Ferragamo Shares Boosted after Confirmation of 2024 Forecasts

A view of Italian luxury fashion house Salvatore Ferragamo's logo at a store in Milan, Italy, March 6, 2024. (Reuters)
A view of Italian luxury fashion house Salvatore Ferragamo's logo at a store in Milan, Italy, March 6, 2024. (Reuters)
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Ferragamo Shares Boosted after Confirmation of 2024 Forecasts

A view of Italian luxury fashion house Salvatore Ferragamo's logo at a store in Milan, Italy, March 6, 2024. (Reuters)
A view of Italian luxury fashion house Salvatore Ferragamo's logo at a store in Milan, Italy, March 6, 2024. (Reuters)

Ferragamo shares jumped on Tuesday after the Italian luxury group confirmed its full year profitability forecast, despite the announcement of a likely impairment writedown in the range of 70-90 million euros.

The group confirmed the guidance at a time of uncertainty for the luxury industry, a Milan-based trader said. He added that the writedown has only an accounting impact.

Shares in Ferragamo were up almost 6% at 0915 GMT.

Ferragamo's stock has lost almost half of its value in the last year and its market capitalization slipped below 1 billion euros ($1.05 billion).

Purchases are driven by attractive valuations, with the stock close to an all-time low, another trader said.

Salvatore Ferragamo said late on Monday that an impairment test would likely result in writedowns of 70-90 million euros, mainly deriving from store lease agreements.

The group, which is struggling with a turnaround under CEO Marco Gobbetti, added that these impairment assumptions will not result in any financial payout and it confirmed the group's operating profit forecasts.

Analysts at Equita, who rate the stock as "Hold", added a note of caution after the statement.

"The need for these write-downs signals less visibility on the prospects of improvement of the group's results in the medium term," they said.

Ferragamo didn't provide detailed full year guidance, but in October it said that the operating profit this year would be at the lowest end of analyst estimates, meaning around 30 million euros.



Chinese Plus-size Influencer Spreads Body Positivity through Fashion

This photo taken on November 14, 2024 shows plus-size clothing brand owner and influencer Amanda Yao live-streaming from her workshop in Guangzhou, in China's southern Guangdong province. (Photo by GREG BAKER / AFP)
This photo taken on November 14, 2024 shows plus-size clothing brand owner and influencer Amanda Yao live-streaming from her workshop in Guangzhou, in China's southern Guangdong province. (Photo by GREG BAKER / AFP)
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Chinese Plus-size Influencer Spreads Body Positivity through Fashion

This photo taken on November 14, 2024 shows plus-size clothing brand owner and influencer Amanda Yao live-streaming from her workshop in Guangzhou, in China's southern Guangdong province. (Photo by GREG BAKER / AFP)
This photo taken on November 14, 2024 shows plus-size clothing brand owner and influencer Amanda Yao live-streaming from her workshop in Guangzhou, in China's southern Guangdong province. (Photo by GREG BAKER / AFP)

Surrounded by racks of colorful dresses and blazers in China's manufacturing hub of Guangzhou, plus-size clothing brand owner and influencer Amanda Yao is on a mission to promote body positivity.

She is part of a small but growing number of women in China challenging restrictive beauty standards, including thinness, pale skin and childlike features.

Online, a frequently circulated saying claims that "there are no good women over 50 kilograms (110 pounds)", while recent social media challenges have women squeezing into children's clothes or showing off the coins they can stack on their collarbones.

Yao makes fashionable, high-end clothing for plus-size women, offering a vibrant contrast to the poorly cut offerings normally available in "slimming" dark colors.

"I want my customers to have clothes that express who they are inside, rather than soulless pieces that exist only to make them look thinner," the 35-year-old told AFP.

When it comes to clothing, most Chinese retailers focus on smaller sizes and "think that larger people don't need fashion and don't need beautiful clothes", Yao said.

"But we have work, we have families, we have respectable lives, and we also need some fancy clothes sometimes."

To promote her online store, Yao posts pictures of her outfits on the Instagram-like Xiaohongshu app, often sporting leggings and tight-fitting workout tops she wears to climb the hills near her office.

"Reject body anxiety," Yao, who openly talks about weighing 100 kilograms, wrote in one post to her more than 15,000 followers.

"So what if I wear a strappy top and have big arms?"

- Embracing color -

Yao began selling plus-size clothing four years ago after returning to China from the United Kingdom, where she had worked for several years.

"I found it especially hard to buy clothing here," she told AFP.

Items ordered online often failed to match sellers' photos, and Yao grew sick of "very ugly clothes".

In her Guangzhou office and showroom this month, Yao showed off a Chinese-style pink silk jacket from her brand Yue Design, while modelling a bright green cardigan and skirt set.

"I never post photos of myself wearing black online," Yao said.

By avoiding the color traditionally recommended for larger women, she has also encouraged some of her customers to embrace brighter, more cheerful designs.

While clothing options for plus-size shoppers remain limited, some Chinese brands have taken steps to be more inclusive in recent years.

Lingerie brand Neiwai and loungewear company An Action A Day have featured larger models in their ads, though most of their items only cater to women up to 70 kilograms.

- Body scrutiny -

Aside from Yao, other influencers in China have found an audience eager for their posts about self-acceptance and photos of themselves enjoying clothing and food, despite the pressure to diet.

On Xiaohongshu, the hashtag "reject body anxiety" appears in nearly 200,000 posts.

But this is still a marked deviation from most body image content on Chinese social media.

One recent popular format involves someone posting a photo of themselves and asking viewers for makeover tips.

These posts often draw extreme scrutiny from commenters, who pick on people for flaws as specific as having a square jaw rather than the "ideal" pointed chin.

With constant exposure to idealized body types, people "start to conflate the meaning of their own worth with what they look like," Stephanie Ng, who runs Hong Kong-based mental health organization Body Banter, told AFP.

That has dangerous consequences, including extreme dieting and eating disorders, Ng said.

There is little official data on eating disorders in China, but the prominent Shanghai Mental Health Center reported an increase from eight such patients in 2002 to 3,000 in 2021, according to state broadcaster CGTN.

Even though Yao has built a loyal following, her posts can also attract cruel comments.

"Daring to post an ugly photo showing your ring-shaped torso fat doesn't equal confidence," one commenter wrote under one of Yao's workout posts.

She told AFP that the criticism has only made her more determined.

"I want to help women who are feeling self-hatred to look at themselves in a new way," she said.