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    SFER   IT0004712375


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Salvatore Ferragamo S p A : 2021.09.07 Press Release_1H2021

09/07/2021 | 11:52am EDT


Salvatore Ferragamo S.p.A.

The Board of Directors approves the Consolidated Half Year Financial Report as of 30

June 2021

Revenue up 44.2% vs. 1H 2020, Operating Profit (EBIT) at 66 million Euros, Net Profit 33

million Euros and Positive Net Financial Position5 of 205 million Euros

US, Mainland China and Korea lead the strong improvement in profitability

Retail Revenues in July and August close to pre-Covid levels

  • Revenues: 524 million Euros (+44.2% vs. 363 million Euros at 30 June 2020, +46.2% at constant exchange rates2)
  • Gross Operating Profit (EBITDA1): 144 million Euros (vs. 32 million Euros at 30 June 2020)
  • Operating Profit (EBIT): 66 million Euros (vs. -72 million Euros at 30 June 2020)
  • Net Profit: 33 million Euros (vs. -86 million Euros at 30 June 2020)
  • Net Financial Position5: positive for 205 million Euros (vs. 58 million Euros positive at 30 June 2020)

During the same meeting the Board of Directors has:

  • Granted all powers of ordinary administration to the Executive Vice Chairman Michele Norsa
  • Launched the Treasury Shares purchasing plan


Florence, 7 September 2021 - The Board of Directors of Salvatore Ferragamo S.p.A. (MTA: SFER), parent company of the Salvatore Ferragamo Group, one of the global leaders in the luxury sector, in a meeting chaired by Leonardo Ferragamo, examined and approved the Half Year Financial Report as of 30 June 2021, drafted according to IAS/IFRS international accounting principles (Limited Audit).

To be noted that all performance measures are reported excluding the Fragrance business both from the data relating to 2021 and from the 2020 comparative data, as the licensing of the business, as announced in the press release as of July 7th 2021, is reclassified in the "Non-current Assets Held for Sale and Discontinued Operations", in accordance with the accounting principle IFRS 5.

Notes to the Income Statement for 1H 2021

Consolidated Revenue figures

As of 30 June 2021 the Salvatore Ferragamo Group reported Total Revenues of 524 million Euros up 44.2% at current exchange rates (+46.2% at constant exchange rates2) vs. the 363 million Euros recorded in 1H 2020. Revenues in 2Q 2021 registered a 91.3% increase at current exchange rates (+90.5% at constant exchange rates2).

The increase in Revenues has been achieved despite the permanence, in some countries, of lock- downs of the commercial activities, bans and restriction on international traffic, due to the Covid- 19 pandemic. At 30 June 2021, the Group is operating with 53% of retail stores at full capacity.

Revenues by distribution channel3

As of 30 June 2021, the Group's Retail network counted on a total of 639 points of sales, including 398 Directly Operated Stores (DOS) and 241 Third Party Operated Stores (TPOS) in the Wholesale and Travel Retail channel, as well as the presence in Department Stores and high-levelmulti-brand Specialty Stores.

In 1H 2021 the Retail distribution channel posted consolidated Revenues up 46.3% (+49.4% at constant exchange rates2).

In 2Q 2021 Retail Revenues increased by 81.4% (+82.9% at constant exchange rates2), with four Areas (Greater China, North America, Latin America and Korea) exceeding the pre-Covid Revenues level.

The direct E-commerce channel continues to consolidate a solid growth at 30 June 2021, with Revenues up 70.6% (+78.3% at constant exchange rates2).

In 2Q 2021 the direct E-commerce increased by 65.8% at constant exchange rates2.


The Wholesale channel registered an increase in Revenues of 41.1% (+40.5% at constant exchange rates2) vs. 1H 2020.

In 2Q 2021 Wholesale Revenues were up 134% (+122% at constant exchange rates2) vs. 2Q 2020, despite the still challenging situation of the Travel Retail channel, due to the international travel restrictions as a consequence of the pandemic.

Revenues by geographical area3

The Asia Pacific area is confirmed as the Group's top market in terms of Revenues, up by 35.2% (+34.0% at constant exchange rates2) vs. 1H 2020.

In 1H 2021 the retail channel in Greater China posted a Revenue growth of 45.0% vs. 1H 2020 at constant exchange rates2. In particular, the retail channel in China posted an increase in Revenues of 47.4% vs. 1H 2020 at constant exchange rates2 and Korea also posted a solid growth trend in 1H 2021 (+21.9% vs. 1H 2020 at constant exchange rates2).

The Japanese market registered a 13.4% increase in Revenues (+18.2% at constant exchange rates2) in 1H 2021, with a positive trend in 2Q 2021, (+55.0% at current exchange rates and +66.9% at constant exchange rates2) vs.2Q 2020.

Overall the Asian continent represents currently over 50% of total Group's revenues in 1H 2021.

EMEA, still penalized by lock-downs of stores and mainly by the limited tourists' flows in 1H 2021, posted an increase in Revenues of 22.2% (+20.5% at constant exchange rates2) vs. 1H 2020, with 2Q 2021 positive (+113% at constant exchange rates2) vs. 2Q 2020.

North America recorded a Revenue increase of 103% (+122% at constant exchange rates2) in 1H 2021 vs. the same period of last year. In 2Q 2021 Revenues more than quintupled vs. 2Q 2020.

Revenues in the Central and South America in 1H 2021 were up 65.6%, (+73.7% at constant exchange rates2). Revenues increased by 712% at 16 million Euros in 2Q 2021 from 2 million Euros posted in 2Q 2020.

Revenues by product category3

All main product categories reported an increase in 1H 2021 vs. the same period of last year, with shoes and leather categories representing respectively 43% and 45% of the turnover in the first half.

Gross Profit

In 1H 2021 the Gross Profit increased by 62.8.% to 361 million Euros. Its incidence on Revenues was up 790 basis points, moving to 68.9%, from 61.0% of 1H 2020, mainly thanks to the increase


of full price sales, to a more positive geographical, channel and product mix and also to lower provisions for obsolescence.

Operating Costs

In 1H 2021 Operating Costs amounted to 295 million Euros at current exchange rate, substantially stable (+0.6%) vs. 1H2020 (+4.0% at constant exchange rates2).

In 2Q 2021, Operating Costs increased by 13% due to higher variable costs and also to a lower contribution from positive extraordinary components, such as the Government subsidies to labor and rents' relief.

Gross Operating Profit (EBITDA1)

The Gross Operating Profit (EBITDA1) amounted to 144 million Euros, from 32 million Euros of 1H 2020, with an incidence on Revenues of 27.5% from 8.8% in 1H 2020.

Operating Profit (EBIT)

The Operating Profit (EBIT) was positive for 66 million Euros vs. 72 million Euros negative (-62 million Euros net of the effect of the impairment test) in 1H 2020.

Profit before taxes

The Profit before taxes in 1H 2021 was positive for 56 million Euros vs. 90 million Euros negative in 1H 2020.

Net Profit for the Period

The Net Profit for the period, including the Minority Interest, was positive for 33 million Euros vs. 86 million Euros negative in 1H 2020.

The 1H 2021 Group Net Profit was positive for 31 million Euros vs. 82 million Euros negative in 1H 2020.


Notes to the Balance Sheet for 1H 2021

Net Working Capital4

The Net Working Capital as of 30 June 2021 decreased by 16.4% to 298 million Euros, from 357 million Euros as of 30 June 2020. In particular the Inventories were down 19.8% (-21.6% at constant exchange rates and -15.3% at constant exchange rates excluding the Fragrance business), mainly thanks to an improvement in operational efficiency.

Investments (CAPEX)

As of 30 June 2021, Investments (CAPEX) was 13 million Euros, up by 19.6% vs. 11 million in 1H 2020, due to more investments in the retail network and in the digital channel.

Net Financial Position

The Net Financial Position adjusted5 at 30 June 2021 was positive for 205 million Euros, vs. to 58 million Euros positive as of 30 June 2020. Including IFRS16 effect, the Net Financial Position at 30 June 2021 is negative for 357 million Euros.

Fragrance Business

All performance measures of the Income Statement are reported, in accordance with the accounting principle IFRS 5, excluding the Fragrance business both from the data relating to 2021 and from 2020 comparative data, following the exclusive licensing agreement to Inter Parfums Inc., whereby an exclusive and worldwide license will be granted for the production and distribution of Ferragamo brand perfumes, as announced in the press release as of July 7th 2021.

In 1H 2021 the Fragrance business reported Revenues up 54.6%, at 20.4 million Euros vs 1H2020 and EBIT amounted to -3.8 million Euros vs. -2.8 million Euros in 1H 2020.

Performance in July and August

The months of July and August are continuing to show a solid growth in Revenues in directly operated stores in the United States, China, South Korea and Latin America, vs. the same period of 2019. The worldwide retail performance is therefore close to pre-Covid levels.


This is an excerpt of the original content. To continue reading it, access the original document here.


Salvatore Ferragamo S.p.A. published this content on 07 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 September 2021 15:51:05 UTC.

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Number of Analysts 17
Last Close Price 18,20 €
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Managers and Directors
Alessandro Corsi Chief Financial Officer
Leonardo Ferragamo Non-Executive Chairman
Umberto Tombari Independent Non-Executive Director
Patrizia Michela Giangualano Independent Non-Executive Director
Anna Zanardi Cappon Independent Non-Executive Director
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