Italian luxury goods group Salvatore Ferragamo said on Thursday its revenue dropped by 4 percent at constant currencies in the fourth quarter, flagging “encouraging results” from its direct-to-consumer sales which were overall flat in the last three months of the year.

Sales in the North American region, which accounted for 29 percent of total revenue, were up 6.3 percent in the quarter.

However, the Asia Pacific area saw a 25 percent drop in revenue at constant exchange rates.

The slowdown in global demand for luxury goods, especially in China, has made the group’s turnaround harder.

Overall preliminary revenues reached 1.03 billion euros in 2024, in line with analysts’ estimates, according to an LSEG consensus.

“January shows an acceleration in our DTC channel’s growth, albeit supported by the different timing of the Chinese New Year and a favourable comparison base versus last year,” chief executive Marco Gobbetti said in a statement.

Reporting by Elisa Anzolin, editing by David Evans

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Ferragamo Sales Down 17% in First Quarter

Revenues totalled 227 million euros ($244.5 million), below analyst expectations of 237 million euros according a LSEG consensus.