By Katie Smith | 25 March 2013
Italian luxury fashion business Salvatore Ferragamo Group has seen its full-year profit jump 21% on the back of increased demand in Central and South America.
Net profit reached EUR125m (US$162.m) for the year to 31 December, compared to EUR103m the same period the year before.
At current exchange rates, total revenue increased 17% to EUR1.15bn from EUR986m the prior year, with significant growth in all geographical areas, product lines and distribution channels. Revenue was up 13% at constant exchange rates.
In North America, revenue rose 16% to EUR256.9m, almost entirely achieved on a like-for-like basis, while revenues in Central and South America surged 27% to EUR52.2m. Europe saw revenue increase 21% to EUR289.4m.
Asia Pacific delivered a 17% increase in revenue to reach EUR420m, representing 36% of the company's total growth. The retail channel was a major contribution, which saw revenue rise 20%.
Meanwhile, Japan saw revenue climb 5% to EUR134.2m.
By channel, the retail distribution channel saw revenue grow 14% to EUR753m, while wholesale and travel retail posted 22% growth to reach EUR381m.
"The business trend, recorded in the first months of the current year, justify expectations for growth also throughout 2013 both for revenue and net profit, in the absence of severely unfavourable market conditions," the company said.Â
In addition, Salvatore Ferragamo has signed an agreement to dispose of its interest in the ZeFer joint venture with Ermenegildo Zegna and the Zegna footwear and leather goods brand. The deal will be effective from 15 April.
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