Salvatore Ferragamo had to accept a decline in sales in the first half of the current financial year 2025.
The turnover of the Italian fashion house was 474 million euros in the first six months, Ferragamo said on Thursday evening. This corresponds to a decline of 9.4 percent compared to 523 million euros in the first half of 2024. The decline was 7.1 percent for constant exchange rates.
The decline in total sales can be attributed to weak revenues in the wholesale business. This recorded sales of 105 million euros, which corresponds to a decline of 17.9 percent in the previous year (-14 percent for constant exchange rates). But also in direct sales, the proceeds compared to the first half of 2024 decreased by 6.5 percent to 357 million euros (-5 % for constant exchange rates).
The gross margin amounted to 321 million euros (-15 percent in the previous year comparison). This corresponds to a share of sales of 67.7 percent. The result before interest, taxes and depreciation (EBITDA) was 73 million euros and was 38.1 percent behind the previous year. The adjusted operational result (EBIT) was in the minus with three million euros after it was positive in the first half of 2024 at 28 million euros. The bottom line was that the adjusted net loss of the reporting period was 16 million euros compared to a profit of six million euros in the first half of 2024.
“Since the second quarter, which was characterized by a very challenging and deteriorating consumer area, especially in the Asian-Pacific area, and a negative wholesale scenario, we have started an in-depth analysis of our brand positioning,” emphasized management in a message. The aim is to ensure the full coherence and orientation between style, product, communication and sales channels. This led to identifying the most important business priorities and the definition of a targeted action plan.
A recognizable aesthetics: Salvatore Ferragamo relies on tradition
“We have already started to implement tangible changes,” added Salvatore Ferragamo’s corporate management. It is confident that these measures will prove more effective by the end of the year and even more in 2026.
With regard to the product range, the company is working on a recognizable aesthetics. The symbols and codes of the cultural heritage are upgraded. The focus will be on the core business shoes and leather goods. The attractiveness of the products is to be increased by craftsmanship and creativity. The aim is to offer a global range that is tailored to the geographical features and meets the expectations of customers. This is to be achieved through a more efficient collection structure with greater depth, less references and an optimized price architecture.
“To achieve these goals, we will strengthen the category of women’s shoes,” said management. The iconic line Vara is to be modernized and the new Zina product line is to be upgraded. A comprehensive range of pumps to ballerinas to moccasins is to be offered.
“We will maximize the range of men’s shoes by expanding the continuous offer and introducing new seasonal collections in the main categories such as moccasins, sneakers and drivers,” says the statement. The unmistakable formal segment, which is led by the iconic tramezza line, is to continue to support and new growth opportunities are to be explored.
The branch network is also optimized. Renovation measures with targeted, inexpensive actions and an appealing visual merchandising are planned.
Development in the individual regions
Europe, the Middle East and Africa (EMEA) recorded a decline in net sales by 7.8 percent in the first half of 2025 (-8.6 percent in constant exchange rates) compared to the first half of 2024. The positive result in direct sales was reduced by the negative development in the wholesale business.
In the first half of 2025, North America recorded a decline in net sales by 3.9 percent (-1.4 percent for constant exchange rates) compared to the same period in the previous year. Thanks to the positive development in the main channel, the development of direct sales was at the level of the previous year. In the second quarter of 2025, the positive development of direct sales, which was slightly accelerated compared to the first quarter of 2025, was affected by the negative development of the wholesale business. This led to a decline in the total net turnover by 3.3 percent in constant exchange rates compared to the second quarter of 2024.
In the first half of 2025, Central and South America recorded an increase in net sales by 11.6 percent for constant exchange rates and a decrease of 3.5 percent in current exchange rates compared to the same period in the previous year. The development was affected by currency development. The direct sales recorded double -digit growth for constant exchange rates, while wholesale recorded a decline in the low single -digit range.
In the first half of 2025, the Asian-Pacific area recorded a decline in net turnover by 18.5 percent (-16.3 percent in constant exchange rates) compared to the first half of 2024. The reason for this was the continued weak consumption area, which was significantly increased in the number of visitors.
In the first half of 2025, the Japanese market recorded a decline in net sales by 3.5 percent (-4.9 percent in constant exchange rates) compared to the first half of 2024. The reason for this was the deterioration in the second quarter (-12.6 percent in constant exchange rates compared to the second quarter of 2024). This is primarily due to the more difficult comparison base and lower purchases from Chinese tourists.
This article was used with digital tools translated.
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