Sales beat forecasts at Ferragamo, shares rally

(Sharecast News) - Shares in Italy's Salvatore Ferragamo kicked higher on Friday, after quarterly revenues at the luxury brand beat forecasts.

Group total revenues came in at �221m in the three months to 30 September, up 1.7% at constant exchange rates and comfortably ahead of consensus for �208m.

Ferragamo - best known for its high-end leather goods, including shoes and handbags, as well as fashion and fragrances - attributed the uptick to a positive performance in its direct-to-consumer channel. DTC net sales jumped 4.4%, helping partially offset a softer performance in wholesale.

Florence-based Ferragamo has been hit hard by the various issues facing the luxury sector, including inflation, weak consumer demand in key markets such as China and Donald Trump's trade war.

It acknowledge that conditions in Asia remained challenging, although said it was starting to see improvements. Sales in Asia Pacific fell 10.5% in the third quarter. However, in North America they jumped 15.6%.

Ferragamo said: "Since the second quarter, the group has undertaken and completed a comprehensive diagnostic assessment of the business to ensure full alignment and coherence across design, production, communication and distribution channels.

"While conscious that the geopolitical and macroeconomic environment remains uncertain, we will continue to deploy our strategic actions.

"We remain confident that these efforts will become more visible in the coming quarters, supported by the gradual roll out of new product collections."

As at 1130 BST, shares in the Ferragamo were trading 12% higher.

The company is currently without a chief executive, after Marco Gobbetti left in March after three years at the helm.

Ferragamo said on Friday that the search for Gobbetti's replacement was continuing. It is also looking for a new financial chief, after Pierre La Tour resigned last month.