In Q1 2021, Italian luxury label Salvatore Ferragamo reported a net loss of €0.6 million as business was “volatile” owing to the Covid-19 pandemic, the label indicated in a press release.

This result was however better than expected by financial analysts, who had predicted a loss of €6 million, according to financial forecaster Factset Estimates.

The loss recorded by Ferragamo in the same period a year earlier was €41 million.

The label’s revenue in Q1 2021 was €245 million, up 10.3% compared to Q1 2020 and higher than the figure forecast by Factset Estimates, which was €240.6 million.

In the 2020 financial year, Ferragamo recorded a net loss of €72 million, as opposed to the €87 million net income recorded the previous year.

The Florentine luxury label has been beset by brand positioning problems, and experienced two tough years in 2017 and 2018. It began to get back on track in 2019, though the pandemic put the brakes on its recovery.

Asia-Pacific still remains the group’s main market, accounting for over 51% of sales. Ferragamo’s Asia-Pacific revenue in Q1 2021 grew by 51.7% at constant exchange rates compared to Q1 2020.

In China in particular, retail sales skyrocketed in Q1 2021, increasing by 128% at constant exchange rates over Q1 2020.

The economic situation remains “volatile owing to the pandemic, although it is showing signs of gradually recovering,” added Ferragamo in the press release.