MILAN – Sales at Italian luxury group Salvatore Ferragamo rose by 31.4% last year, in line with market expectations, although they are still far below pre-pandemic levels.
The leather goods maker said on Thursday 2021 revenues totalled 1.136 billion euros ($1.27 billion), in line with a Refinitiv consensus of 1.135 billion euros.
In the fourth quarter sales grew by 23.5% at constant exchange rates, thanks to a strong performance in the United States and booming online revenues.
Most luxury groups have already reached, if not exceeded, pre-COVID levels, showing the challenge facing Ferragamo’s new Chief Executive Marco Gobbetti, who started at the Florentine group this month after 4-1/2 years at the helm of Burberry.
The pandemic crisis hit just as family-owned Ferragamo strived to rejuvenate a brand famous for the shoes worn by Hollywood stars such as Audrey Hepburn.
In 2019, before the health crisis, Ferragamo posted sales of 1.377 billion euros in sales, but lockdown measures and a collapse in tourism led to a 33% revenue drop in 2020 for a group that is more exposed than rivals to travel spending.
Gobbetti’s main task will be to step up its turnaround efforts and revitalise the brand with a new fashion director after British designer Paul Andrew left in April. (This story corrects 2020 sales drop to 33% from 20% in paragraph six)
($1 = 0.8971 euros)
(Reporting by Claudia Cristoferi, editing by Silvia Aloisi)