The Italian high-end luxury brand Salvatore Ferragamo Group's parent company Salvatore Ferragamo S.p.A. (hereinafter referred to as "Flagamu AG") released its 2018 financial report.
As of December 31, 2018, the company's turnover fell 3.3% year-on-year to 1.347 billion euros, operating profit fell 19.5% year-on-year to 150 million euros, and net profit fell 21.1% to 90 million euros.
In terms of distribution channels, during the reporting period, the company's retail network covered 672 points of sale, including 409 directly operated stores, 263 third-party stores for wholesale and tourism retail channels, and department stores and high-end brand stores. In FY 2018, retail channel turnover decreased by 3% compared to FY2017, wholesale channel turnover decreased by 3.8%, and wholesale channel turnover decreased by 5.4% in the fourth quarter. The group pointed out that the company is in EMEA (Europe, Middle East, The three regions of Africa collectively) and the United States underperformed but were positive in the Asia-Pacific region and the tourism retail channel.
In terms of regional revenue, during the reporting period, although it was Dacoz down 1% from 2017, the Asia-Pacific region is becoming a major market for the group. The revenue during the period was 505 million euros, and revenue accounted for 37.6%. In particular, sales performance in the Greater China region performed well, with retail channels increasing by 7.6% and increasing by 10.1% at constant exchange rates. The Southeast Asian market did not perform well. The European and North American markets contribute nearly 50% of revenue. The Japanese market is in third place.
In terms of categories, during the reporting period, footwear sales revenue ranked first, with annual sales of 550 million euros and revenue accounting for 41.2%. Followed by leather goods, annual sales of 520 million euros, revenue accounted for 38.7%. Fragrance products ranked third with annual sales of 94 million euros. In the back are accessories and ready-to-wear. In FY2017, sales of fragrances and leather goods increased by 6.5% and 2.6%, respectively, but sales of footwear, accessories and garments declined. Among them, footwear sales fell the most, at 3.9%.
Ferragamo analysis pointed out that in 2019, personal luxury market consumption will maintain a growth rate of 6%, but compared with 2018, the growth rate of more than 10% will tend to slow down. The role of physical sales channels in boosting brand performance is still limited. Rational distribution of distribution channels and digitalization of conversion will be the choice of most brands. China's luxury consumption is shifting from overseas to domestic, and this trend will continue. While attracting a new generation of consumers, traditional luxury brands must also pass on new-brand attitudes to old consumers by using products that conform to the trend of the times or by injecting symbols with the characteristics of the times. In the 2018 fiscal year, air passenger traffic increased by 6.5%, and this market seems to remain strong in 2019. The 20% increase in FY 2018 allows brands to see the potential of the online luxury market. In 2019, the online market will remain the focus of brand positioning. In the future, it will increase omni-channel investment and seek more opportunities to cooperate with third parties.
According to the information, Ferragamo AG is the parent company of the Philippine Group, a leading brand in the global luxury market, dating back to 1927, focusing on footwear, leather goods, ready-to-wear, silk and accessories, and men and women. Innovation and manufacturing of the atmosphere. The group's products also include glasses and watches produced by licensed manufacturers.
As of December 31, 2018, the Group had approximately 4,000 employees and 672 stores worldwide. Ferragamo currently has 97 stores in China, Hong Kong and Macao and Taiwan, including 6 in Beijing. In addition, Ferragamo has an official website (official mall) and WeChat online boutiques on the Chinese online. Tmall and Jingdong did not open an official flagship store.
