(Tiper Stock Exchange) – Equity has lowered the target price to 18 euros (-11%). on Salvatore FerragamoItalian luxury house, confirming the “Buy” recommendation on the title. The review of the opinion comes before the release of the results for the second quarter of 2023, for which a turnover of 319 million euros is expected (597 million euros in the first half), with a “still very weak trend”, -8% organic year-over-year, linked to a further slowdown in retail albeit mitigated by a slight recovery in wholesale.
According to analysts, the weakness is still the result of transition phase on the productwith the new collections still not very present in stores (they estimate about 10% of the assortment), but also the network optimization strategy on both channels. The gross margin is expected to be at least stable, while the EBIT of 43.8 million euros, down 54% year on year.
Based on these estimates, Equita has cut estimates on annual turnover of 7% (4% below consensus), now flat year on year, however continuing to discount an improvement in the second half, and EBIT estimates of 7% (at 83 million euros, 8% above consensus) . The cut in estimates is more evident on 2024 (turnover -9% and EBIT -14%), where the now more negative impact of exchange rates also flows, which in 2023 is neutralized by hedging.