Salvatore Ferragamo Group Net Profit Growth Hongkong Macao Weak Performance

Net profit and sales growth in the Salvatore Ferragamo 2015 fiscal year were recorded, but sales in the Asia Pacific region fell by 3.2%, due to the weak performance in Hongkong and Macao and the complex environment in the mainland of China.

In an analyst oriented conference call, Michele Norsa, the group's chief executive, said that this year's initial performance was not particularly good, partly due to continued volatility in the financial markets and the timing of the Lunar New Year and passenger movements in China.

In the coming year, the group will continue to be cautious.

Like many others.

Similarly, Salvatore Ferragamo is facing the complex environment of the Chinese market, but the group remains optimistic and believes that the overall atmosphere of the domestic market is improving and will be better recorded.

For the whole year, group net profit increased by 6.7% to 174 million 500 thousand euros, mainly driven by strong sales of leather goods and the performance of European stability, even though operating costs increased over last year.

The total revenue increased by 7.4% to 1 billion 430 million euros.

At fixed exchange rates, sales increased by 1.4%.

Net debt fell sharply from 49 million euros to 10 million euros this year, mainly due to a nearly 40% increase in net operating cash flow.

By region,

It is the largest market in the group, which accounts for 36% of the group's total revenue and its sales increased by 4%.

At a fixed exchange rate, it fell by 3.2%.

The second largest market is Europe, which accounts for 27% of the group's total revenue, and its sales growth is 6%.

North America accounted for 23% of the group's total revenue and sales increased by 9.6%.

At a fixed exchange rate, it fell by 1.6%.

Japan accounted for 9% of the total income of the group, with an increase of 14.2% and a 15% increase under the fixed exchange rate.

As far as Asia is concerned, Hongkong's performance is still negative due to the decrease of tourists from mainland China, and Macao is also suffering from difficulties.

But at the same time, Japan and South Korea attract more mainland Chinese shoppers.

In Europe, France has been at a disadvantage since the terrorist attacks of November, while Italy, Milan and Florence have been doing well.

Mexico, Australia and Canada have been fast growing markets.

Group CEO Michele Norsa believes that with the Canadian visa easy access policy, more Chinese tourists travel to Canada.

Vancouver and Toronto have seen a large influx of Asians.

According to the channel, tourism retail continued to grow, compared with the 5.4% growth rate recorded in 12, the sales increased by 7.1% in January.

Other markets, such as Dubai, recorded double-digit growth.

The growth of tourism retail sales led to a rise in wholesale channel revenue.

By category, shoe sales accounted for nearly half of the group's turnover, an increase of 5.7%; a fixed exchange rate of 1%.

Leather products accounted for 1/3 of the group's turnover, an increase of 12%, and a 6.4% rise at fixed exchange rates.

Salvatore Ferragamo group has been focusing on the development of leather products and small leather products, because they can generate good profit margins.

In the past five years, men's wear and women's shoes have been doing well.

But in the US market, Salvatore Ferragamo may lose some.

Because most of the shoe business in this area is wholesale, department stores have not performed well.

But the group has planned to launch a series of strategies for shoe business, including the introduction of children's clothing series and sports shoes for young girls.