Ferragamo gross sales beat forecasts in H1 regardless of slowdown in China

MILAN (Reuters) -Revenues at Italian luxurious group Salvatore Ferragamo topped market forecasts within the first half of the 12 months regardless of a slight slowdown within the second quarter as a result of COVID-19 restrictions in China.

Underpinned by sound development in Europe and United States, gross sales rose by 17% at fixed trade charges to 630 million euros ($624 million) within the six months to the tip of June, versus an analyst common estimate of 621 million euros, in response to a Reuters ballot.

Group working revenue totalled 95 million euros within the first six months of 2022 from 66 million euros a 12 months earlier, the corporate mentioned on Tuesday. Analysts had anticipated 83 million euros of EBIT.

Chief Government Marco Gobbetti, who joined the family-owned group in January after having run Britain’s Burberry, mentioned Ferragamo would speed up funding within the second half of the 12 months “to construct energy in platforms and areas…while remaining aware of the extra unstable and difficult macroeconomic backdrop”.

Ferragamo, whose sneakers have been worn by Hollywood legends resembling Audrey Hepburn, has struggled in recent times to revamp its model and attraction to youthful luxurious customers.

In Might, Gobbetti promised fast progress, vowing to extend investments, revamp shops and appeal to youthful clients to double 2021 revenues to nearly 2.3 billion euros by 2026.

Final month Ferragamo struck a partnership with on-line luxurious procuring retailer Farfetch to develop its digital presence, focusing on youthful customers.

($1 = 1.0094 euros)

(Reporting by Claudia Cristoferi, modifying by Cristina Carlevaro)