<\/p>\n
\n\tMILAN \u2014 Ferragamo\u2019s direct-to-consumer business and the Americas contributed to offset the contraction in the Florence-based company\u2019s wholesale channel and a lackluster performance in China last year.<\/p>\n
\n\tIn 2025, Ferragamo operated at a loss, but margins progressively improved in the second half of the year as management focuses on the brand\u2019s core and leather goods categories, on the optimization of its retail network, and investing in its digital platforms and marketing and communication.<\/p>\n
\n\tDuring a call with analysts at the end of trading on Wednesday, executive board member Ernesto Greco said the company last year \u201crefined its strategic priorities\u201d with \u201cthe objective of reinforcing coherence across the entire value chain.\u201d<\/p>\n
\n\tIn the leather goods segment, the signature Hug collection has been broadened and the Soft bag has become a bestseller, as Ferragamo also intensified its focus on silk products and other accessories such as charms, bijoux or belts, \u201cleveraging in-store cross-selling opportunities,\u201d said Greco, underscoring the brand\u2019s objective to \u201cbe the reference destination for shoes.\u201d<\/p>\n
\n\t\u201cOperating within a volatile geopolitical and macroeconomic environment and acknowledging the ongoing selective approach to the wholesale channel, our strategy for 2026 is focused on building on the initial success of our action plan, confirmed by the solid performance of our DTC segment,\u201d Greco said.<\/p>\n
\n\tResponding to a question about the ongoing search for a chief executive officer, following the exit of Marco Gobbetti in March 2025, Greco confirmed \u201cit is in place,\u201d but he underscored that his \u201cfirst priority\u201d is that the current management \u201cmove as fast as a CEO could do and that people already in the company are doing their job with the necessary speed. I leave to your judgment the answer.\u201d<\/p>\n
\n\tRevenues in 2025 fell 5.7 percent to 976.5 million euros compared with 1.03 billion euros in 2024. At constant currency sales were down 3.8 percent.<\/p>\n
\n\tEarnings before interest, taxes, depreciation and amortization decreased 22.7 percent to 166 million euros compared with 215 million euros, with an incidence on revenues of 17 percent.<\/p>\n
\n\tAdjusted operating profit before write-downs of assets and impairment tests, excluding 46 million euros negative cost, amounted to 24 million euros compared with 35 million euros in 2024.<\/p>\n
\n\tNet loss, including a minority interest and excluding the impairment tests charge for both 2024 and 2025, amounted to 3 million euros compared with a net profit of 16 million euros in 2024. However, in the second half last year the company reported an adjusted net profit of 13 million euros compared with a loss of 16 million euros in the first half.<\/p>\n
\t\tCurrent Trading\t<\/p>\n
\n\tAsked about current trading, Greco said the U.S. \u201ccontinued to show a very strong performance as they did in the last quarter last year, with a solid double-digit growth, even though the comparison base was quite challenging.\u201d Latin America is also \u201cquite interesting\u201d for Ferragamo, and a high-single-digit growth. Pointing to a strong focus on the Americas, Greco said the company is \u201callocating special activities\u201d to those markets.<\/p>\n
\n\tEurope is being \u201cflattish\u201d although against challenging comps, and Asia-Pacific is showing double-digit growth in the DTC channel against a \u201cnot so strong 2025. [South] Korea is performing very well with a solid double-digit growth, but China is still in the negative range.\u201d<\/p>\n
\n\tJapan is dented by the lack of Chinese customers and the currency exchange, while showing a solid single-digit growth in the DTC channel at constant currency, Greco said.<\/p>\n
\t\t\t\t\tBackstage at Ferragamo fall 2026.<\/p>\n
\t\t\t\t\t\t\t\t\tMirella Malaguti\/WWD<\/p>\n
\t\tDistribution by Channel\t<\/p>\n
\n\tIn 2025, the DTC channel reached sales of 752.3 million euros, down 3.1 percent and representing 75 percent of total sales. At constant currency the channel inched up 0.4 percent. Greco said \u201cour objective remains improved store efficiency through a selective reassessment of our network and prioritizing key stores with higher productivity,\u201d and that around 70 stores that are not performing well will be closed between last year and 2026. Many of these closures will be in China, said Greco, with the goal to open new ones \u201cin more attractive cities.\u201d<\/p>\n
\n\tHe added that Ferragamo has seen \u201csome new customers in China, and a new very interesting target between 30 and 38 years old.\u201d<\/p>\n
\n\tHe also said Ferragamo has enhanced its e-commerce platform \u201cto deliver a superior online experience and have witnessed a solid growth trajectory.\u201d<\/p>\n
\n\tThe wholesale channel decreased 17.5 percent to 192 million euros. \u201cWe want to be present in markets where we have monobrand stores, or franchised, or in very nice multibrands. We don\u2019t want to compromise at all.\u201d<\/p>\n
\n\tWithout naming Saks Global and its bankruptcy, Greco said Ferragamo stopped shipments \u201c to a very important wholesaler in the U.S.\u201d in the first period of the year, but that it has now resumed them.<\/p>\n
\t\tBusiness by Geographies\t<\/p>\n
\n\tAsked whether the war in the Middle East is affecting Ferragamo, Greco said the company does not have directly operated stores in the region and that the wholesale business there \u201cis negligible, accounting for less than 2 percent last year.\u201d<\/p>\n
\n\tHe added that, if the war does extend in time, the effect for the luxury business would be \u201cindirect, with inflation up, less propensity to spend, and less travels.\u201d<\/p>\n
\n\tIn 2025, sales in Europe totaled 235.6 million euros, down 4.4 percent and accounting for 25 percent of total revenues.<\/p>\n
\n\tNorth America was down 0.9 percent to 305 million euros, representing 32.3 percent of the total. At constant currency sales in the region rose 3.1 percent.<\/p>\n
\n\tSales in Japan totaled 78 million euros, down 6 percent.<\/p>\n
\n\tSales in Asia-Pacific amounted to 246 million euros, down 15.6 percent and accounting for 26 percent of the total.<\/p>\n
\n\tRevenues in Central and South America were down 1.4 percent to 80 million euros, but at constant currency the area was up 7.9 percent.<\/p>\n
\t\t\t\t\tFerragamo<\/p>\n
\t\t\t\t\t\t\t\t\tFerragamo<\/p>\n
\t\tSales by Category\t<\/p>\n
\n\tBy category, sales of footwear amounted to 409.6 million euros, representing 43.4 percent of the total, down 11.1 percent.<\/p>\n
\n\tLeather goods fell 3.2 percent to 400 million euros, accounting for 42.3 percent of the total.<\/p>\n
\n\tApparel was down 2.4 percent to 59 million euros, representing 6.3 percent of the total.<\/p>\n
\n\tSilk and other products rose 1.4 percent to 76 million euros, representing 8 percent of the total.<\/p>\n
\n\tGreco underscored the company will continue to control and optimize its costs and reduce the number of its \u201cidle\u201d stock keeping units, as \u201cthere are too many products, some with a very modest sales turnover, and they confuse our customers. This will lower our inventory.\u201d<\/p>\n
\n\tAs of Dec. 31, capital expenditures amounted to 46 million euros compared with 71 million euros in 2024, mainly channeled into the renovation of the retail network.<\/p>\n
\n\tThe adjusted net financial position stood at 144 million euros compared with 173 million euros at the end of December 2024. Including the IFRS16 effect, the net financial position was negative, with a debt of 439 million euros at the end of December last year.<\/p>\n
#Ferragamo #Focuses #Core #Leather #Goods #Footwear #DTC<\/p>\n","protected":false},"excerpt":{"rendered":"
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