Florence, Italy—Helped by rising demand from Asia and foreign tourists buying its top quality, Italian-made footwear and accessories, Salvatore Ferragamo said last week its 2012 net profit grew 30% to 106 million euros (about $137 million). That was ahead of analysts’ average estimate for 97 million euros.
Net revenue grew 17% to 1.153 billion euros, (Revenue growth at constant exchange rates was 13 %.) The sales increase was on top of a 26% year-on-year increase from 2010 to 2011.
The company reported strong sales increases in all categories. “Especially remarkable were the increased revenues in footwear (+20%) and in handbags and leather accessories (+16%)” which accounted for about 75% of total sales.
Operating profit increased 25%. Pre-tax profit showed a 22% increase compared to 2011.
Asia Pacific was Ferragamo’s top market in revenue, hitting 420 million euros last year. Excellent sales growth was recorded also in North America, with an increase of 16%. Even Europe, where many economies are in the doldrums, posted excellent growth figures, up 21%.
“These results are further confirmation of the Group’s strategy which, continuing to focus on top quality products and on the ‘Made in Italy’ values, is deriving great success from the on-going implementation of the retail excellence program throughout the distribution network,” the company said.
As of Dec. 31, Salvatore Ferragamo Group operated 338 directly-operated retail stores while its wholesale and travel retail channel included 268 third-party operated stores, as well as presence in department stores and high-end multibrand specialty stores.