Salvatore Ferragamo

Earnings Release • Apr 20, 2023

1Q 2023 Revenue Update

Analyst Presentation

April 20, 2023 - 6.00 PM CET

DISCLAIMER

This presentation contains forward-looking statements regarding future events and results of the Company that are based on the current expectations, projections and assumptions of the management of the Company.

The actual results may differ materially from those expressed in any forward-looking statement and the Company does not assume any liability with respect thereto.

This document has been prepared solely for this presentation and does not constitute any offer or invitation to sell or any solicitation to purchase any share in the Company.

The Manager in Charge of preparing the Company financial reports hereby certifies pursuant to paragraph 2 of art. 154-bis of Legislative Decree no. 58 of February 24, 1998, that the accounting disclosures of this document are consistent with the accounting documents, ledgers and entries.

1Q 2023 BUSINESS UPDATE

• 2022 was a building year in which we started our strategic refocusing.
• In 2023 we started the progressive deployment of our new product offer. In February the first products designed by our new creative Director, Maximilian Davis, arrived in our stores.
• In spite of positive early results, the limited quantities of new products are not yet sufficient to positively impact the trading in this phase of the transition. Reported revenues for Q1 23 were down 4% vs. LY (-7% at const. FX).
• RTL, at const. FX, was down 2% vs. Q1 22, mainly penalized by a softening US market, while we reported a positive performance in EMEA and a progressively improving trend in China, with Mainland Chinese customers also driving the recovery in Hong Kong.
• WHL, at const. FX, was down 16% vs. Q1 22, due to the planned rationalization of our third parties' network, mainly in the US, and the delayed recovery of Travel Retail in Asia Pacific, while EMEA reported a solid trend.

1Q 2023 BUSINESS UPDATE

• While the new offering today represents a small portion of the overall intended collection, it is an important step in the execution of our strategy and we are pleased by the early results.
• It will not be until later this year that we will start to see the fuller appreciation of the more complete new offer.
• We are also very pleased by the positive resonance and visibility of our initial communication efforts.
• New marketing activities and a higher share of new products will provide the engine for growth and increased store efficiency.
• We continue to invest in our business and make the critical choices to rationalize and elevate our wholesale channel.
• We are conscious of the work ahead of us, remain confident in our plans and confirm our mid-term ambition.

1Q 2023 REVENUES

1Q 2023 REVENUE BY DISTRIBUTION CHANNEL

March YTD
				Δ %	Weight on	Weight on
(Euro MM)	2023	2022	Δ %	Const FX	Tot 2023	Tot 2022
Retail	191.0	195.4	-2.3%	-2.4%	68.7%	67.5%
Wholesale	80.9	94.0	-13.9%	-16.1%	29.1%	32.5%
Net Sales	271.9	289.5	-6.1%	-6.9%	97.8%	100.0%
Hedging	1.5	(3.6)	na	na	0.5%	-1.3%
Licences & Other Rev.	3.8	3.0	30.3%	30.3%	1.4%	1.0%
Rental income	0.7	0.6	8.3%	3.6%	0.2%	0.2%
Total Revenue	278.0	289.4	-4.0%	-6.5%	100.0%	100.0%

For a better performance analysis, data for 1Q 2022 were restated for comparative purpose following a different presentation of revenues by channel.

1Q 2023 NET SALES BY REGION

March YTD
				Δ % Const	Weight on	Weight on
(Euro MM)	2023	2022	Δ %	FX	Tot 2023	Tot 2022
Europe	71.9	57.6	24.7%	25.0%	26.4%	19.9%
North America	67.3	84.0	-19.8%	-23.4%	24.8%	29.0%
Japan	23.7	25.5	-7.1%	1.2%	8.7%	8.8%
Asia Pacific	90.8	105.1	-13.6%	-13.0%	33.4%	36.3%
Latin America	18.2	17.3	5.4%	-5.7%	6.7%	6.0%
Net Sales	271.9	289.5	-6.1%	-6.9%	100.0%	100.0%

For a better performance analysis, Net Sales by geographical area have been presented excluding Cash flow hedge effect on revenues and data for 1Q 2022 were restated only for comparative purpose.

1Q 2023 NET SALES BY PRODUCT

March YTD
				Δ % Const	Weight on	Weight on
(Euro MM)	2023	2022	Δ %	FX	Tot 2023	Tot 2022
Shoes	124.8	125.4	-0.4%	-1.7%	45.9%	43.3%
Leather goods & handbags	107.7	126.3	-14.8%	-15.3%	39.6%	43.6%
RTW	19.4	17.8	8.6%	8.0%	7.1%	6.2%
Silk & other access.	19.2	19.1	0.5%	-0.3%	7.1%	6.6%
Fragrances	0.9	0.9	1.2%	0.0%	0.3%	0.3%
Net Sales	271.9	289.5	-6.1%	-6.9%	100.0%	100.0%

For a better performance analysis, Net Sales by product category have been presented excluding Cash flow hedge effect on revenues and data for 1Q 2022 were restated only for comparative purpose.

Q&A