MILAN — Ferragamo is “fully on the right track on all its strategic priorities,” as the corporate posted one other 12 months of growth in revenues.

This was achieved “amid a fancy and volatile macroeconomic environment, through which we focused on the standard of sales in our retail network, progressed on the optimization of the wholesale channel, and increased investments within the second half, as planned,” said the corporate’s chief executive officer and general manager Marco Gobbetti during a conference call with analysts on Thursday evening.

Last 12 months, the Florence-based company reported a ten.2 percent increase in sales to 1.25 billion euros, compared with 2021.

Within the 12 months ended Dec. 31, net profit, including a minority interest, amounted to 65.3 million euros, a 19.5 percent decrease compared with 81.1 million euros in 2021.

RELATED: After a Tough Q4 and Yr Ahead, Macy’s Eyes Long-term Gains

Operating profit decreased 10.8 percent to 128 million euros compared with 143 million euros in 2021.

The drop in profitability was attributable to a rise in investments in retail, marketing and communication and by comparison with 2021, when the corporate benefited from “non-repeatable reimbursements and government grants,” Gobbetti said. “We see a solid, strong picture now.

“In May, we outlined a mid-term strategy built on 4 pillars — to renew the product, reenergize the brand, leapfrog digital and enhance the client experience,” said Gobbetti, who once more praised the creativity and talent of creative director Maximilian Davis, “probably the most sensible designers,” he mused and whose first collection was unveiled in September.

A capsule collection in November “created good engagement with existing and latest customers” and the autumn 2023 show presented during Milan Fashion Week last month garnered positive reviews and “strong endorsement,” touted Gobbetti, who has re-branded Ferragamo with a latest logo and a signature red hue.

RELATED: Maximilian Davis Referenced the Nineteen Nineties at Ferragamo for Fall 2023

“Although the macroeconomic environment stays volatile and sophisticated, we’re excited by the potential of Ferragamo and can proceed to take a position behind our growth ambition,” Gobbetti said.

In 2022, sales of footwear climbed 16 percent to 564.2 million euros, representing 44.8 percent of the full.

Leather goods rose 6 percent to 525.5 million euros, accounting for 41.7 percent of the full.

Responding to an analyst, Gobbetti said he saw “a chance, not a challenge” in the luggage category, which has shown “quite interesting latest shapes. I’m confident we have now the know-how” to construct this business,

Sales of apparel climbed 19.7 percent to 83.6 million euros.

The retail channel saw an 11.3 percent gain to 923.5 million euros, representing 73.8 percent of the full. Ferragamo’s ambition is to refresh 40 stores for the spring collection, and thus far the changes have driven “a really positive response from customers,” said Gobbetti, who didn’t forecast a significant wave of latest openings as the corporate optimizes the network. A latest store concept shall be unveiled in 2024, he said.

The wholesale channel was up 13.6 percent to 336.2 million euros.

Chief financial officer Alessandro Corsi said the optimization has been aimed toward the U.S. specifically, to “align the brand to the next positioning,” and to trim the travel retail network.

The stabilization of the wholesale channel is predicted by the top of 2023.

Last 12 months, earnings before interest, taxes, depreciation and amortization amounted to 299 million euros, down 2 percent from 305 million euros in 2021, with an incidence on revenues of 23.9 percent.

Corsi admitted the margins in 2023 might be lower than in 2022 on account of the inflation and the investments planned.

Sales in Asia Pacific registered a 4.7 decrease to 417.6 million euros, representing 33.1 percent of the full. At constant exchange, revenues were down 10.6 percent. The slowdown was mainly on account of the consequences deriving from the resurgence of COVID-19 within the region, particularly in China.

“China has seen a definite improvement for the reason that starting of the 12 months, we’re encouraged by the trend,” and by the increased stability, said Gobbetti, although he conceded it was “too early for any indications on the numbers.”

Sales in Japan rose 11.9 percent to 99.1 million euros, accounting for nearly 8 percent of revenues

The Europe, Middle East and Africa region reported a 24.7 percent increase in sales to 262 million euros, representing almost 21 percent of sales.

North America revenues climbed 22.3 percent to 391.3 million euros, accounting for 31.1 percent of the full.

Gobbetti said the American cluster had shown much interest in Ferragamo’s latest propositions, and that the brand had been “engaging latest and existing customers,” but that it was “difficult to read the subsequent few months,” while stating his confidence within the region.

Sales in Central and South America increased 29.7 percent to 90 million euros.

Asked about pricing, Gobbetti said he was “fairly satisfied with the [existing] strategy” and will envision only “technical adjustments.”

He also touted the agreement with Farfetch, and “its enormous support,” which helps to strengthen the brand’s presence online.

As of Dec. 31, capital expenditure amounted to 56 million euros compared with 44 million euros in 2021, mainly on account of renovations of the retail network and investments within the digital channel.

The adjusted net financial position was positive for 371 million euros compared with 373 million euros at the top of December 2021. Including the IFRS16 effect, the online financial position is negative for 204 million euros.