The Italian luxury goods company has reportedly raised its prices for a number of its products by 5 to 7% in order to offset a fall in revenues and profits resulting from a slump in demand during the corona-virus pandemic.
Ferragamo is the latest in a string of luxury brands such as Prada, Gucci, Louis Vuitton and Chanel who have implemented similar price hikes. The move is said to be aimed at “mitigating the contraction in store traffic and the increase in logistics and retail management costs caused by the pandemic,” a source told Yahoo Finance.
The corona-virus pandemic is said to be affecting management efforts to turn around the leather goods, footwear and garment maker, which returned to sales growth last year for the first time since 2015. In the first three months of 2020, Ferragamo’s sales fell by nearly a third and the group is expected to give an update on the sales trend of the second quarter on July 28.
Ferragamo raises prices to compensate for Covid-19 impact – International Leather Maker. (n.d.). Retrieved July 22, 2020, from https://internationalleathermaker.com/news/fullstory.php/aid/8700/Ferragamo_raises_prices_to_compensate_for_Covid-19_impact.html