Hurt by a 38.5 per cent decline in sales due to the COVID-19 pandemic, Italian luxury brand Salvatore Ferragamo recorded a net loss of €96 million ($113.15 million) during the first nine months of 2020. The brand’s turnover during the first nine months of the year totaled €611 million.

This drop in sales, which was much more marked during the first half of the year, was caused by the containment measures taken across the world due to the coronavirus pandemic, which led to store closures and a shutdown of international trade and tourism.

Given the uncertainty surrounding the pandemic, the brand has not made any forecasts for the year. The brand has, however, shared that sales in China have witnessed further acceleration in October compared to in the third quarter and online sales growth is also continuing.

The Asia-Pacific region remains Ferragamo’s largest market, comprising 42.3 per cent of total sales (excluding Japan). Though the brand;s sales during the first nine months fell by 30.6 per cent in the region, but sales in its stores in China rose by 38.3 per cent at constant currencies during the third quarter.

Its sales in Europe, Middle East, and Africa market decreased by 45 per cent, North America sales dropped by 45.1 per cent, Japan by 30.9 per cent, and South and Central America by 47.5 per cent.

Ferragamo, which had been suffering from a problem of its brand positioning, experienced two difficult years in 2017 and 2018 before beginning to recover last year. However, the pandemic has put a damper on this recovery.