(Alliance News) - Salvatore Ferragamo Spa reported Wednesday that it ended 2023 with a net profit of EUR26 million, down 60 percent from EUR65 million in 2022.

Revenues fell 7.6 percent to EUR1.16 billion from EUR1.25 billion, "at a time when the company is proceeding with the transition of its product offerings while continuing to optimize its distribution network amid greater demand uncertainty in the luxury sector," the company said-

Gross margin increased to 72.6 percent from 72.0 percent a year earlier, with Ebitda down 16 percent to EUR252 million from EUR299 million a year earlier.

Operating income fell 44% to EUR72 million from EUR128 million, reflecting the planned increase in investments, mainly in marketing and communications.

Net financial position is EUR224 million positive compared to EUR371 million as of Dec. 31, 2022, and includes the acquisition of minority interests in joint ventures in Greater China.

Salvatore Ferragamo's board proposed the distribution of a dividend of EUR0.10 per share compared to EUR0.28 paid last year.

Marco Gobbetti, chief executive officer and general manager of Salvatore Ferragamo, said, "In 2023, we have made good progress in our strategic priorities regarding brand, product, communication, and distribution network. We have improved the quality of sales and invested in strengthening the brand and customer relationship, seeing encouraging signs from new product sales."

"We will continue to work on the full development and optimization of the product offering, fueling consumer desirability, interest and engagement through targeted and dimpact communication, including maximizing the potential of all digital channels. We will also continue the optimization of the distribution network, simultaneously accelerating the introduction of the new store concept. Despite the impact of the current market environment on the timing of initial forecasts, we continue to pursue our growth ambitions, sustaining profitability through a constant focus on sales quality and a disciplined focus on costs."

Salvatore Ferragamo's stock closed Wednesday up 0.2 percent at EUR12.11 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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