The board of directors of Salvatore Ferragamo, given the slowdown in the luxury sector in which it operates, has carried out some simulations equivalent to those that will have to be carried out in the write-down during the preparation of the draft financial statements as of December 31, 2024. Devaluation, which, they make known through a statement, would be quantifiable between 70 and 90 million euro. Meanwhile, the brand is registering positive developments in Piazza Affari, which is trading up 6.56%.
The brand’s statement
Noting the slowdown in the sector, and in light of new estimates developed by market analysts, Ferragamo announced a possible downturn based on simulations. “These simulations suggest that it is likely that impairments could be made on specific individual assets: cumulatively leading to an overall impairment quantifiable in the range of 70 to 90 million euro. The final amount will be defined during the period depending on the principles governing the impairment such as, but not limited to, market trends and the company’s business expectations”. Value that must not exceed that which is recoverable through the use of the asset or service. The impairment assumptions, the statement stresses, will not result in any financial outlay and will not significantly change the company’s total assets, which stood at 1.74 billion euro as of June 30, 2024.
Stock Market
Good session on the morning of December 3 for the luxury brand, which trades up 6.56%. Comparing the stock’s performance on a weekly basis shows that Salvatore Ferragamo maintains positive relative strength in comparison with the index, demonstrating greater investor appreciation than the index itself. Bullish signs can be seen in the short term, but the medium-term situation still remains negative.
Images from Ferragamo’s Instagram profile
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