In the second quarter of 2024, revenues of Italian footwear manufacturers fell by 8.0 percent year-on-year, slightly worse than previously anticipated and confirming the decline seen in the first three months of the year. In the first quarter, revenues contracted by 10.1 percent year-on-year, while production decreased by 20.5 percent. However, the sharp drop was partly due to a tough comparative base due to the rebound in activity registered in early 2023 as the world economy rebounded from the havoc caused by the Covid-19 pandemic. The initial estimate was for a 7.4 percent decrease in the second quarter.
In the first half of 2024, sales for Italian shoemakers were down by 9.1 percent, according to Confindustria Moda’s research center, while production decreased by 19.5 percent, based on data from the national statistics office Istat.
In the whole of 2023, sales for the industry grew by 0.6 percent to €14.58 billion, but the increase was mainly due to a 13.6 percent rise in the first three months of the year.
“The phase of weak demand, compounded by a lower consumer propensity to purchase, a slowdown in several economies (not only China) and uncertainty resulting from the geopolitical turmoil in different parts of the world, has significantly affected orders, including in the luxury segment. The economic downturn is having a strong impact on the production trends of companies,” said Giovanna Ceolini, chairwoman of Assocalzaturifici, the Italian footwear association.
In the first five months of 2024, exports, which absorb about 85 percent of Italy’s footwear production, fell by 8.5 percent year-over-year in value to €5.023 billion and by 6.8 percent in volume to 81.915 million pairs. The average price of shoes exported slipped by 1.9 percent to €61.32.
Exports to the European Union (EU) fared better than those to the rest of the world, largely thanks to shipments to France, the main export market for Italian footwear manufacturers as they supply French fashion brands.
Sales to the EU were down by 1.6 percent in value to €2.520 billion and declined by 2.4 percent in volume to 56.021 million pairs. Exports to France grew by 2.6 percent in value to €993.0 million and by 1.5 percent in volume to 16.038 million pairs.
The US was the second largest export market in value, down by 3.5 percent to €596.2 million, followed by Germany, down by 11.0 percent to €479.6 million.
Exports to Switzerland collapsed by 54.7 percent to €336.5 million. The country was traditionally a logistics hub for international brands, but goods are now increasingly shipped directly from Italy. Nevertheless, it remains the fourth largest export market for Italian shoemakers.
Meanwhile, Italian footwear imports dropped by 11.6 percent in value to €2.680 billion, resulting in a trade surplus of €2.458 billion in the first five months, down by 4.7 percent.
Based on data provided by Sita Ricerca, Italian household spending on footwear fell by 2.1 percent year-on-year to €2.746 billion in the first half of 2024. In terms of volume, domestic purchases were also down by 2.1 percent to 67.56 million pairs and the average price of shoes increased by a meager 0.1 percent to €40.64.
When compared to 2019, the year before the outbreak of the Covid-19 pandemic, the picture is even bleaker. Spending fell by 6.0 percent in value and by 7.5 percent in volume. Prices per pair were however up by 1.6 percent.
A survey carried out in July by Confindustria Moda among members of Assocalzaturifici, estimated that the combined revenues for the sector decreased by 5.8 percent in the third quarter, resulting in a drop of 8.0 percent in the first nine months of 2024.
It also revealed that 75 percent of Italian shoemakers expect to finish 2024 with revenues below last year’s level, while 15 percent anticipate to match them and 10 percent to improve the top line.
At the end of June, the number of shoe manufacturing firms declined by 3.0 percent, or 107 units, compared with the end of 2023, to 3,457, while the number of employees contracted by 3.2 percent, or 2,359 people, to 71,280.
With the inclusion of producers of footwear components, the number of companies also fell by 3.1 percent, or 260 units, during the quarter and the number of employees declined by 4.5 percent, or 3,389 people.
