While retail revenue rose, net profit fell 15.4 per cent for Italian luxury goods company Salvatore Ferragamo Group for its first half to the end of June.

Retail revenue was up 4.7 per cent, offset by a 4.7 per cent drop in wholesale revenue because of destocking activity.

Revenues reached €718 million (US$848 million), up 1.1 per cent year on year, yielding a net profit of €76 million compared to €90 million for the same period last year. Revenue growth at constant exchange rates was 0.1 per cent.

Led by China, Asia Pacific was the group’s top market in terms of revenues, increasing by 6.1 per cent (4 per cent at constant exchange rates), despite a soft trend in South Korea mainly because of a significant drop in the number of Chinese tourists, and a still negative performance in Hong Kong in particular.

China’s retail revenues grew 12.2 per cent (15.5 per cent at constant exchange rates) for the half-year.

In Japan, the company’s sales fell 3.4 per cent (3.5 per cent at constant exchange rates) because of a strategic rationalisation of the wholesale channel. Retail stores had a positive performance.