Ferragamo revenue down 9.4 percent amidst challenging market conditions

Salvatore Ferragamo reported revenue of 474 million euros down 9.4 percent compared to the first half of 2024, and down 7.1 percent at constant exchange rates, for the first six months of the year.

Overall revenue was impacted by the wholesale channel, which reported revenue of 105 million euros, down 17.9 percent or down 14 percent at constant exchange rates. The direct-to-consumer distribution channel reported revenue of 357 million euros, decline of 6.5 percent or negative 5 percent at constant exchange rates.

The gross margin amounted to 321 million euros, down15 percent, with an incidence on revenue of 67.7 percent. EBITDA amounted to 73 million euros, a drop of 38.1 percent. The adjusted operating profit (EBIT) was negative 3 million euros. The adjusted net profit for the period was negative 16 million euros in the first half of 2025.

"Since the second quarter, characterised by a very challenging and deteriorated consumer environment, particularly in the Asia Pacific area, and a negative wholesale scenario, we have launched an in-depth analysis of our brand positioning," management highlighted in a statement. "The objective is to ensure full consistency and alignment between style, product, communication and distribution channels. This has led to the identification of key business priorities and the definition of a targeted action plan."

Ferragamo implements strategic changes to drive growth

"We have already begun to implement tangible changes and are confident that these actions will prove increasingly effective between now and the end of the year and even more so in 2026," Ferragamo management added.

Regarding the product offering, the company is working on a recognisable aesthetic, enhancing heritage symbols and codes. The focus will be on the core business of shoes and leather goods, enhancing desirability through craftsmanship and creativity. The goal is to offer a global assortment, calibrated to geographical specificities, in line with customer expectations. This will be achieved through a more efficient collection structure, characterised by greater depth, fewer references and optimised price architecture.

"To achieve these objectives, we will strengthen the women's footwear category, elevating our iconic Vara line, updated with a contemporary twist, enhancing our new Zina pillar, and guaranteeing a complete range of functions, from pumps to ballerinas to loafers," management specified.

"We will maximise the men's footwear assortment by expanding the continuous offer and introducing new seasonal collections in the main categories, such as loafers, sneakers and drivers. We will continue to support our distinctive formal segment, driven by the iconic Tramezza line, and explore new growth opportunities," the statement read.

An optimisation of the store network is also underway, with a renovation plan including targeted actions at contained costs and eye-catching visual merchandising.

Performance across geographical areas

In the first half of 2025, the EMEA area recorded a 7.8 percent or 8.6 percent decrease in net sales at constant exchange rates compared to the first half of 2024. The positive result of the direct-to-consumer channel was offset by the negative performance of the wholesale channel.

In the first half of 2025, North America recorded a 3.9 percent or 1.4 percent decrease in net sales at constant exchange rates. In the second quarter of 2025, the positive performance of direct-to-consumer, slightly accelerating compared to the first quarter of 2025, was offset by the negative performance of the wholesale business. This led to a 3.3 percent decrease in total net sales at constant exchange rates compared to the second quarter of 2024.

In the first half of 2025, Central and South America recorded an 11.6 percent increase in net sales at constant exchange rates and a 3.5 percent decrease at current exchange rates, impacted by currency performance. The direct-to-consumer channel recorded a double-digit increase at constant exchange rates, while the wholesale channel recorded a low single-digit decrease.

In the first half of 2025, the Asia Pacific area recorded a decrease in net sales of 18.5 percent or 16.3 percent at constant exchange rates due to the persistence of a particularly weak consumer environment that significantly impacted traffic.

The Japanese market reported a 3.5 percent or 4.9 percent at constant exchange rates due to the deterioration that occurred in the second quarter of 12.6 percent at constant exchange rates, mainly due to the more difficult comparison base and lower purchases by Chinese tourists.

This article was translated to English using an AI tool.

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