Ferragamo slows down, impacted by wholesale and Asia-Pacific

Salvatore Ferragamo on Thursday reported consolidated revenues of 474 million euros for the first half, down 9.4 percent at current exchange rates and down 7.1 percent at constant exchange rates compared to the first half of 2024.

Sales were hurt, in particular, by a deterioration in consumption, persistent weakness in the Asia-Pacific region, and a difficult environment of the wholesale business, a channel that reported revenues of €105 million (down 17.9% from €128 million in H1 2024, and down 14% at constant exchange rates), while the DTC distribution channel reported revenues of €357 million (down 6.5% from €382 million in H1 2024, and down 5% at constant exchange rates).

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Specifically, in the second quarter of 2025, consolidated revenues were €253 million, down 14.6 percent at current exchange rates and down 11.8% at constant exchange rates compared to the second quarter of 2024, hurt mainly by the wholesale channel.

Gross margin for the first half of 2025 was €321 million, down 15 percent from €377 million in the first half of 2024, with a sales margin of 67.7 percent, down from 72.1 percent in the first half of 2024, mainly due to the negative impact of currencies and higher provisions for inventory obsolescence of previous collections, reports Ferragamo.

EBITDA was €73 million (down 38.1 percent from €117 million in H1 2024), and adjusted EBIT was a negative €3 million (compared to a positive €28 million in H1 2024). Including the impairment test, EBIT for the first half of 2025 was negative €44 million.

Adjusted net income for the period was a negative €16 million (compared to a positive €6 million in H1 2024), while net income (including the impairment test effect of -€41 million) was a negative €57 million.

The net financial position also deteriorated, showing net liquidity of €119 million (compared to net liquidity of €167 million as of June 30, 2024).

By geographic region, EMEA in the first half of 2025 showed a 7.8 percent decline in net sales (-8.6 percent at constant exchange rates), compared to the first half of 2024, with the positive result of the DTC channel penalized by the negative performance of the wholesale channel. In the second quarter of 2025, DTC performance in EMEA was down 3.7% at constant exchange rates compared to the second quarter of 2024, mainly due to a decrease in tourist purchases compared to the first quarter of 2025.

Asia-Pacific was especially bad, with net sales down 18.5 percent (-16.3 percent at constant exchange rates) six months on six months during the period, due to a continuing particularly weak consumer environment that significantly impacted traffic.

In Q2 2025, the improvement recorded in the DTC was adversely affected by the deterioration of wholesale, and Asia-Pacific reported a decline in total net sales of 18.6% at constant exchange rates compared to Q2 2024. Japan down 3.5% (by 4.9% at constant exchange rates).

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North America down 3.9 percent (by 1.4 percent at constant exchange rates), while the only positive region was Central and South America, which recorded, again in H1 2025, sales up 11.6 percent at constant exchange rates, but down 3.5 percent at current exchange rates, compared to the same period in 2024, penalized by currency trends. The DTC channel experienced a double-digit increase at constant exchange rates, while wholesale experienced a low single-digit decline. In Q2 2025, the persistent double-digit increase in the DTC was penalized in part by the negative performance of the wholesale business, and the area reported total net sales growth of 11.2 percent at constant exchange rates compared to Q2 2024.

The Ferragamo group in its statement stressed that it has “initiated an in-depth analysis of our brand positioning, with tangible changes, with the aim of ensuring full consistency and alignment between style, product, communication and distribution channels,” stating that it is focusing on the core business of shoes and leather goods, to offer a global assortment, calibrated to geographic specificities, through a more efficient collection structure, characterized by greater depth, fewer references, and an optimization of pricing architecture.

The Florentine company indicated that it will strengthen the women’s footwear category, ensuring a full range of usage functions, from pumps to ballet flats to loafers, while the men’s footwear assortment will be maximized by expanding the continuous offering and introducing new seasonal collections in the main categories, such as moccasins, sneakers, and drivers, as well as a contemporary completion of the bag offering to cover all the main usage functions and price ranges. “We will also strengthen the leather and silk accessories offering to increase traffic and cross-selling,” explained the Salvatore Ferragamo group, which adds that it is reviewing its brand narrative through global communication with the strengthening of local content.

Finally, Salvatore Ferragamo reported that it will continue to optimize its store network and strengthen its online presence, “thanks to which, in the first half of the year, net sales on the ferragamo.com website recorded double-digit growth.”