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By
Reuters API
Published
Mar 12, 2019
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Ferragamo's core profit falls 14 percent in 2018 as turnaround costs weigh

By
Reuters API
Published
Mar 12, 2019

Italy's luxury shoemaker Salvatore Ferragamo posted a 14 percent drop in 2018 core profit, undermined by the costs of a turnaround plan in the face of falling sales.


@ferragamo



The luxury leather goods company has struggled in the last two years to rejuvenate its brand and captivate essential younger customers.

The company appointed a new chief executive, Micaela Le Divelec, in July after a failed attempt to revamp the business by former boss Eraldo Poletto, who stepped down after less than two years in the job.

Ferragamo said on Tuesday that earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to 214 million euros (183.2 million pounds) in 2018, in line with analyst expectations, according to Refinitiv data.

The company had reported in January a 1.4 percent decline in full-year like-for-like sales.

Ferragamo, which trimmed its dividend to 0.34 euros per share from 0.38 euros a year ago, said in a statement it had little visibility in the current macroeconomic and market environment and was working to restore sustainable growth in the medium term.

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