Weak pound sends Ferragamo’s UK revenue soaring

By

Barbara Santamaria

Published
Mar 22, 2018

Italian luxury brand Ferragamo has reported a stellar 30.5% surge in sales in the UK in 2017, helped by an increase in the number of tourists visiting London as a result of the pound’s decline.

The brand said revenue for the 12 months to 31 December increased to a record £21.7 million, while gross profit climbed from £8.5 million in 2016 to £10.6 million.

The weakened strength of the pound following the EU referendum was cited as a major contributor, especially boosting the brand’s sales at its outlet store in Bicester Village. The four London stores also enjoyed strong footfall.

However, Ferragamo warned about the uncertainty of the British retail market, and increasing rental costs at its London boutiques. The company has two flagship stores on Old Bond Street and Sloane Street, and two further stores in Westfield London and inside Harrods.

Despite this, the company’s management remains confident in the strength of the brand.

“The luxury fashion market in the UK continued to receive significant benefits in 2017 from the prior year’s EU referendum result as a result of the favourable exchange rate movement that occurred. This movement significantly increased visitor numbers and made the UK a very attractive destination for foreign visitors looking to buy luxury brand goods.

“The directors anticipate that through efficient management of the company’s resources and the strength of the Ferragamo brand that, barring a deterioration in market conditions that adversely affect the UK market, the company will maintain its revenue,” it said in documents submitted with Companies House.

Ferragamo is one of Italy’s most esteemed fashion houses, famous for its elegant design and luxury shoes. The brand is owned by descendants of Salvatore Ferragamo, who died in 1960.