© Reuters. SALVATORE FERRAGAMO CONFIRMS MORE ITS MEDIUM-TERM OBJECTIVES
MILAN (Reuters) – The group of luxury Italian Salvatore Ferragamo said on Thursday, in the inability to confirm the financial objectives that it had set for the next three years, 2018, announcing it as a new year of transition for the claw founded 90 years ago.
In a press release, the fashion house florentine explains that she can not be certain of the “ambitions in the medium term presented to the market on 3 February, when it unveiled an ambitious strategy for the period 2017-2020.
In February, Ferragamo had expected a growth of its turnover more than twice that of the market over the four years 2017-2020, promising also a growth, not quantified, its operating margin and gross profit.
This strategy should go through a higher sales per square metre in the nearly 700 shops of Ferragamo, but the margin has since shrunk, affected by release of stocks in preparation. These are intended to free up space for new products, destination of the younger clientele of the brand.
The group has also indicated that “the phase of transition that has characterised 2017” would extend into 2018.
The ceo Eraldo Poletto, who has taken the last year to the iconic Michele Norsa, had already warned in November, when Ferragamo was an operating profit decline of 25% over nine months, that 2018 would be “another year of hard work.”
(Giulia Segreti, Véronique Tison for the French service)