Salvatore Ferragamo: shares flat after lackluster sales

(CercleFinance.com) - Italian luxury house Salvatore Ferragamo reported lower-than-expected 2017 sales, although this did not seem to impact the shares that much today in Milan.


The Florence-based group said consolidated revenues for 2017 decreased by 3.1% to 1.39 billion euros, down 1.4% at constant exchange rates.

The consensus was looking for slightly more at 1.41 billion euros.

Following this "disappointing" release, Bryan Garnier cut its fair value on the stock from 22.1 euros to 21.4 euros, while maintaining its "neutral" rating.

"We still think that it is too soon to invest in the group as visibility on the short term is far too poor," the broker said. "The brand needs more time to recover positive momentum," it added.

The shares listed on the Borsa Italiana market were up slightly (+0.2%) at 22.7 euros after this update. The stock has lost 7% over the past year.

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