Furla Exceeds 500 Million
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Turnover of the storied Italian leather goods brand increased to 513 million euros. Over the course of the fiscal year, the company made significant investments to strengthen its supply chain and technology – and began 2019 with the launch of its new sneaker collection
Furla Group continues to grow: over the past four fiscal years, it has doubled its turnover, hitting 513 million euros in 2018, a 5.2% increase at constant exchange over 2017 (or a 2.8% increase at current exchange).
Analyzing sales by geographic area and at constant exchange, the Asia Pacific region shines, with an 18.2% year-on-year increase in 2018; it now accounts for 26% of total turnover. The United States, meanwhile, saw an increase of 13.2%, and now accounts for 8% of total turnover. Japan remains the brand’s leading market (22% of total sales), and sales there were up 3.6% compared to 2017. The EMEA region, which represents 44% of global turnover, maintains its market position.
Furla Group continues to seek direct control of its brand distribution through a strengthening of its mono-brand stores, which produced 70% of turnover in 2018. Direct distribution, combined with multi-brand sales points and franchising, allows Furla to have a far-reaching presence in 98 countries worldwide: its 490 mono-brands (285 directly owned, 163 franchisees and 42 travel retail doors) are in the most prestigious international shopping locations. Over 1,200 select multi-brands and department store corners complete the company’s distribution network.
Of particular note is the travel retail sector, which is in continuous evolution and in 2018 registered a 16.2% increase over 2017, accounting for 7.3% of the Group’s turnover through its sales at 293 doors, from boutiques, corners, shop-in-shops, aircraft and cruise ships, across 64 countries.
The company paid special attention to its direct e-commerce platform, where, thanks to repeated investments, there was a substantial turnover increase in 2018: 45.7% over the previous year, at constant exchange.
“The United States, meanwhile, saw an increase of 13.2%, and now accounts for 8% of total turnover.”
Furla Group is focused on solidifying the wild growth it has experienced over the past several years. The company has directed major resources toward strengthening the supply chain, as well as systemically integrating countries with direct and indirect distribution networks into Furla’s corporate culture and technology.
The supply chain, which is key to guaranteeing the quality and timeliness of manufacturing, has recently benefited from the company’s adoption of a more evolved and high-performing computer system, as well as financial tools that free up resources so that suppliers can invest in bettering the manufacturing cycle.
After years of geographic expansion across the globe, the Group is now focused on a more selective development and on categories of merchandise that are complementary to its core business: in February of this year, during Milan fashion week, Furla introduced its new sneaker collection, supported by a series of important 360° marketing activities.
Furla has further strengthened investment in its marketing operations, underlining its particular attention to digital communication and social channels, which have shown an important increase of followers (+64% versus 2017 on Instagram and WeChat), while maintaining one of the highest engagement rates (1,59%) within the fashion luxury category.
Furla Group’s continuing investments in human resources have long allowed it not only to add jobs, but also to provide a better quality work life at the company and incentivize employees through its corporate welfare system “Furla for You.” This initiative has been recognized two years in a row for its excellence, with Furla listed among Italy’s Top Employers.
“We are highly satisfied with these financial results, which we achieved at a challenging time for the international market,” said Alberto Camerlengo, Chief Executive Officer of Furla Group. “We’ve invested significant financial resources in managing the unrestrained growth the company has experienced over the last several years, from acquiring total control of our retail distribution network in China, Hong Kong,Macau and Singapore, to strengthening our supply chain. Our single, fundamental goal has always been to guarantee continuity and excellence in all of Furla’s creations.”
Questions & Answers
Q.Which geographic regions experienced the most significant sales growth for Furla in 2018?
Which geographic regions experienced the most significant sales growth for Furla in 2018?
The Asia Pacific region saw the highest growth, increasing by 18.2% year-on-year, and the United States also experienced strong growth with a 13.2% increase in sales.
Q.What proportion of Furla's total turnover in 2018 came from its mono-brand stores?
What proportion of Furla's total turnover in 2018 came from its mono-brand stores?
In 2018, Furla's mono-brand stores generated 70% of the company's total turnover. These stores are a key part of Furla's strategy for direct distribution.
Q.What initiatives did Furla undertake to strengthen its supply chain during the fiscal year?
What initiatives did Furla undertake to strengthen its supply chain during the fiscal year?
Furla adopted a more evolved computer system and implemented financial tools. These measures free up resources for suppliers, enabling them to invest in improving the manufacturing cycle.
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