4.07%

Footwear Sector Suffers Double-Digit Dip in Sales, Orders in First Quarter

A study on industry impacts from the COVID-19 crisis by Confindustria Moda with participation by 88 members of the Italian trade organization, Assocalzaturifici Italiani, found that footwear companies averaged a 38.4 percent drop in first-quarter sales with total period losses pegged at 1.7 billion euros. An estimated 60 percent of respondents reported a 20- to 50-percent sales decline compared to the year-ago quarter, as 20 percent realized a more than 50 percent decline in sales. Meanwhile, the average order decline was 46.2 percent for the period.

“The lockdown has had a significant impact on the sector,” Siro Baden, chairman of the trade group, said. “Unlike the textiles industry, we are unable to convert our production lines, and so we have registered a steeper drop in sales and orders than other companies in the fashion industry.”

Among the key difficulties respondents said they face going forward were relations with customers, cash shortages and the cancelation of trade fairs. Strategic priorities for any government industry intervention should focus on guaranteeing liquidity, implementing social security measures, enacting appropriate fiscal policies and trade fairs.