Salvatore Ferragamo’s revenues totalled €1,347 million for the year ended December 31, 2018, down -3.3% compared with the previous year (€1,393 million in 2017). EBITDA reached €214 million in the year, down -13.8% year on year, while operating profit (EBIT) stood at €150 million, representing a -19.5% decline over 2017. Net profit in 2018 totalled €90 million, a -21.1% decrease compared with the previous year.

The Italian label’s revenues in the fourth quarter of 2018 registered a -3.5% decrease; penalised by the currencies impact (-1.8% at constant exchange rates), by the lower incidence of promotional sales in the primary channel, lower revenues in the secondary channel, and by the negative trends of the wholesale business, according to Ferragamo.

Revenues in Asia Pacific, the Group’s top market in terms of revenues, decreased -1% in 2018, despite China recording a +7.6% growth in the fourth quarter. Revenues were down -6.1% in the EMEA region, -5.4% in North America and -1.9% in Central and South America. In terms of product categories, at constant exchange rates, sales of handbags and leather accessories were up +2.6% in the year, while footwear posted a -3.9% decrease despite recording revenue growth in the primary retail channel in the fourth quarter.

In its outlook, the Group said it will mainly focus on a communication aimed at enhancing the label, as well as optimising its processes and organisational structure, consistent “with the activities already started in the second part of 2018, aimed at creating the foundations for a sustainable growth in the medium term”.