Ferragamo Flags Early 2021 Improvement After Full-Year Loss

Italian luxury goods group Salvatore Ferragamo said on Tuesday retail sales had grown in the first nine weeks of 2021, after posting its first full-year operating loss since listing in Milan 10 years ago because of the pandemic.

Earnings before interests and taxes (EBIT) recorded a €62 million ($73.68 million) loss compared with a €150 million profit in 2019 amid plummeting revenues and impairment charges Ferragamo booked on assets such as property and machineries.

Analysts on average had expected a €64 million EBIT loss for 2020, according to a Refinitiv consensus forecast.

The luxury shoemakers in January reported a 33 percent drop in 2020 sales, one of the worst performances in an industry grappling with shop closures to limit Covid-19 contagion and a lack of tourists.

The virus crisis has complicated efforts to revamp the brand by Chief Executive Micaela Le Divelec, whose term expires in April, fueling speculation of a possible management overhaul.

Two sources close to the matter said on Tuesday the situation at the group was still uncertain in that respect.

By Claudia Cristoferi; Editors: Valentina Za and Agnieszka Flak.