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Miami Herald
18-05-2025
- Business
- Miami Herald
Luxury giant Ferragamo stumbles with no CEO and crashing sales
Something's off when a luxury house known for precision and polish begins slipping - fast. Even worse? There's no one permanently in the driver's seat. That's exactly where one iconic fashion brand finds itself. Related: Luxury fashion group reeling after disastrous quarter After a rocky Q1, it's dealing with shrinking demand, steep regional losses, and a C-suite that's still missing its top boss. Don't miss the move: Subscribe to TheStreet's free daily newsletter Another red flag? Its most important region appears to have taken a detour. With traffic down and transitional leadership in place, it's unclear who's making the calls or when the brand will course-correct. According to the company's latest press release, Salvatore Ferragamo (SFRGF) pulled in €221 million (~$245 million) in Q1 2025, down 2.6% from last year. The company blamed "a difficult macroeconomic environment" for keeping shoppers out of stores. Asia Pacific, which accounts for nearly a third of Ferragamo's global business, dropped 13% - the biggest regional hit by far. Then there's footwear, Ferragamo's most iconic category, which slid 9.6%. That's no small hit, considering footwear makes up a hefty 46.4% of the brand's total revenue. Related: Viral beauty brand suffers massive sales drop amid big shakeup That kind of dip isn't just a blip. It's a signal that the brand's product refresh isn't landing, especially with the younger, fashion-forward customers Ferragamo has been trying to win over. All of this is playing out without a permanent CEO. Marco Gobbetti stepped down in March, and Chairman Leonardo Ferragamo is currently assuming executive powers for company governance, backed by a transition committee. Ferragamo says it's revamping its product lines, leaning harder into digital marketing and trying to reengage customers through new pricing and store experiences. But turning the ship around without a captain is a tall order, especially in a luxury market that's become more competitive (and more crowded) by the day. The brand is betting big on leather goods to carry it forward. But execution matters - and right now, execution is in limbo. Until Ferragamo names a new CEO and proves it can stabilize sales, the uncertainty around its future isn't going anywhere. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
16-05-2025
- Business
- Yahoo
Ferragamo revenue slips as Asia Pacific sales decline 13%
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Salvatore Ferragamo SpA reported a Q1 2025 revenue decline of 2.6% of 221 million euros, or about $247 million, for the period ended March 31, according to a Wednesday earnings release. The company's biggest pain point for the quarter was a 13% sales decline in the Asia Pacific, excluding Japan, which represents 29.3% of its regional business. The company attributed the downturn to 'overall weak consumer environment significantly impacting traffic.' Meanwhile, overall net sales in Ferragamo's DTC channel slipped 3.6% to 164 million euros, while wholesale channel sales rose 7.9% to 54 million euros for the period. Ferragamo has been without a CEO since March, when Marco Gobbetti left by mutual agreement and ended his relationship with the company. Chairman Leonardo Ferragamo has been given executive powers in the interim, and is currently supported by a transition chairman advisory committee while the company searches for new leadership. Financially, Ferragamo's first quarter looks significantly different this year than it did a year ago, when the company posted an 18.3% revenue slide, led by a 38.3% wholesale channel decline and further hurt by an 11.1% DTC sales dip. This year, the company said it's looking to focus its product strategy as well as add 'different price points and functions in all categories.' Ferragamo said in the release that its main priority for the beginning of 2025 was its leather core business. The company plans to further consolidate its handbag category and strengthen the presence of its Hug bag, first introduced in 2023. In addition, the company said it was working to optimize its women's footwear division. Ferragamo's footwear division suffered the biggest loss for the quarter, falling 9.6% to about 92 thousand euros. That decline was directly offset by a 9.6% increase to more than 96 thousand euros in the leather goods division. Apparel dropped 3% to about 13 thousand euros, while the company's silk and other goods division was down 1.9% to about 16 thousand euros. Separate from its losses in the Asia Pacific region, Ferragamo posted a 4.1% sales increase in Japan, which represents 9.1% of its business. The company said the uptick was mainly driven by tourists' purchases. Sales in Europe, the Middle East and Africa rose 9.1% in Q1. The region represents about 25% of Ferragamo's total net sales and saw upticks at both its DTC and wholesale channels due to increased U.S. tourist spending and more local purchases. North America, which accounts for just under 29% of the company's business, posted DTC and wholesale gains that led to an overall sales increase of 3.7% for the region. Elsewhere, the company's sales in Central and South America dropped 0.8%, and that region represents 7.6% of Ferragamo's business. 'The difficult macroeconomic environment, weighing on consumers' confidence, impacted the first quarter's performance, driving a decrease in traffic, only partly offset by higher conversion rate and increase in the average ticket,' the company said in its release, adding that it was mindful 'of the increasingly uncertain scenario.' Recommended Reading Apparel, luxury spending fell in the beginning of 2025: report Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
15-05-2025
- Business
- Business Times
Asia weakness, trade war weigh on Ferragamo revenues, slide continued in April
[MILAN] Sales at Salvatore Ferragamo fell in April, the Italian luxury goods group said on Wednesday (May 14) as it posted a 1 per cent revenues drop for the first quarter hit by weak demand in the Asia-Pacific region. The quarterly change strips out the impact of currency moves. Net sales plunged almost 14 per cent in the Asia-Pacific area. Trade tensions making US shoppers more cautious also played a role. The Florentine group, currently without a chief executive after the exit of Marco Gobbetti, reported revenues of 221 million euros (S$322 million) for the January to March period, broadly in line with a Visible Alpha analyst consensus figure of 223 million euros. Gobbetti left two months amid tensions with the founding family after failing to stem a slide in sales at the brand which was worn by Audrey Hepburn in the 1950s but has struggled to adapt to fast-changing luxury trends in recent years. The group said that the tough macroeconomic environment had hurt consumer confidence and brought fewer buyers into its shops, especially towards the end of March, leading up to US President Donald Trump's Apr 2 tariff announcement. The lower shop traffic was only partly offset by a bigger proportion of visits translating into actual purchases and by a higher average cost for such buys. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up 'In the last 10 days of March we have seen a lot of negative events impacting the luxury business,' Greco said. The negative sales trend continued in April, executive board member Ernesto Greco told analysts. In terms of geographies, trade tensions and ensuing turmoil in financial markets had the biggest impact on the United States, Greco said, adding also Europe had also suffered as the situation made US tourists more reluctant to shop. US tariffs, if they are maintained, will have an impact on prices as the group passes on the higher cost to consumers, Greco said. 'We want to absorb at least the tariffs... we are ready to implement a mid-single-digit price increase and probably we will apply a fine tuning on prices in all other markets in order to balance the pricing gap.' REUTERS
Business of Fashion
14-05-2025
- Business
- Business of Fashion
Ferragamo's Revenues Fell 1% in First Quarter, Dragged by Weak Sales in Asia
Italian luxury group Salvatore Ferragamo reported on Wednesday a 1 percent decline in sales at constant exchange rates for the first quarter, due to weak sales in the Asia Pacific region. The company, currently without a CEO after the exit of Marco Gobbetti two months ago, posted revenues of €221 million ($247.50 million) in the quarter, slightly below a Visible Alpha analysts' consensus of €223 million. 'The difficult macroeconomic environment, weighing on consumers' confidence, impacted the first quarter's performance, driving a decrease in traffic, only partly offset by higher conversion rate and increase in the average ticket,' the group said in a statement. By Elisa Anzolin; Edited by Gianluca Semeraro Learn more: Ferragamo Sales Down 17% in First Quarter Revenues totalled €227 million ($244.5 million), below analyst expectations of €237 million according a LSEG consensus.
Asharq Al-Awsat
14-05-2025
- Business
- Asharq Al-Awsat
Ferragamo's Revenues Fell 1% in First Quarter, Dragged by Weak Sales in Asia
Italian luxury group Salvatore Ferragamo reported on Wednesday a 1% decline in sales at constant exchange rates for the first quarter, due to weak sales in the Asia Pacific region. The company, currently without a CEO after the exit of Marco Gobbetti two months ago, posted revenues of 221 million euros ($247.50 million) in the quarter, slightly below a Visible Alpha analysts' consensus of 223 million euros. "The difficult macroeconomic environment, weighing on consumers' confidence, impacted the first quarter's performance, driving a decrease in traffic, only partly offset by higher conversion rate and increase in the average ticket," the group said in a statement.
