Ferragamo posts smaller than expected operating profit drop

FILE PHOTO: Zurich amid COVID-19 outbreak

MILAN (Reuters) - Italian luxury goods group Salvatore Ferragamo on Thursday reported a smaller-than-expected 10.8% drop in operating profit for 2022, as it shouldered higher costs in a push to relaunch the Florentine brand.

Earnings before interest and tax (EBIT) came in at 128 million euros ($136 million), after rising marketing and communication expenditure drove operating costs up 21.3% year-on-year.

Ferragamo proposed to pay a dividend of 0.28 euros per share down from 0.34 euros a year ago.

($1 = 0.9443 euros)

(Reporting by Elisa Anzolin; Editing by Valentina Za)