Salvatore Ferragamo: shares fall after disappointing results

(CercleFinance.com) - Italian luxury leather group Salvatore Ferragamo said on Wednesday that over the first nine months of 2017 its revenue decreased by 0.
9% to around 1 billion euros, below the consensus.

Sales in the wholesale channel, which includes travel retail, fell by 4.7% in the first nine months of the year, largely due to destocking effects.

The Florence-based company's net profit reached 79 million euros over the period, down 28.3% from 110 million euros at 30 September 2016.

In a research note sent to clients, Bryan Garnier analysts cite "poor" results," "even worse than expected," and have cut their fair value on the stock from 22.3 euros to 21.5 euros, while maintaining a "neutral" stance on the shares.

Meanwhile, UBS - which also has a "neutral" rating on Salvatore - has cut its target price from 24 euros to 22 euros, lamenting a "lack of clear guidance".

Analysts at Exane share this viewpoint and have trimmed their target price from 24 euros to 23 euros, while confirming their "neutral" rating on the shares.

"Management did not provide guidance on 2017 EBITDA or make any comment on consensus expectations. The CEO sees 2018 as "another year of hard work," the French broker writes in a research report.

Shares in Salvatore Ferragamo are currently down 5.2% at 20.7 euros on Italy's FTSE MIB index.

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