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Ferrari's revenue & profit rise in a tough market

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According to a media report, in the third quarter of 2019, Ferrari's revenues increased by 9% and operating profit increased by 12% year-on-year. Ferrari's shares have gained 77% and the company is valued at US$ 31 billion.

The report suggests that Ferrari's customers are willing to pay a premium to personalize cars even during a recession. It is said that the company wants to be seen as a luxury goods company and not as a regular carmaker and that its operating profit margin is 25%, which is much higher than other carmakers.

Ferrari is expected to reduce its clothing and accessories line-up and is looking to move it upmarket with the help of Giorgio Armani. It could also open driving simulation centers and enter e-sports. The company hopes that these services and products account for 10% of the operating profit.

Among the Italian carmaker's upcoming cars is a hybrid supercar called the SF90 Stradale, while the Purosangue SUV is not expected for another couple of years at least.

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