Ferragamo grows revenue and returns to black as relaunch strategy advances

MILAN, Aug 3 (Reuters) - Italian luxury brand Ferragamo swung to a net profit for the first half, after growing sales by 4.6% at constant currencies in the second quarter, with turnaround efforts particularly evident in the performance of directly owned shops.

Ferragamo, which has been operating without a permanent chief executive for more than a year, said a bigger share of the people walking around its shops had made a purchase, with an increase both in full-price sales and in the average price and number of items sold.

Direct sales to customers rose 6.6% at constant currencies in the April-June period, it said. 

Board member Ernesto Greco told a post-earnings analysts call that the sales growth pace had moderated in July.

This reflected a slowdown in the United States but also a decision to cut short the period of summer discount sales, he said.

A former Ferragamo general manager, Greco sits on the advisory committee that has been supporting Chairman Leonardo Ferragamo in leading the group since former CEO Marco Gobbetti left last year after just three months in the job.

Greco said Ferragamo was considering repurchasing some unsold inventory sitting with stores, to protect the value of its brand.

The company has been battling a prolonged slide in sales in recent years, fuelling speculation the founding family could cut its holding, a possibility they have denied.

Group revenue totalled €259 million ($298 million) in the second quarter, up 2.4% year-on-year when taking into account foreign exchange rates.

The Florentine group posted a net profit of €1.5 million for the first half, compared with an adjusted loss of €16 million in the same period a year ago.

Its core profit improved almost by a quarter to €90 million from a year earlier thanks to strict cost control.

($1 = 0.8689 euros)

(Reporting by Valentina ZaEditing by Keith Weir and Gavin Jones)