Salvatore Ferragamo (BIT: SFER) 9M16 Results: Top Line in Line Despite Wholesale Weakness

Executive Summary

• Milan-listed luxury group Salvatore Ferragamo reported a 0.7% slide in revenues in the nine months ended September 30, 2016. Revenues were virtually in line with the consensus estimate.
• Operating costs grew by 2.2%, leading to a 2.1% fall in operating profit, which came in marginally behind analysts’ expectations.
• Wholesale revenues were the weak spot, with a major sequential weakening in 3Q16. US wholesale revenues slumped 26% in 3Q16. This performance in wholesale mirrors that reported by some other luxury firms recently.