By Mauro Orru
Shares of Salvatore Ferragamo fell in Friday morning trading after the Italian luxury-goods firm posted third-quarter sales below analysts’ forecasts as the luxury-goods industry grapples with inflation and high interest rates that are squeezing consumer spending.
Shares fell more than 5% at market open and at 0730 GMT traded 2.4% lower at EUR11.63.
The company on Thursday reported 244 million euros ($258.3 million) in sales, down 16% on year in reported terms and 13% at constant-exchange rates. Citi analysts wrote in a note that sales came in slightly below their EUR246 million estimate and Visible Alpha consensus of EUR249 million.
A deterioration in third-quarter sales was expected, they said, pointing out that the brand seems to have suffered more than peers from macroeconomic headwinds, particularly in Europe and Asia.
After years of strong results fuelled by a surge in demand for luxury goods, the industry is grappling with slowing sales growth globally as customers reckon with inflation and high interest rates.
Write to Mauro Orru at [email protected]
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