p>\n It points out that such efforts have already produced, in the last quarter, \u201c encouraging results in terms of sales in the main distribution channel in Europe, Japan and Latin America,<\/strong><\/b> in all the main product categories of the renewed continuation offer, and in particular in women’s handbags and shoes<\/strong><\/b>, also stimulated by some new icons.\u201d<\/p>\n <\/p>\n The company co-opted Ernesto Greco as a member of the Board of Directors<\/strong><\/b> and decided to convene the Ordinary and Extraordinary General Meeting<\/strong><\/b> of Shareholders for November 26.<\/strong><\/b><\/p>\n <\/p>\n The stock market did not punish the company’s latest performance. On Tuesday, the day of publication, Ferragamo shares closed up 0.7%<\/strong><\/b> at 6.48 euros. But over five days, it still fell by 2.3%, due to a 3.6% drop on October 14.<\/p>\n <\/p>\n The following day, October 15, LVMH itself reported quarterly sales down 3%<\/strong><\/b> on a like-for-like basis to just over 19 billion euros, weighed down in particular by the Chinese market and its wines and spirits as well as watches and jewelry divisions.<\/p>\n <\/p>\nBelow analysts’ consensus<\/h2>\n
Japan, the only market on the rise<\/h2>\n
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Continued efforts<\/h2>\n
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