MILAN — Shares of luxury goods-maker Salvatore Ferragamo shares fell 5.3 percent to 9.71 euros in Milan on Tuesday as investors reacted to word that the brand’s sales were strained last month in America.
The company’s executive board member Ernesto Greco told analysts on Monday that U.S. sales were strained by a shortened discount period and inclement weather in July.
“There is lack of visibility at this stage — July is one of the smallest months in terms of contributions to full-year sales,” said Kepler Cheuvreux analyst Charles-Louis Scotti after the call.
Overall, the Florence-based luxury company reported net profit of 1.5 million euros, compared with an adjusted net loss of 16 million euros a year earlier. Revenues in the first half fell 1.3 percent to 467.8 million euros, dragged down by the Asia and Europe markets during the six-month period ended June 30.
In a note issued on Tuesday, analyst Jelena Sokolova of Morningstar said Salvatore Ferragamo‘s performance trailed against other luxury players, which reported that the U.S. was the strongest market for luxury so far this year. “We can already see that most peers posted stronger results, averaging roughly 6 percent constant-currency growth in our estimate.
