US drives Ferragamo sales

Italian fashion house Salvatore Ferragamo Italia SpA has reported an 11 percent rise in sales last year to €640 million. At a press conference late last week, chief executive Michele Norsa said that US sales had gained 25 percent, thanks to buoyant luxury sales during the holiday period. Top performers were accessories and men's wear, which also helped drive sales. Meanwhile, apparel sales “softened for climatic reasons”, but Norsa emphasized that the business was nevertheless growing. He added that the company could possibly go public next year.

Despite the good cheer brought on by last year's results, Norsa remains cautious about the coming year, citing the strength of the euro against the dollar and the yen. To balance the effect on margins, Ferragamo will raise its US prices for fall by an average of 5 percent, said Hervé Martin, Ferragamo's product general manager.

The company's real worry, however, is Japan . “I'm more worried about Japan because it's very insulated and it doesn't have tourism,” said Norsa. Japanese are big buyers abroad, but a weak yen may affect this. Ferragamo plans to grow the business in new markets like Mexico and will open between 40 and 50 stores this year.

www.salvatoreferragamo.it
15 January 2007

Norsa heads up Ferragamo, IPO in sight

Florence-based fashion house Ferragamo has appointed Michele Norsa as chief executive and general manager of the group controlled by Salvatore Ferragamo Italia. Norsa joins the family company from Valentino SpA, where he was chief executive as well as being general manager of Valentino Fashion Group’s licensed brands, M Missoni and Marlboro Classics. “The (family’s) fourth generation is up next, and we did not want for these young shareholders to be restrained, without the chance to sell or buy (shares). We want a company with a broader and more fluid breadth,” managing director Ferruccio Ferragamo told WWD. He will now become chairman of SFI.

The company is also planning an IPO, which Wanda Ferragamo said would happen in the “not too distant future” and Norsa will be instrumental in the process. His experience with Marzotto’s stock market spin-off of its fashion businesses into the Valentino Fashion Group will be crucial. “Norsa is an expert, well-prepared and knowledgeable, someone I’ve know for years, and I really admire him” said Ferruccio, who added that there was no rush to the stock market. Meanwhile, Wanda – Salvatore Ferragamo’s widow – will continue on as chairman of Ferragamo Finanziaria, the family-owned company that controls SFI, and will become honorary chairman of SFI.

Norsa spoke in superlatives about the company he is joining, saying it was “a beautiful company, a beautiful brand and a beautiful family.” He has plenty of experience working for families, like the Benettons and Marzottos. “The one thing a manager can choose is the quality of the people he works with,” he said, adding that Ferragamo has “extraordinary brand awareness” and “tremendous potential” as well as “a history, a heritage and a message that will contribute to the success of the brand in emerging markets.”

In January, Ferragamo reported consolidated net profits of €39.2 million on a sales increase of 12 percent to €575 million. The company predicted double-digit growth for this year, reporting strong momentum in the US and Asia. The results do not include the 2004 and 2005 sales of Ungaro, which the company sold to San Francisco entrepreneur Asim Abdullah last year. Ferragamo now has 450 points of sale, of which 221 are directly-owned stores. This year the company opened shops in Dallas and Beijing. Its two Hong Kong flagships will be enlarged. It currently derives 21 percent of its business from the European market and 26 percent from the US. Japan accounts for 27 percent of total sales, while the rest of Asia accounts for 23 percent. Ferragamo plans to open another five stores in China this year.

www.ferragamo.com
4 August 2006

New hue for Ferragamo

Rich jewel tones, delicious caramel nudes and metallic shimmer were the order of the day at Salvatore Ferragomo's show in Milan . Creative director Graeme Black designed a luscious, feminine collection full of colour and sumptuous fabrics. Dresses with a voluminous silhouette enjoyed a prominent role in the fall/winter 2006/7 collection, while cocktail dresses featured shimmering metallics and elaborate beading. The feeling of luxury also extended to the plum-coloured fur jackets paired with cigarette pants or with pleated dresses, cinched at the waist.

For Black, chocolate brown was obviously the new black, lending the collection a softer focus. Also a favourite was a deep red reminiscent of scenes from Moulin Rouge; remember Nicole Kidman in that red number? Stunning. The new silhouette favoured for next season was embodied by a plum shift dress worn under an ultra-baggy brown wool and suede cardigan and paired with thick chocolate tights and lime green open-toed heels. It was a mix of loose and fitted, with an emphasis on luxurious comfort.

www.salvatoreferragamo.com
22 February 2006

Ferragamo focuses on Middle East

Italian luxury accessories maker Salvatore Ferragamo is turning its attention to the Middle Eastern market for expansion, after the European markets proved a disappointment to the Florence-based brand. Last month the company said it would invest at least €18 million (£12.4 million) in the opening of directly-owned shops this year.

Ferragamo plans to work together with its exclusive distributor in the Middle East Emirati accessories to build a presence in that market. “We have been pushing growth in this region for three years,” said Ferragamo chief executive Ferruccio Ferragamo. “We see potential for double-digit sales growth. In 2005, growth in the Middle East was 25 percent and it will be even better in 2006.” The company expects turnover for 2005 to increase 13 percent to €581 million.

www.ferragamo.com
5 January 2006

Ferragamo expands French business

Italian fashion and accessories label Ferragamo will open its second Paris boutique on Wednesday, according to media reports. The label will be selling its full range of products in the store.

Ferragamo recently opened a store in Athens, Greece and is thought to be expanding its global presence further with a new store in Sao Paolo, Brazil. Earlier this year, the company sold its luxury label Emanuel Ungaro to the investor Asim Abdullah.

www.ferragamo.com
6 December 2005

Ferragamo sells Ungaro brand

Emanuel Ungaro said Thursday that Gruppo Ferragamo signed an agreement to sell 100 percent of the company to San Francisco-based high-tech entre pr eneur Asim Abdullah. Terms of the deal were not disclosed. Ungaro pr esident and chief executive officer Paolo Di Spirt, who will continue in his role, said Abdullah is pr epared to invest in the company and even relaunch the couture, possibly with a new designer. Di Spirt said the Ferragamos, who will continue to hold the Ungaro licenses for leather goods and fragrances, chose Abdullah over other suitors because of the financial commitments he was willing to make to the brand.

A WWD source estimated the deal would be worth $5 million to $10 million for the fashion and fragrance businesses. The level of debt is believed to be in the range of $25 million. Salvatore Ferragamo bought Ungaro in 1996 when the brand, especially the Emanuel/Emanuel Ungaro bridge collection, was riding high. In 1997, designer Giambattista Valli was hired to work aside the couturier. He was named creative director in 1998 and took the reins from Ungaro in 2001.

Di Spirt said on Thursday that the house would stage its next rtw show in March, but not necessarily with Darré. "Emanuel Ungaro has a rich history and great brand awareness," Abdullah said in a statement. "I am convinced that there's plenty of space to grow the brand in terms of pr estige and markets." Leonardo Ferragamo, an adviser to Ferragamo Finanziaria, which handles the group's diversified operations, said, "We feel that Abdullah has the competence, the credibility and the determination" to invest in "and the lead the company to success."

www.ferragamo.com
4 November 2005

Ferragamo management turmoil

The Italian luxury fashion group Salvatore Ferragamo SpA has announced the joint resignation of shoe designers Marco Cenni and Guillaume Hinfray, causing management confusion. Last month the group's creative director Natalie Gervais quit the company. Communications director Fulvio Zendrini resigned in July 2004 after only four months on the job.

Katia Choma and Olivier Amiot have been appointed to replace Cenni and Hinfray. The company, which is especially renowned for its leather goods and footwear, reported a EUR 548.2 million (GBP 388.62 million) turnover in 2004.

www.ferragamo.com
7 January 2005

Pretty Ballerina

Lots of little girls want to grow up to become ballerinas and in a world where we are told to tap into our inner child, wouldn't it make sense for us to perpetuate that dream? Of course, most of us won't have the talent, posture or discipline to be a dancer, but that can't stop us from sporting those lovely ballerina slippers and wide, tutu-like skirts.

Fashion designers are finely in tune with these secret designers and are translating the ballerina look into wearable fashion. "Women aspire to capture the almost goddess quality that the ballerina embodies," chairman of Ferragamo USA, Massimo Ferragamo, says on the matter. Ferragamo has created a ballet shoe called the Audrey - after the actress Audrey Hepburn - in various colours and fabrics every year since 1954.

Ferragamo is not the only company to offer ballet slippers. Chanel, I love Hollywould, Maloles and French Sole are just some of the brands to chose from. A proliferation of colours, designs and fabrics make the task of limiting one's choice almost impossible. The shoes look perfect under a pair of pedal pushers or a pretty, wide skirt. These skirts are going to be hot for spring/summer 2005, with designers like Miuccia Prada promoting the image. The look is reminiscent of the ultra-feminine 1950s, elegant yet informal.

Also part of the ballerina look is the concept of layering, which the dancers do during warm-up exercises. Pretty wrap sweaters in soft pastel layered over leotards, and pants with wide waistbands that fold over. Designer and founder of the cashmere line Cris, Cristiana Proietti, has tapped into her own inner ballerina by designing such items for her current collection. She also advises "a delicate pink" to complement the cashmere and to emulate the look.

Shari Hershon, senior vice president of Ann Taylor Loft, predicts that the layering of clothes will continue to be a trend at least through till fall 2006'. However, she warns against overdoing the look by wearing only ballerina-inspired items. The old adage "less is more" certainly applies here.

The clothes are, above all, comfortable, as a dancer's clothes should be to allow movement. This comfort also applies to the ballerina slippers with their low or non-existent heels and supple leather. The ballerina look is a short cut to looking feminine, graceful and elegant without having to sacrifice comfort.

www.ferragamo.com
www.revolveclothing.com
21 December 2004

Ferragamo Bites Big Apple

Italian luxury goods company Salvatore Ferragamo will open its two-storey flagship store in New York's Fifth Avenue on 12 September 2003, Ansa said. The store will offer Ferragamo menswear, womenswear and the new childrenswear collection.

August 28 2003