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Sales at Ferragamo Down 17% in First Quarter

A view of Italian luxury fashion house Salvatore Ferragamo's logo at a store in Milan, Italy, March 6, 2024. REUTERS/Claudia Greco
A view of Italian luxury fashion house Salvatore Ferragamo's logo at a store in Milan, Italy, March 6, 2024. REUTERS/Claudia Greco
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Sales at Ferragamo Down 17% in First Quarter

A view of Italian luxury fashion house Salvatore Ferragamo's logo at a store in Milan, Italy, March 6, 2024. REUTERS/Claudia Greco
A view of Italian luxury fashion house Salvatore Ferragamo's logo at a store in Milan, Italy, March 6, 2024. REUTERS/Claudia Greco

Sales at Italian luxury group Salvatore Ferragamo fell 16.6% at constant exchange rates in the first quarter, the company said on Thursday.
"Over the quarter, our performance was impacted by continued volatility in the Chinese market, as well as a persisting weakness in wholesale and travel retail, further compounded by an unfavorable comparison", Chief Executive Marco Gobbetti said in a statement.

Revenues totaled 227 million euros ($244.5 million), below analyst expectations of 237 million euros according a LSEG consensus.

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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.