Salvatore Ferragamo SpA
SFER: XMIL (ITA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€2.50 | Lrmqs | Wlljssxwm |
Ferragamo Returns to Profit in Q1 2021 Despite Continuing Lockdowns in Europe; FVE Maintained
We are maintaining our fair value estimate for no-moat Salvatore Ferragamo as the company reported first-quarter revenue up 13% at constant exchange rates with retail revenue up 20.8% against 2020 levels. Wholesale channel revenue was largely flat due to underperformance of the travel retail channel (travel retail amounted to 10% of revenue precoronavirus). We still expect sales and profits to rebound strongly in 2021 from 2020 trough levels.