MILAN (Reuters) - Sales at Italian fashion group Salvatore Ferragamo SFER.MI fell by 18.9% in the three months to September, partially recovering from a 60% fall in the previous quarter as lockdown measures eased and demand in China rebounded.
The retail channel in the key Chinese market grew by 38.3% at constant exchange rates in the quarter and accelerated in October, the group said on Tuesday, adding that South Korea and Taiwan also performed well in the period.
The luxury leather goods brand sid the situaiton remaiend too uncertain to give a full-year guidance, only confirming “its commitment to reduce costs in order to limit the impact of the unfavorable dynamics of the current period”.
In the first nine months of the year, group revenues declined by 38.5% to 611 million euros ($721.41 million) and core earnings (EBITDA) decreased by 68% to 78 million euros.
At an operating level, Ferragamo posted a loss of 70 million euros in the nine months compared with an operating profit of 105 million a year ago; earnings before interest and tax came in at 4 million euros in the third quarter.
Analysts had expected revenues at around 608 million euros and earnings before interest, tax, depreciation and amortization (EBITDA) at 72 million euros, according to a Reuters poll.
For the third quarter alone, they had expected a 20% drop in sales.
($1 = 0.8470 euros)
Reporting by Claudia Cristoferi, editing by Silvia Aloisi
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