Ferragamo’s Sales Climb 7.4%

MILAN — Solid global growth, boosted by its handbags and leather goods accessories in both the retail and wholesale channels, lifted Salvatore Ferragamo SpA’s revenues by 7.4 percent in the 12 months ended Dec. 31.

The Florence-based group, which is listed on the Milan Stock Exchange, at the end of the day Thursday reported preliminary revenues rose to 1.43 billion euros, or $1.58 billion at average exchange, compared with the previous year. This included a negative hedging effect of 51 million euros, or $56.6 million. At constant exchange rate, sales grew 1.3 percent.

The group’s core market, the Asia-Pacific area, posted a 4 percent increase in sales and represented 36 percent of total revenues. In the last quarter, the region climbed 8 percent, despite a hard comparison base of 11 percent in the same quarter last year and the deterioration of business in Hong Kong.

The company’s retail channel posted 10 percent growth in China and a 10 percent rise also in the fourth quarter, an improvement compared with the third quarter, when sales were down 3 percent in the area.

Sales in Europe were up 7 percent in the full year and 9 percent in the last quarter despite the terrorist attacks in Paris during the period, which impacted tourism to the region.

North America was penalized by the strong dollar and a drop in tourism. While it registered a 9 percent increase in sales for the year, the region was down 2 percent at constant exchange.

Japan was up 14 percent for the year and 18 percent in the fourth quarter, also thanks to tourists traveling from China.

Revenues in Central and South America gained 12 percent.

At the end of December, the group had 391 directly operated stores, while the wholesale and travel retail channel comprised 271 third party-operated stores as well as a presence in department stores and high-end multibrand specialty stores.

For the year, the group’s own retail channel posted a growth of 7 percent. At constant exchange rates the increase was 1 percent and like-for-like revenues at constant rates were down 3 percent.

The wholesale channel grew 7 percent, thanks to the travel retail division.

Handbags and leather accessories posted 12 percent growth.

Full-year figures, including profits, will be released on March 17.

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