Florence, Italy—Salvatore Ferragamo reported today that its first half profit jumped 81% thanks to improved sales and its withdrawal from a joint venture with Ermenegildo Zegna.
The Italian footwear and accessories company posted a net profit of 83 million euros (about $107.1 million) for the six month ended June 30. Aiding in the improved results was Ferragamo’s decision to end its 47% share in ZeFer, a joint venture footwear and leathergoods created in 2002.
“The solid growth registered in the first six months of 2013 is even more relevant considering that in the same period of 2012 revenues had already increased by 23%,” the company said, noting it expects further profit and sales increases in the second half.
Net sales rose 11% at current exchange rates to 625 million euros.
Handbag Sales Up 15%
The Asia-Pacific region remained its top market, posting revenue growth of 13% to 240 million euros and representing about 38% of its total sales.
“A major contribution came, once more, from the retail channel in China, that recorded a revenue growth of 30% in second quarter, further confirming the strong trend registered in first quarter,” the company said.
European sales climbed 14% with help from tourists, while North America’s sales rose 15%. Japan was the only area posting a slight sales decrease, down 13% at the current exchange rate due to currency fluctuations in the yen.
Revenues in the Central and South America increased more than 7%, thanks to the positive contribution of the retail channel (+17%), while the wholesale performance was affected by the conversion of the points of sale in Brazil to directly-operated stores.
Sales in its retail distribution channel grew 8% to 354 million euros while its wholesale and travel retail channel had a 14% increase to 232 million euros on top of a 35% increase in the same period in 2012.
Among the product categories, footwear sales were up 11% and handbags and leather accessories grew 15%, together representing more than 76% of total sales. Fragrance also was a strong performer, up 13%.