Fiscal quarters ended March 31.
Source: Company reports
1Q16 RESULTS
Milan-listed luxury leather goods brand Salvatore Ferragamo reported 1Q16 revenues that were down 1.8%, to €321.5 million, versus the consensus estimate of €324.0 million recorded by S&P Capital IQ. However, an increase in the gross margin helped the company beat consensus on the bottom line.
Operating profit rose by 4.5% year over year, to €49.0 million, and net profit climbed by 6.3%, to €33.8 million, versus consensus of €29.9 million. The company did not report earnings per share.
Revenue Performance by Geographical Area
- Asia-Pacific revenues were down 3%, or down 2% at constant exchange rates, mainly due to declines in Hong Kong and Macau.
- Europe revenues fell by 4%, and were hit by lower tourist flows due to terrorism.
- North America revenues were up 1%, but down 4% at constant exchange rates.
- Japan revenues rose by 2%, and were flat at constant exchange rates.
- Central and South America revenues were flat, having been impacted by currency depreciations; revenues in the region were up 8% at constant exchange rates.
Revenue Performance by Segment
- Retail revenues were down 4% at current and constant exchange rates.
- Wholesale revenues were up 1%, or flat at constant exchange rates.
FY16 OUTLOOK
The company offered no guidance. For FY16, analysts expect revenues to rise by 3.7%, to €1.48 billion, and for net profit to grow by 9.7% and EPS to grow by 9.8%, to €1.12.
