Salvatore Ferragamo S.p.A.

Salvatore Ferragamo S.p.A.
Public, S.p.A.
Traded as BIT: SFER
Industry Fashion
Founded Florence, Italy (1928)
Founder Salvatore Ferragamo
Headquarters Florence, Italy
Area served
 Worldwide
Key people
 Ferruccio Ferragamo (Chairman)
Eraldo Poletto (CEO)
Products Shoes, leather goods, clothing
Revenue Increase€1,438 million (2016)
Increase €261 million (2016)
Profit Increase€198 million (2016)
Owner Ferragamo family
Number of employees
 4,000[1]
Website www.ferragamo.com

Salvatore Ferragamo S.p.A. [salvaˈtoːre ferraˈɡaːmo] is an Italian luxury goods company, with headquarters in Florence, specializing in shoes,[2] leather goods, and ready-to-wear for men and women. It is the parent company of the Ferragamo Group. The company also licences eyewear and watches.

With about 4,000 employees and a network of over 660 mono-brand stores, the Ferragamo Group runs operations in Italy and worldwide, which provide the brand with a broad footprint in Europe, America and Asia.

History

Palazzo Spini Feroni: The headquarters of Salvatore Ferragamo S.p.A. in Florence.

Salvatore Ferragamo emigrated from southern Italy to Boston and then California in 1914. He opened the Hollywood Boot Shop in 1923, and made shoes[2] for movie stars such as Joan Crawford and Gloria Swanson, as well as for films such as Cecil B. DeMille's The Ten Commandments.[3] He returned to Italy and set up a shoe shop in Florence in 1927.[4] However, the modern shoemaking company regards 1928 as the date of its foundation and so celebrated its 80th anniversary in 2008.[3] Salvatore filed for bankruptcy in 1933, during the Great Depression, but by 1938 he was in a position to buy the Palazzo Spini Feroni, one of the great palaces of Florence,[3] which now houses the company's flagship store and a museum dedicated to Ferragamo's life and work.

The company flourished after World War II, expanding the workforce to 700 craftsmen producing 350 pairs of hand-made shoes a day. After Salvatore's death in 1960, his widow Wanda took over the running of the business and expanded its operations to include eyewear, perfume, belts, scarves,[4] bags, watches, and a ready to wear clothing line.

Ferruccio Ferragamo, current president of Salvatore Ferragamo S.p.A.

The company is currently owned by the Ferragamo family, which in November 2006 included Salvatore's widow Wanda, five children, 23 grandchildren and other relatives.[5] There is a rule that only 3 members of the family can work at the company, prompting fierce competition.[5] To ease these tensions, in September 2006, the family announced a plan to float 48% of the company on the stock market, and since October 2006 Michele Norsa has served as managing and general director.[4] However, as of January 2008, this plan may be on put on hold in the midst of the downturn in the financial market.[6] If the listing on the stock market proceeds, the fund will be directed primarily towards building its positions in China.[7] The company is holding its 80th birthday exhibition in Shanghai.[3]

In 2011 the company was listed on the stock exchange.[8]

For the fiscal year 2016, Salvatore Ferragamo reported preliminary consolidated revenues of 1,438 million euros. As of December 31, 2016, the Salvatore Ferragamo Group's retail network consisted of 402 directly operated stores (DOS), while the wholesale and travel retail channel included 281 third party operated stores (TPOS), as well as presence in major department stores and high-end multi-brand specialty stores.[9]

On August 2, 2016 Eraldo Poletto was appointed as new CEO of the group.

Innovations

Throughout its history, the company has been known for innovative designs and use of materials. Such ingenuity goes back to Salvatore's time in California, when he studied anatomy to make shoes which were more comfortable. Notable innovations include the wedge heel, the shell-shaped sole, the ‘invisible’ sandal, metal heels and soles, the 18-carat gold sandal, the sock-shoe, sculpture heels, and the gloved arch shoe created for the Maharani of Cooch Behar in 1938.[3] Metal-reinforced stiletto heels were made famous by Marilyn Monroe.[4] The company is also known for the ‘Gancini’ decoration, the ‘Vara’ patent ballet pump, the Salvatore bag and the use of patchwork.[3] It makes also eyewear and watches in partnership with Marchon and Timex Group.

Clients

Salvatore worked with film stars and celebrities from his earliest days in Hollywood. Clients over the years included Audrey Hepburn, Sophia Loren and Greta Garbo,[4] as well as Andy Warhol, Grace Mugabe and Diana, Princess of Wales.[3] The company made Margaret Thatcher's famous handbags[7] and for King Jigme Khesar Namgyal Wangchuck during the coronation on November 6, 2008 in Thimpu, Bhutan.

Officers and management

Ferruccio Ferragamo in 1992

See also

Notes and references

  1. ↑ http://group.ferragamo.com/wps/wcm/connect/736a79e3-6db0-44c5-bfa0-18a8d7857e2b/Annual+Report+as+at+31+December+2015.pdf?MOD=AJPERES&CACHEID=736a79e3-6db0-44c5-bfa0-18a8d7857e2b
  2. 1 2 Chevalier, Michel; Gerald Mazzalovo (2012). "3". Luxury Brand Management (second ed.). Singapore: John Wiley & Sons. p. 53. ISBN 978-1-118-17176-9. OCLC 909366849.
  3. 1 2 3 4 5 6 7 Salvatore Ferragamo celebrates its 80th Anniversary in Shanghai (PDF), Salvatore Ferragamo Italia SpA, retrieved 2008-04-20
  4. 1 2 3 4 5 Webb, Tim (2007), "Leonardo Ferragamo: Angels want to wear his red shoes", The Independent, London (published 2007-02-04), retrieved 2008-04-20
  5. 1 2 Sherman, Lauren (2006), "When Fashion Goes Public", Forbes (published 2006-11-16), retrieved 2008-04-20
  6. ↑ Finch, Julia (2008), "Tommy Hilfiger halts flotation", The Guardian, London (published 2008-01-25), retrieved 2008-04-20
  7. 1 2 Cartner-Morley, Jess (2008), written at Shanghai, "From Florence to Shanghai, Ferragamo eyes a makeover", The Guardian, London (published 2008-03-29), retrieved 2008-04-20
  8. ↑ "Salvatore Ferragamo - United States - Official Store". www.ferragamo.com. Retrieved 2017-01-17.
  9. ↑ Singh, Prachi (January 30, 2015). "Salvatore Ferragamo revenues rise of 5.9 percent in FY14". FashionUnited. Retrieved June 18, 2015.
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