Ferragamo appoints former Gucci executive as CEO

Worldwide
Published:  02 August, 2018
Micaela Le Divelec Lemmi

Despite a revenue increase in the handbags and leather accessories category, the luxury Italian brand recorded a -6.2% decline in revenue at current exchange rates in the first half of 2018.

Salvatore Ferragamo’s revenue totalled €674 million (-6.2%) in the six months ending June 30, 2018 against €718 million in the corresponding period of the prior year. Gross operating profit (EBITDA) was €117 million in the period (-14.5%), and operating profit (EBIT) stood at €85 million (-18.5%). Net profit was €59 million, down -23.1% (H1 2017: €76 million). In terms of product category, the footwear segment posted a -5.5% decrease in revenue, while that of handbags and leather accessories was up +1.6%.

Geographically, the Asia Pacific region was the Group's main market in H1 despite revenue decreasing -5.5% (-2.7% at constant exchange rates). After a strong first half in 2017 (+15.5%), sales in the retail channel in China was down -1%. However, the trend in Hong Kong is said to have “continued to be very strong”, up +32 at constant exchange rates. Sales in Japan were down -4.2%, attributed to the “strategic rationalisation of the wholesale channel”, while the retail channel registered a positive trend. In North America revenue decreased -7.1% in the period, while revenues in the Central and South American regions decreased -8.6%, penalised by the currencies trend (+0.5% at constant exchange rates), according to Ferragamo.

During the board meeting on July 31, Micaela Le Divelec Lemmi was appointed CEO with immediate effect. She has also taken office as the Director in charge of the internal control and risk management system, and as a member of the Committee of Product and Brand Strategies of the Company.

Lemmi joined the Ferragamo Group as General Manager in April after 20 years at Gucci, where she was appointed CFO in 2008 and Chief Operations Officer in 2013. In 2014 she also became CEO of Richard Ginori’s, under the control of the Kering Group, until 2015 when she was named Executive Vice President and Chief Consumer Officer of Gucci.