MILAN — Salvatore Ferragamo SpA Thursday said that president Ferruccio Ferragamo would take on the chief executive officer’s role on an interim basis following the exit of Eraldo Poletto, as the company reported a drop in 2017 net profits.
In the 12 months ended Dec. 31, net earnings, including a negative minority interest of more than 4 million euros, were 114 million euros, marking a 42.4 percent decrease. Net profits were negatively impacted in the fourth quarter by about 13 million euros as a result of the new U.S. tax law.
The company said 2017 revenues declined 3.1 percent to 1.39 billion euros, compared with 1.43 billion euros in 2016.
Poletto joined Ferragamo from Furla in August 2016, after leading that brand’s expansion around the world for almost six years. Before Furla, he was president of strategic development and international business worldwide at Retail Brand Alliance Inc., parent of Brooks Brothers. Poletto exited Furla in November 2012 for a brief stint as CEO of Alfred Dunhill, but returned to the Italian accessories firm in spring 2013.
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Poletto succeeded Michele Norsa, who led the house for a decade and through its public listing in 2011.
One of Poletto’s first decisions at Ferragamo was to name a trifecta of designers rather than one single creative director, in the wake of Massimiliano Giornetti’s exit in March 2016. Poletto opted to appoint Paul Andrew, Fulvio Rigoni and Guillaume Meilland in charge of women’s shoes, women’s ready-to-wear and men’s RTW, respectively. In October last year, Rigoni exited the company, following a mixed response to his designs, and Andrew was charged with the women’s RTW collections as well. The company held its first coed runway show last week to unveil its men’s and women’s fall 2018 collections.