Amid macroeconomic headwinds, Ferragamo leans into its core categories while facing softness in Asia and footwear sales.
Key Takeaways
- Strategic Focus: Brand to prioritize handbags, women’s footwear, and local market tailoring in Asia.
- Total Revenues: Fell 2.6% year-over-year to €221 million; down 1% at constant exchange rates.
- Leather Goods: Sales rose 9.6%, now the brand’s top category at 44.2% of total sales.
- Footwear Weakness: Revenues declined 9.6%, underscoring the need for renewed emphasis on high-performing silhouettes.
- Regional Performance: Asia-Pacific dropped 13%, while Europe (+9.1%) and North America (+3.7%) showed gains.
Salvatore Ferragamo reported a 2.6% decline in first-quarter revenues for 2025, totaling €221 million, as a challenging macroeconomic landscape weighed heavily on consumer confidence and traffic in key regions, particularly Asia-Pacific. At constant exchange rates, the decline was milder at 1.0%.
Amid the softness, the Italian luxury brand highlighted progress in its core leather goods category, which surged 9.6% to €96.2 million, now accounting for the largest share of net sales at 44.2%. By contrast, footwear revenues slipped 9.6% to €92.1 million, prompting a strategic refresh in women’s offerings—especially pumps and ballerinas—and renewed focus on the high-end men’s Tramezza line.
“Handbags helped drive performance in the first quarter,” Ferragamo stated, noting plans to expand its carryover collection and introduce new bestsellers, including the Hug and Soft bags. The brand is also developing localized product variations for key markets like China, acknowledging the need for differentiated assortments in the region.
By channel, the direct-to-consumer (DTC) business saw a 3.6% decline, with strong showings in Europe, Japan, and Latin America offset by weakness in Asia-Pacific. Wholesale sales rose 7.9%, with positive results across all regions.
In terms of geography, EMEA led with a 9.1% gain, while Japan posted a 4.1% increase and North America grew 3.7%. Asia-Pacific dropped sharply by 13%, though the company noted signs of stabilization late in the quarter.
With market volatility and shifting trade policies looming, Ferragamo hinted at price increases in the U.S. and select global markets to manage tariff exposure and align regional pricing.
Looking ahead, Ferragamo plans 20 store renovations and 20 closures in 2025. Leadership transition remains an open question following the departure of CEO Marco Gobbetti. For now, the focus remains on product optimization, local market adaptation, and cross-selling strategies, particularly in accessories and silk.
“We are executing with flexibility and operational discipline,” Ferragamo stated, reaffirming its intent to strengthen its market position despite continued external pressures.