The Luxury Sector Continues to Prove Fickle as Ferragamo Reports Decline in Sales
In 2023, Ferragamo faced a 7.6 percent decline in sales compared to the previous year, with total earnings amounting to €1.16 billion, as reported in the company’s preliminary financial results.
The decrease in sales was widespread across all the globe except for the EMEA region, which experienced a 3.3% increase. Notably, North America witnessed a substantial decline of 19.2 percent, while the APAC region and central and south America reported drops of 13.1 percent and 7.1 percent, respectively, for the entire fiscal year. Japan, which has been seen as a fairly robust market for many luxury brands, faced a downturn of 12.6 percent. Wholesale channels dropped 12.1 percent.
“We are conscious of the work ahead of us and remain confident that our strategy will unleash Ferragamo’s potential,” said CEO Marco Gobbetti in a statement. “The complex market environment with the slowdown of luxury demand may impact the timing of our initial assumptions, nevertheless the commitment to our ambition is unchanged.” Just last week, the brand announced the appointment of Pierre La Tour as CFO.
Though many expected a major slowdown for the luxury sector, reports are increasingly showing 2023 to have been a mixed bag for luxury. Burberry recently issued a statement that warned of lowered profit expectations, while Tapestry has reported a similar slowdown. Meanwhile, Richemont and Louis Vuitton reported strong years, with the latter posting an impressive 13 percent increase in revenue for the full year.
