Salvatore Ferragamo — Earnings Release 2015

May 13, 2015

Informazione Regolamentata n. 1220-13-2015		Data/Ora Ricezione 13 Maggio 2015 17:47:08	MTA
Societa'	:	SALVATORE FERRAGAMO
Identificativo Informazione Regolamentata	:	58217
Nome utilizzatore	:	FERRAGAMON02 - Mentil
Tipologia	:	IRAG 03
Data/Ora Ricezione	:	13 Maggio 2015 17:47:08
Data/Ora Inizio Diffusione presunta	:	13 Maggio 2015 18:02:08
Oggetto	:	Press Release 1Q
Testo del comunicato

Vedi allegato.

PRESSRELEASE

Salvatore FerragamoS.p.A.

The Boardof DirectorsApproves the ConsolidatedInterim Report asof 31 March 2015

Growth Continuesfor the Salvatore FerragamoGroup:

Three MonthsRevenue +10%, GrossOperatingProfit (EBITDA 1 ) +16%, Operating Profit (EBIT) +12%andGroup Net Profit +20%vs. 2014

• Revenues: 327 millionEuros(+10%vs. 299 millionEurosat 31 March2014)
• GrossOperatingProfit (EBITDA 1 ): 61 million Euros(+16%vs. 53 million Eurosat 31 March 2014)
• Operating Profit (EBIT): 47 million Euros (+12% vs. 42 million Euros at 31 March 2014)
• Net Profit: 32 millionEuros(+17%vs. 27 millionEurosat 31 March 2014), including 1 millionEurosof Minority Interest
• Group Net Profit: 31 millionEuros(+20%vs. 26 millionEurosat 31 March 2014)

Florence, 13 May 2015 The Board of Directors of Salvatore Ferragamo S.p.A. (MTA: SFER), parent company of the Salvatore Ferragamo Group, one of the global leaders in the luxury sector, meeting under the chairmanship ofFerruccio Ferragamo, examined and approved the Consolidated Interim Report as of 31 March 2015, drafted according to IAS/IFRS international accounting principles( non-audited ).

¹ EBITDAismeasured by our management to evaluate operating performance. We define EBITDAasoperating income plus (i) depreciation of property, plant and equipment, investment property, (ii) amortization of other intangible assets with definite useful life and (iii) write-downs of property, plant and equipment, investment property and other intangible assetswith definite useful life and goodwill. We believe that EBITDAisan important indicator for measuring the Group sperformance as it is not influenced by various methodsof calculating taxes, amortization or depreciation. As EBITDA is not an indicator defined by the accounting principles used by our Group, our method of calculating EBITDA may not be strictly comparable to that used by other companies.

Notesto the Income Statement for 1Q2015

Consolidated Revenue figures

Asof 31 March 2015, the Group hasposted Total Revenue of 327 millionEuros, registeringa 10% increase at current exchange rates, over the 299 million Euros recorded in 1Q 2014. Revenue growth at constant exchange rates ² hasbeen2%.

Revenuesbygeographical area 3

The Asia Pacificarea is confirmed as the Group's top market in terms of Revenues, increasing by 11% (stable at constant exchange rates) vs. 1Q 2014. A significant contribution came from the retail channel in China, which recorded a Revenue growth of 22% in the first three months of 2015 (+9%at constant exchange rates).

Europe posted an increase in Revenues of 2%(+1%at constant exchange rates) compared to 1Q 2014, with a double-digit growth of the retail channel, while the wholesale business, negatively impacted by the geopolitical tensions, saw a contraction in turnover.

North America, despite the unfavourable weather conditions, recorded a Revenue increase of 16%(+3%at constant exchange rates) in the first three monthsof 2015.

The Japanese market registered a 5% growth (+6% at constant exchange rates) in 1Q 2015, despite the challenging comparison base.

Revenues in the Central and South America in 1Q 2015 continued the double-digit growth, posting an increase of 28%(+19%at constant exchange rates).

Revenuesbydistribution channel³

As of 31 March 2015, the Group's Retail network could count on 375 Directly Operated Stores (DOS), while the Wholesale and Travel Retail channel included 262 Third Party Operated Stores (TPOS), aswell asthe presence in Department Storesand high-level multi-brand Specialty Stores.

In 1Q2015 the Retail distribution channel posted consolidated Revenuesup by over 11%(+3%at constant exchange rates), with a stable growth at constant exchange ratesand perimeter (likefor-like) vs. 1Q2014.

² Revenuesat constant exchange rates are calculated by applying to the Revenue of the first three months2014, not including the hedging effect , the average exchange rate of the first three months2015.

³ The variationsin Revenuesare calculated at current exchange rates, unlessdifferently indicated.

The Wholesale channel, despite the hard comparison base, registered an increase in Revenues of 6% (stable at constant exchange rates) vs. 1Q 2014, penalized by the ongoing geopolitical tensions in Eastern Europe and in Greece.

Revenuesbyproduct category 4

All the product categories, with the only exception of fragrances, registered an increase in Revenues in 1Q 2015. It is especially worth highlighting the increase of handbags andleather accessories, that posted an increase of 16%(+8%at constant exchange rates). The performance of fragrances(-11%) was penalized by the unstable situation in Eastern Europe and by a different delivery calendar vs. the same period of last year.

GrossProfit

In 1Q 2015 the Gross Profit increased by 16%, reaching 212 million Euros. Its incidence on Revenuesmoved to 64.7%, from 61.3%recorded in 1Q2014, also thanks to the positive impact of exchange rates(net of the hedging effect) and the favorable channel and product mix.

OperatingCosts

In 1Q 2015 OperatingCostsgrew by 16%, reaching 165 million Eurosand thus theirincidence on Revenuesreached 50.3%, from 47.3%in 1Q2014.

GrossOperatingProfit (EBITDA 5 )

The GrossOperatingProfit (EBITDA) increased by 16%over the period, reaching 61 millionEuros, from 53 million Eurosof 1Q2014, with an incidence on Revenuesimprovingto 18.7%, from 17.7% in 1Q2014.

⁴ The variationsin Revenuesare calculated at current exchange rates, unlessdifferently indicated.

⁵ EBITDAismeasured by our management to evaluate operating performance. We define EBITDAasoperating income plus (i) depreciation of property, plant and equipment, investment property, (ii) amortization of other intangible assets with definite useful life and (iii) write-downs of property, plant and equipment, investment property and other intangible assetswith definite useful life and goodwill. We believe that EBITDAisan important indicator for measuring the Group sperformance as it is not influenced by various methodsof calculating taxes, amortization or depreciation. As EBITDA is not an indicator defined by the accounting principles used by our Group, our method of calculating EBITDA may not be strictly comparable to that used by other companies.

OperatingProfit (EBIT)

The Operating Profit (EBIT) increased, over the period, from 42 million Euros in 1Q 2014 to 47 million Euros (+12%) in 1Q 2015, with an incidence on Revenues reaching 14.3%, from 14.0%in 1Q2014.

Profit before taxes

The Profit before taxesin 1Q 2015 increased to 44 million Euros(+11%), from 40 million Euros in 1Q2014, and its incidence on Revenueswas13.5%vs. 13.4%in 1Q2014.

Net Profit for the Period

The Net Profit for the period, including the Minority Interest of 1 million Euros, was 32 million Euros, marking a 17%increase.

The Group Net Profit reached 31 million Euros, as compared to 26 million Euros in 1Q 2014, marking an increase of 20%.

Notesto the Balance Sheet for 1Q2015

Net WorkingCapital⁶

The Net WorkingCapital went to 309 million Euros, increasingby 22%from 253 million Euros at 31 March 2014, also negatively impacted bythe currencies trend (+15% at constant exchange rates 7 ). In particular, the Inventory increase by only 6%(+1%at constant exchange rates).

Investments(CAPEX)

Investments (CAPEX) reached 12 million Euros at 31 March 2015, +26% vs. 1Q 2014, mainly attributable to the new stores, the enlargement and refurbishment of existing key locations, in addition to continuing logistics enhancements and digital projects ( SAP Marlin Project and e commerce ).

Net Financial Position

The Net Financial Debt at 31 March 2015 decreased to 34 million Euros, compared to 49 million Euros at 31 December 2014, also thanks to the significant operating cash generation which, in 1Q 2015, reached 45 million Euros, vs. 16 million Eurosin 1Q2014.

⁶ Net working capital is calculated (in accordance with CESR Recommendation 05-054/b of February 10, 2005) as inventories and trade receivables net of trade payables (excluding other current assets and liabilities and other financial assets and liabilities). As net working capital is not an indicator defined by the accounting principles used by our Group, our method of calculating net working capital may not be strictly comparable to that used by other companies.

⁷ The net working capital at constant exchange rates is calculated by applying to the net working capital as of 31 March 2014, the exchange rate asof 31 March 2015.

The business trends, recorded in the first months of the current year, justify expectations for growth also throughout 2015, in the absence of severely unfavourable market conditions.

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The manager mandated to draft the corporate accounting documents, Ernesto Greco, pursuant to article 154-bis, paragraph 2, of Legislative Decree no. 58/1998 (Consolidated Financial Law), hereby declares that the information contained in this Press Release faithfully represents the content of documents, financial booksand accounting records.

Furthermore, in addition to the conventional financial indicators required by IFRS, this Press Release includes some alternative performance indicators (such asEBITDA, for example) in order to allow for a better assessment of the performance of the economic and financial management. These indicatorshave been calculated according to the usual market practices.

This document may contain forecasts, relating to future events and operating results, which by their very nature are uncertain, in that they depend on future events and developments that cannot be predicted with certainty. Actual resultsmay therefore differ with those forecast, due to a variety of factors.

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The Consolidated Interim Report as of 31 March 2015 is available to anyone requesting it at the headquarters of the Company and can also be consulted in the Investor Relations/Financial Documents section of the Salvatore Ferragamo Group's website http://group.ferragamo.com from 14 May 2015.

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The Results of 1Q 2015 will be illustrated today, 13 May 2015, at 6:30 PM (CET) in a conference call with the financial community. The presentation will be available on the Company's website http://group.ferragamo.com in the Investor Relations/Presentations section.

Salvatore FerragamoS.p.A.

Salvatore Ferragamo S.p.A. is the parent Company of the Salvatore Ferragamo Group, one of the world'sleaders in the luxury industry and whose originsdate back to 1927.

The Group is active in the creation, production and sale of shoes, leather goods, apparel, silk products and other accessories, along with women's and men's fragrances. The Group's product offer also includeseyewear and watches, manufactured by licensees.

The uniqueness and exclusivity of our creations, along with the perfect blend of style, creativity and innovation enriched by the quality and superior craftsmanship of the 'Made in Italy' tradition, have alwaysbeen the hallmarksof the Group'sproducts.

With approximately 4,000 employees and a network of over 630 mono-brand stores as of 31 March 2015, the Ferragamo Group operates in Italy and worldwide through companies that allow it to be a leader in the European, American and Asian markets.

For further information:

Salvatore FerragamoS.p.A.

Tel. (+39) 055 3562230 investor.relations@ferragamo.com

Image Building

PaolaPecciarini Group Investor Relations GiulianaPaoletti, Mara Baldessari, Alfredo Mele Media Relations

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Tel. (+39) 02 89011300 ferragamo@imagebuilding.it

ThisPressRelease isalso available on the website http://group.ferragamo.com, in the section Investor Relations/Financial PressReleases .

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On the following pages, a more detailed analysis of Revenues, the consolidated income statement, a summary of statement of financial position, the consolidated cash flow statement, and the net financial position of the Salvatore FerragamoGroup asof 31 March 2015.

Revenue bygeographicarea asof 31 March 2015

						at constant
(In thousands of Euro)						exchange
		Period	ended at 31 March			rate
	2015	% on Revenue	2014	% on Revenue	% Change	% Change
Europe	85,281	26.1%	84,012	28.1%	1.5%	0.6%
North America	74,031	22.6%	63,707	21.3%	16.2%	2.6%
Japan	31,801	9.7%	30,347	10.2%	4.8%	5.7%
Asia Pacific	119,860	36.6%	107,952	36.1%	11.0%	0.2%
Central and South America	16,289	5.0%	12,770	4.3%	27.6%	18.7%
Total	327,262	100.0%	298,788	100.0%	9.5%	2.1%

Revenue bydistribution channel asof 31 March 2015

(In thousands of Euro)		Period ended	at 31 March		at	constant exchange rate
	2015	% on Revenue	2014	% on Revenue	% % Change	Change
Retail	198,795	60.7%	178,322	59.7%	11.5%	3.2%
Wholesale	122,923	37.6%	115,722	38.7%	6.2%	0.4%
Licenses and services	2,403	0.7%	2,101	0.7%	14.4%	14.4%
Rental income investment properties	3,141	1.0%	2,643	0.9%	18.8%	(2.3%)
Total	327,262	100.0%	298,788	100.0%	9.5%	2.1%

Revenue byproduct category asof 31 March 2015

	ended	31 March		at	constant exchange rate
2015	% on Revenue	2014	% on Revenue	% Change	% Change
135,845	41.5%	125,110	41.9%	8.6%	0.0%
120,870	36.9%	104,465	35.0%	15.7%	8.0%
22,862	7.0%	22,120	7.4%	3.4%	(2.3%)
22,107	6.8%	19,878	6.6%	11.2%	3.6%
20,034	6.1%	22,471	7.5%	(10.8%)	(11.7%)
2,403	0.7%	2,101	0.7%	14.4%	14.4%
3,141	1.0%	2,643	0.9%	18.8%	(2.3%)
327,262	100.0%	298,788	100.0%	9.5%	2.1%
		Period	at

Consolidated resultsfor Salvatore FerragamoGroup

Consolidated income statement asof 31 March 2015

(In thousands of Euro)		Period ended at	31 March
	2015	% on Revenue	2014	% on Revenue	% change
Revenue from sales and services	324,121	99.0%	296,145	99.1%	9.4%
Rental income investment properties	3,141	1.0%	2,643	0.9%	18.8%
Revenues	327,262	100.0%	298,788	100.0%	9.5%
Cost of goods sold	(115,634)	(35.3%)	(115,606)	(38.7%)	0.0%
Gross profit	211,628	64.7%	183,182	61.3%	15.5%
Style, product development and logistics costs	(10,722)	(3.3%)	(10,981)	(3.7%)	(2.4%)
Sales & distribution costs	(108,501)	(33.2%)	(88,890)	(29.8%)	22.1%
Marketing & communication costs	(17,223)	(5.3%)	(17,252)	(5.8%)	(0.2%)
General and administrative costs	(26,219)	(8.0%)	(22,608)	(7.6%)	16.0%
Other operating costs	(5,025)	(1.5%)	(3,916)	(1.3%)	28.3%
Other income	2,956	0.9%	2,203	0.7%	34.2%
Operating profit	46,894	14.3%	41,738	14.0%	12.4%
Financial charges	(20,604)	(6.3%)	(6,092)	(2.0%)	238.2%
Financial income	18,017	5.5%	4,380	1.5%	311.3%
Profit before taxes	44,307	13.5%	40,026	13.4%	10.7%
Income taxes	(12,474)	(3.8%)	(12,721)	(4.3%)	(1.9%)
Net profit/(loss) for the period	31,833	9.7%	27,305	9.1%	16.6%
Net profit/(loss) - Group	31,184	9.5%	26,049	8.7%	19.7%
Net profit/(loss) - minority interests	649	0.2%	1,256	0.4%	(48.3%)
EBITDA(*)	61,081	18.7%	52,763	17.7%	15.8%

(*) EBITDA is operating profit before amortization and depreciation and write-downs of tangible/intangible assets. EBITDA so defined is a parameter used by the management to monitor and assess the operating performance and is not identified as an accounting measurement under IFRS and, therefore, must not be considered as an alternative measurement to assess Group performance. Since the composition of EBITDA is not regulated by reference accounting standards, the determination criterion applied by the Group may differ from that adopted by others and therefore may not be comparable.

Summaryof consolidated statement of financial position asof 31 March 2015

(In thousands of Euro)	31 March	31 December
	2015	2014	% change
Property, plant and equipment	225,028	212,077	6.1%
Investment property	7,827	7,015	11.6%
Intangible assets with definite useful life	30,795	29,220	5.4%
Inventories	352,480	338,555	4.1%
Trade receivables	147,038	150,895	(2.6%)
Trade payables	(190,824)	(187,555)	1.7%
Other non current assets/(liabilities), net	55,146	45,032	22.5%
Other current assets/(liabilities), net	(78,674)	(37,692)	108.7%
Net invested capital	548,816	557,547	(1.6%)
Group shareholders equity	467,902	466,190	0.4%
Minority interests	46,973	42,004	11.8%
Shareholders equity (A)	514,875	508,194	1.3%
Net financial debt (B) (1)	33,941	49,353	(31.2%)
Total sources of financing (A+B)	548,816	557,547	(1.6%)

(1) Pursuant to the provisions of CONSOB Communication no. DEM/6064293 of 28 July 2006, it should be noted that net financial debt is calculated as the sum of cash and cash equivalents, current financial receivables including the positive fair value of financial instruments and current financial assets, current and non current financial liabilities and the negative fair value of financial instruments and has been determined in accordance with the provisions of CESR s Recommendation on alternative performance measures05-178/b of 3 November 2005 Recommendations of Cesr on alternative performance measures .

Net financial position asof 31 March 2015

(In thousands of Euro)	31 March	31 December	change
	2015	2014	2015 vs 2014
A. Cash	818	1,073	(255)
B. Other cash equivalents	131,151	95,390	35,761
C. Cash and cash equivalents (A)+(B)	131,969	96,463	35,506
Derivatives non-hedge component	1,055	976	79
Other financial assets	-	-	-
D. Current financial receivables	1,055	976	79
E. Current bank payables	136,732	121,083	15,649
F. Derivatives non-hedge component	1,424	260	1,164
G. Other current financial payables	4,678	4,118	560
H. Current financial debt (E)+(F)+(G)	142,834	125,461	17,373
I. Current financial debt, net (H)-(C)-(D)	9,810	28,022	(18,212)
J. Non current bank payables	24,131	21,331	2,800
K. Derivatives non-hedge component	-	-	-
M. Other non current financial payables	-	-	-
N. Non-current financial debt (J)+(K)+(M)	24,131	21,331	2,800
O. Net financial debt (I)+(N)	33,941	49,353	(15,412)

Consolidated statement of cash flowsasof 31 March 2015

(In thousands of Euro)	Period ended at 31	March
	2015	2014
Net profit / (loss) for the period	31,833	27,305
Depreciation, amortization and write down of property, plant and equipment, intangible assets and investment properties	14,187	11,025
Net change in deferred taxes	809	(2,410)
Net change in provision for employee benefit plans	-	63
Loss/(gain) on disposal of tangible and intangible assets	321	319
Other non cash items	584	439
Net change in net working capital	(8,827)	(34,367)
Net change in other assets and liabilities	6,102	13,558
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	45,009	15,932
Purchase of tangible assets	(9,542)	(9,154)
Purchase of intangible assets	(2,809)	(648)
Net change in non current assets and liabilities	(534)	(43)
Proceeds from the sale of tangible and intangible assets	6	188
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(12,879)	(9,657)
Net change in financial receivables	114	591
Net change in financial payables	5,062	(9,871)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	5,176	(9,280)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	37,306	(3,005)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	96,455	70,292
Net increase / (decrease) in cash and cash equivalents	37,306	(3,005)
Net effect of translation of foreign currencies	(1,792)	15
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	131,969	67,302