Salvatore Ferragamo (SFER) H1 2024 earnings summary

Executive summary

• H1 2024 revenues declined 13% year-over-year to €523M, impacted by a challenging consumer environment, especially in Asia Pacific and wholesale channels.

• Net profit for H1 2024 was €6M, down 73% from €21M in H1 2023; EBIT fell to €28M from €47M; EBITDA was €117M, down 12%.

• DTC channel showed resilience, with positive retail trends in the US, Europe, Japan, and Latin America, attracting younger customers and increasing brand desirability.

• The company is focusing on top-line performance, profitability, audience expansion, and customer engagement through product innovation, marketing, CRM, and new store concepts.

Financial highlights

• Q2 2024 revenues were €296M, down 8% year-over-year, mainly due to volatility in Asia and weak wholesale.

• Gross profit margin remained stable at 72.1% of revenues, supported by a better DTC/WHL mix.

• Operating costs decreased 10% year-over-year due to cost control and normalized marketing expenses.

• Net financial position (adjusted) was €167M net cash at June 30, 2024, down from €278M a year earlier.

• CAPEX increased to €21M, mainly for POS and retail network renewals.

Outlook and guidance

• Management will continue to prioritize top-line growth and profitability, leveraging refreshed product offerings, full-funnel marketing, CRM initiatives, and enhanced customer experience.