MILAN, Nov 14 (Reuters) - Italian luxury goods maker Salvatore ferragamo belt outlet could have its work reduce out in 2018, its CEO mentioned on Tuesday after the company reported a 25 p.c drop in 9-month core earnings.
Eraldo Poletto, who took over as CEO from longstanding Michele Norsa final year, mentioned in February that income would enhance at twice the market price in the years between 2017 and 2020, confident margins would rise too.
But since then, core revenue margins at the Florence-based mostly group have been falling year-on-year, cheap ferragamo Shoes firm statements show, hit by the group’s planned clearance of stock merchandise.
"Next yr goes be one other year of onerous work," Poletto instructed analysts in a publish-outcomes name.
The destocking is aimed toward freeing up space for new products because the group is pushing to make the model extra contemporary and appealing, particularly to a rising number of young clients.
ferragamo womens shoes, recognized for its elegant pumps and ballerina footwear, has repeatedly said that 2017 was a "period of transition".
In the primary nine months of the 12 months, earnings before interest, taxes, depreciation and amortisation (EBITDA) were down 25 % to 162 million euros ($191 million), according to forecasts, in keeping with information from Thomson Reuters.
Revenues have been principally flat at simply over 1 billion euros, whereas same store gross sales in the period fell 1 p.c.
The group nearly doubled gross sales within the six years to 2015, and internet revenue rose threefold. However final 12 months gross sales rose simply 1 % and had been down 2 percent at fixed currencies.