Salvatore Ferragamo Faces Sales Slump Amid Industry Challenges

Salvatore Ferragamo, the renowned Italian luxury-goods firm, experienced a dip in its shares in Friday morning trading due to lower-than-expected third-quarter sales. The luxury-goods industry is currently grappling with the impact of inflation and high interest rates, which have resulted in reduced consumer spending.

At market open, shares plummeted more than 5% and continued to trade 2.4% lower at EUR11.63 as of 0730 GMT.

During the third quarter, the company reported sales of 244 million euros ($258.3 million), marking a decrease of 16% compared to the previous year in reported terms and 13% at constant-exchange rates. Analysts from Citi noted that the sales figure fell slightly below their estimate of EUR246 million and the Visible Alpha consensus of EUR249 million.

It was anticipated that there would be a decline in third-quarter sales, particularly as Salvatore Ferragamo appears to have been more affected by macroeconomic headwinds, especially in Europe and Asia, when compared to its peers.

The luxury-goods industry, which had enjoyed robust growth fueled by increasing demand for luxury products, is now experiencing a slowdown in sales growth worldwide as customers face the challenges posed by inflation and high interest rates.