2 JULY 29, 2020

BUSINESS COVID-19 Effects Hurt Salvatore Ferragamo’s

Europe showed a 51.7 percent decrease the Ferragamo Museum in Florence, H1 Top Line in revenues in the first half, which fell including an interactive tour led by to 85.7 million euros, accounting for personal guides. OThe lockdown and the lack 22.8 percent of the total. Sales in the Separately, earlier on Tuesday, of tourists’ flows affected the second quarter were down 71.9 percent organizers of the Venice Film Festival company’s sales, which fell at constant exchange rates, strongly confirmed that the event will go on as penalized by store closures and the lack of scheduled in a physical format, running 46.6 percent to 377 million tourists in the period. Sept. 2 to 12, and Luca Guadagnino’s euros in the period. These factors affected all regions. North feature-length documentary on founder BY LUISA ZARGANI America was down 54.4 percent to 69.7 Salvatore Ferragamo will be presented in million euros, representing 18.5 percent of the Out of Competition section. MILAN — The month of July is showing the total in the first half, with the second Guadagnino’s documentary traces improvements in all of Salvatore Ferragamo’s quarter plummeting 81.1 percent. Ferragamo’s artistic journey, while also markets, but the closure of stores during the The Japanese market registered a 37.4 exploring the history of Italy and America, coronavirus pandemic hurt the company’s percent decrease in revenues in the first the latter the country where he first top line in the first half of the year. half to 36.8 million euros, accounting for developed his business, creating shoes for The Florence-based luxury group 9.8 percent of the total, with the second the likes of Marilyn Monroe and Audrey reported preliminary sales on Tuesday quarter reporting a 56.1 percent drop. Hepburn. The film relates Ferragamo’s at the end of trading, which showed a Revenues in Central and South America path, starting his career as an apprentice 46.6 percent drop to 377 million euros in were down 54.6 percent to 17.4 million euros, shoemaker in Naples and then becoming the first six months ended June 30. This accounting for 4.6 percent of the total. In the the owner of the Hollywood Boot Shop in compares with 705 million euros in the second quarter they dove 89.2 percent. California, to his return to Italy, founding same period last year. By product category, sales of shoes, his namesake company in Florence. Sales in the second quarter fell 60.1 a core business for Ferragamo, were The film, said the Festival’s artistic percent, impacted by the pandemic, the down 46.4 percent to 159.5 million euros, director Alberto Barbera, is “fascinating, lockdown of commercial activities and the accounting for 42.4 percent of the total. disruptive and perfectly accomplished.” lack of international traffic. Revenues of leather goods and handbags “We were overjoyed to learn that the As of June 30, the company had 643 fell 43.6 percent to 158.5 million euros, film about my father’s life would be points of sales, including 389 directly representing 42.1 percent of the total. presented at the Venice Film Festival,” operated stores and 254 third-party- Ready-to-wear was down 47.3 percent to said Ferruccio Ferragamo, Salvatore’s operated stores in the wholesale and travel 19 million euros, accounting for 5.1 percent son. “It is an honor for me and my entire retail channels. of the total. family that a director of Luca Guadagnino’s In the first half, the retail distribution Fragrances registered a decrease of 66.3 caliber would take an interest in our family channel reported a 41 percent drop to percent to 14 million euros, representing history, adapting it for the big screen.” 260.6 million euros, representing 69.2 3.7 percent of the total, also impacted by Ferragamo’s autobiography inspired A look from percent of the total. In the second quarter, the performance of the travel retail. Guadagnino to develop the project starting Salvatore Ferragamo’s 2021 resort collection. retail revenues decreased 51.2 percent. As reported in May, Michele Norsa in 2017, reaching out to the Ferragamo Sales in the wholesale channel tumbled has returned to Ferragamo, joining the family. The director had access to the 56.4 percent to 110.8 million euros, board as director and executive deputy fashion brand’s archives, family anecdotes the refusal to put my name to any that do accounting for 29.4 percent of the total. chairman. Ferruccio Ferragamo helms and interviews, including with the not fit,” writes Ferragamo in the preface to In the second quarter, wholesale the company as chairman, but passed his late Wanda Miletti, Salvatore’s wife, who his autobiography. “Therefore please look revenues were down 75.7 percent, mainly executive proxies to Norsa, and Micaela died in October 2018. behind the story of the small, barefoot, penalized by the performance of the travel le Divelec Lemmi remains chief executive For three years, Fondazione Salvatore unlettered boy who became a famous retail channel and of the fragrances division. officer. Norsa first joined Ferragamo Ferragamo and Museo Salvatore shoemaker, and seek the pleasure you will The Asia Pacific area continued to be in 2006 and helped it expand globally, Ferragamo worked with the director and obtain from walking well.” the group’s largest market in terms of publicly listing it in 2011 in his role as ceo, screenwriter Dana Thomas. Research Guadagnino, whose movie “Call revenues, decreasing by 39.9 percent to and exiting in 2016. was also based on the tape recordings of Me By Your Name” received an Oscar 166.7 million euros, accounting for 44.3 Ferragamo launched a new web site Salvatore Ferragamo reading aloud some nomination for Best Picture and one for percent of the total. In the second quarter, during the lockdown in Italy at the end of the chapters of his autobiography, Best Actor in a Leading Role for Timothée sales in the area were down 35.3 percent of April, as part of the company’s recent which were restored for the occasion, Chalamet’s interpretation, in 2012 founded at constant exchange rates, benefiting increased drive into technology and social and the radio interviews he gave in the production company Frenesy Film from the positive performance of the retail media. The company unveiled a video Australia. In a teaser, Martin Scorsese specifically for taking on projects with channel in China, which recorded growth during Milan Digital Fashion Week earlier says that Ferragamo, born in 1898 in major fashion brands, and he has directed of 11.6 percent at constant exchange rates. this month about the values of the brand, Bonito, in Italy’s Campania region, or produced short films or commercials In particular, as of July 25, the group and in July introduced the Augmented moved to Naples, which at the time in for, among others Fendi, Giorgio Armani, had registered solid growth in directly Store 360, a virtual tour of its boutiques, “itself was another galaxy.” Ermenegildo Zegna, Salvatore Ferragamo, operated stores in Mainland China, Korea compatible with AR devices, and which “That has been my life’s work: striving Sergio Rossi, Cartier, Pomellato and Japan compared with July last year. allows consumers to buy online and visit to learn to make shoes that always fit and and Valentino.

BUSINESS aspect of the business, “our structures, our particularly hard following the collapse costs, our ways of working — from top to of international tourism, with quarantine bottom, leaving no stone unturned to ensure and social distancing measures further Facing ‘Toughest Year in we are fit for purpose and the future. This has denting consumption. involved reviewing all nonessential expenses Earlier this month, Harrods revealed Recent History,’ Selfridges as well as pausing projects and initiatives plans to lay off 14 percent of its staff and where prudent to do so,” the letter said. witnessed one of its retail partners, the mall At the same time, Selfridges also plans owner Intu Properties, file for bankruptcy. To Cut 450 Jobs to strengthen aspects of the business that Harvey Nichols would not put a number on have become even more important to the layoffs it was planning, but confirmed OAnne Pitcher sent a letter to weathered very hard times, “sadly the its customers since the pandemic. These that headcount would shrink. challenges ahead remain very real.” She include the digital channel, sustainability Selfridges’ plans to lay off staff come just staff on Tuesday outlining the added that cutting so many jobs was “the practices and experiences. six months after the store touted healthy store’s post-pandemic plan, and toughest decision” the store has ever had “Nobody imagined when we started the Boxing Day sales and a great Christmas warning “recovery will be slow.” to make. year that things would unfold like this and season, with sales rising 5 percent across The pandemic, Pitcher said, has forced lead us to having to make such momentous all channels. BY SAMANTHA CONTI change “and caused us to rethink so many decisions. It is a huge responsibility and On Boxing Day last December, the aspects of our lives and will continue to do I appreciate how incredibly unsettling traditional start of the holiday sales in LONDON — First Harrods, then Harvey so as we adapt and respond to a new and receiving this news today must feel, Britain, Selfridges said it was trading on Nichols, and now Selfridges. evolving reality.” prompting all sorts of thoughts and a par with last year, the store’s historic, Anne Pitcher, Selfridges group managing Recovery will be slow at Selfridges, with emotions,” Pitcher said. biggest trading day. director, said Tuesday in a long letter to sales this year forecast to be “significantly less” Selfridges is the latest big British fashion The store’s highest-performing staff that 14 percent of employees, or 450 than they were in 2019. “It will, without doubt, retailer to announce layoffs, after Harrods departments were women’s designer jobs, are likely to be slashed as the store be the toughest year we have experienced in and Harvey Nichols. Overall, the coronavirus accessories, women’s and men’s shoes, girds for tougher times ahead in the wake of our recent history,” Pitcher said. pandemic has laid waste to high-street stores beauty, kids’ wear and toys. As reported, COVID-19. The store needs to make “fundamental and jobs at every level of the market. the store had recently welcomed the first Pitcher said, while the team had already changes,” and has been looking at every London’s luxury stores have been hit European branch of FAO Schwarz.