Salvatore Ferragamo: shares rise despite quarterly loss

(CercleFinance.com) - Salvatore Ferragamo said it turned into a loss in the first quarter, although the shares of the Italian luxury fashion house still rose on Wednesday morning in Milan.


The shoe maker reported a net loss of 41 million euros for the past quarter, compared to a profit of 11 million euros a year ago, as revenues dropped by 30% to 222 million euros.

The closely watched like-for-like retail sales decreased by 31.5%.

Similar to other luxury brands, the Covid-19 crisis has severely hit group sales, as 50% of its stores remained closed in March.

Ferragamo, which has suspended its dividend, said in a statement that it cannot formulate reliable sales forecasts for the year and that it is working on "concrete" actions to contain expenses and investments.

The stock of the Florence-based luxury company is currently up 0.9%.

Copyright (c) 2020 CercleFinance.com. All rights reserved.