AI Terminal
Salvatore Ferragamo
Investor Presentation • Aug 1, 2024
4432_ip_2024-08-01_dfe2e41d-b353-49bf-88f0-23b815c21271.pdf
Investor Presentation
Open in ViewerOpens in native device viewer
H1 2024 RESULTS UPDATE
ANALYST PRESENTATION
AUGUST 01, 2024
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.
"The second quarter showed again some of the encouraging underlying operating trends that we started to see earlier in the year. Retail primary full-price sales showed a positive trend in the US, Europe, Japan and Latin America; our refreshed shoes and handbags offerings have been attracting new, younger customers, contributing to shift a higher proportion of purchases to younger demographics. In the media, the increased brand desirability was confirmed once again by the excellent resonance of our Fall-Winter 2024 Collection.
Despite these positive operating trends, our aggregate financial results in the second quarter were significantly impacted by the challenging consumer environment, especially in Asia Pacific, which offset the positive trends in the rest of the world. We have also continued to experience weakness in the wholesale channel, exacerbated by a more selective distribution strategy.
In a general context of ongoing demand slowdown, we will continue to focus on topline performance and profitability, expanding our audience and boosting engagement through a refreshed product offer, a full funnel marketing approach, an enriched customer experience with tailored CRM initiatives and a new store concept."
Marco Gobbetti, Chief Executive Officer and General Manager
H1 2024 BUSINESS UPDATE
New Product Offer
CONSOLIDATE NEW ICONS AND REFRESH EXISTING PILLARS
FW 2024 Collection – Reviews
SOLID RECOGNITION FROM MEDIA AND INDUSTRY AND INCREASED BRAND DESIRABILITY
INNOVATING OUR MARKETING
Full Funnel approach
Using AI in targetting and personalization - successful NYT pilot
Varying our Marketing Mix for more efficient targetting (podcasts, communities)
Increasing Immersive Brand Experiences to consumers where most receptive
More agile brand and product content in expanded range of owned channels
Superior Customer Experience through New Store Concept & CRM
Build scale and relevance through empowered, full funnel communication
Ballerina since 1954
ONGOING PUSH ON HERITAGE COMBINING HIGH FASHION BRAND NARRATIVE WITH ENGAGING PRODUCT MILESTONES
Enriching the Customer Journey
| Scopri insavi arrivi donna | |
|---|---|
| Sopri imusvi interesi indema |
Summer NL
MILAN Ballerina NL Montenapoleone Woman
FORTE DEI MARMI Via Carducci
TOKYO Shinjuku Isetan Woman
REDESIGNED & MORE EFFICIENT CUSTOMER EXPERIENCE THROUGH CRM OPTIMIZATION AND A NEW STORE CONCEPT
ESG ACHIEVEMENTS
Ratings and Acknowledgements
H1 2024 FINANCIAL REVIEW
H1 2024 REVENUE BY DISTRIBUTION CHANNEL
-
Other income includes: Hedging, licenses & other revenues, rental income investment properties
-
YoY var at Constant FX calculated only on licenses & other revenues, rental income components
-
H1 2024 Total Revenues down 13% (-11% at const. FX) and down 8% (-6% at const. FX) in Q2, still penalized by a volatile Asian market and a weak WHL environment.
- DTC*, at const. FX down 5% vs. H1 2023, and Q2 at -4% vs. last year, with the positive performances in Europe and Japan and in line in North America, offset by the weak Asia Pacific area.
- WHL, at const. FX, down 25% vs. H1 2023, and Q2 at -12% vs. last year due to weak general environment.
* DTC (Direct To Consumer) channel consists of DOS and directly managed online boutique/e-commerce platforms.
H1 2024 NET SALES BY REGION • EMEA down 16% in H1 2024 and down 3%
- in Q2, still penalized by a negative WHL, while DTC was up 5% vs. Q2 2023.
- North America down 6% in H1 2024 and down 3% in Q2, with DTC in line with last year and WHL still negative vs. Q2 2023.
- Latin America down 8% in H1 2024 and down 6% in Q2, penalized by a negative WHL, while DTC was up over 2% vs. Q2 2023.
- Asia Pacific down 15% both in H1 and Q2 2024, with the improvement in China (-4% in Q2 2024 from -21% in Q1) offset by the weakening trend in the other Asian countries.
- Japan up 3% in H1 2024 and up 10% in Q2, also thanks to the increase in travelers.
Note: all data at const. FX
H1 2024 NET SALES BY PRODUCT
- Shoes down 9% in H1 2024 and down 4% in Q2, mainly penalized by the performance in the WHL channel in Q1 and of the DTC secondary channel in Q2.
- Leather Goods down 12% in H1 2024, and down 8% in Q2, mainly penalized by the performance in the WHL channel.
- RTW down 21% in H1 2024 and down 13% in Q2.
- Silk & other accessories down 9% in H1 2024 and down 3% in Q2.
Note: all data at const. FX
H1 2024 P&L
| June YTD | ||||||
|---|---|---|---|---|---|---|
| (Euro MM) | 2024 | % | 2023 | % | 24 vs 23 | |
| Net Revenues | 523.1 | 100.0% | 600.1 | 100.0% | -12.8% | |
| Cost of goods sold | -145.8 | -27.9% | -166.6 | -27.8% | -12.5% | |
| Gross profit | 377.4 | 72.1% | 433.5 | 72.2% | -13.0% | |
| Total Costs | -349.7 | -66.8% | -386.6 | -64.4% | -9.5% | |
| EBIT | 27.7 | 5.3% | 47.0 | 7.8% | -41.0% | |
| Financial | -2.0 | -0.4% | -3.1 | -0.5% | -34.2% | |
| Financial ROU | -11.0 | -2.1% | -9.8 | -1.6% | 12.1% | |
| Profit before taxes | 14.7 | 2.8% | 34.1 | 5.7% | -56.8% | |
| Income taxes | -9.0 | -1.7% | -12.7 | -2.1% | -29.2% | |
| Net profit for the year | 5.7 | 1.1% | 21.4 | 3.6% | -73.2% | |
| Group net income | 5.7 | 1.1% | 22.5 | 3.7% | -74.5% | |
| Income to minorities | 0.0 | 0.0% | -1.1 | -0.2% | nm | |
| EBITDA | 117.2 | 22.4% | 133.6 | 22.3% | -12.3% |
• Gross Profit at € 377M, 72.1% on Revenues stable vs. last year, mainly thanks to a better DTC/WHL mix, compensating the negative FX effect.
- Total Operating Costs at € 350M, down 10% vs. last year, thanks to cost control and normalized Marketing & Communication expenses vs. H1 2023.
- EBIT at € 28M vs. € 47M last year.
- Net Profit at € 6M vs. € 21M last year.
H1 2024 BALANCE SHEET
| (Euro MM) | June 24 YTD | June 23 YTD | |
|---|---|---|---|
| Tangible assets | 218.956 | 205.390 | 6.6% |
| Intangible assets | 38.752 | 40.948 | -5.4% |
| Right of Use | 584.844 | 630.989 | -7.3% |
| Financial assets | – | – | – |
| Fixed assets | 842.552 | 877.327 | -4.0% |
| Inventory | 318.425 | 294.979 | 7.9% |
| Trade receivables | 91.548 | 101.152 | -9.5% |
| Trade payables | (142.032) | (170.436) | -16.7% |
| Operating working capital | 267.941 | 225.695 | 18.7% |
| Other assets (liabilities) | 138.590 | 127.124 | 9.0% |
| Net Asset Disposal for Sales | 0.065 | – | nm |
| Employee Benefit Liabilities | (6.299) | (7.061) | -10.8% |
| Provisions for risks and charges | (22.984) | (19.283) | 19.2% |
| Net invested capital | 1,219.865 | 1,203.802 | 1.3% |
| Shareholders' equity (A) | 707.752 | 755.664 | -6.3% |
| Group equity | 706.832 | 734.968 | -3.8% |
| Minority interest | 0.920 | 20.696 | -95.6% |
| Current financial liabilities | (223.767) | (149.426) | 49.8% |
| Non current financial liabilities | (560.089) | (609.690) | -8.1% |
| Cash & Cash equivalents | 271.743 | 310.978 | -12.6% |
| Net debt (B) | (512.113) | (448.138) | 14.3% |
| Financial sources (A-B) | 1,219.865 | 1,203.802 | 1.3% |
| Net debt (B) | (512.113) | (448.138) | 14.3% |
| Non Current Lease Liabilities | 560.089 | 609.690 | -8.1% |
| Current Lease Liabilities | 119.174 | 115.982 | 2.8% |
| Lease Liabilities | 679.263 | 725.672 | -6.4% |
| Net debt Adjusted | 167.150 | 277.534 | -39.8% |
- CAPEX in H1 2024 at € 21M up from € 17M last year, mainly for POS renewals.
- Net Inventory at € 318M, up 8% vs. last year, partly reflecting new, higher value collections.
- Net Financial Position Adjusted* at 30 June 2024 positive for € 167M (vs. € 278M positive at 30 June 2023), including € 39M cashout for the purchase of the minorities in the JVs in Greater China. Including IFRS16 effect, Net Financial Position at 30 June 2024 negative for € 512M.
* Net Financial Position Adjusted is the Net Financial Position excluding Current and non-current Lease Liabilities.
DOS NETWORK @ 30.06.2024
H1 2024 Q&A
ANNEX
H1 2024 REVENUE BY DISTRIBUTION CHANNEL
| June YTD | ||||||||
|---|---|---|---|---|---|---|---|---|
| Δ % | Weight on | Weight on | ||||||
| (Euro MM) | 2024 | 2023 | Δ % | Const FX | Tot 2024 | Tot 2023 | ||
| DTC* | 381.6 | 415.1 | -8.1% | -5.5% | 73.0% | 69.2% | ||
| Wholesale | 128.3 | 166.8 | -23.1% | -24.8% | 24.5% | 27.8% | ||
| Net Sales | 510.0 | 581.9 -12.4% | -11.1% | 97.5% | 97.0% | |||
| Hedging | 3.0 | 8.5 | -64.1% | nm | 0.6% | 1.4% | ||
| Licences & Other Rev. | 8.4 | 8.4 | 0.1% | 0.1% | 1.6% | 1.4% | ||
| Rental income | 1.7 | 1.3 | 29.0% | 29.1% | 0.3% | 0.2% | ||
| Total Revenues | 523.1 | 600.1 -12.8% | -10.9% | 100.0% | 100.0% |
* DTC (Direct To Consumer) channel consists of DOS and directly managed online boutique/e-commerce platforms.
