The Italian luxury house records steady third-quarter results as it continues operating without a CEO
Salvatore Ferragamo Group continues to operate without a chief executive officer, but executive board member Ernesto Greco stated that the company is functioning effectively in the absence of one.
In its third-quarter sales report released on Thursday, the Italy-based luxury firm reported that direct-to-consumer sales showed improvement. Overall, quarterly sales were in line with the same period last year at current exchange rates. At constant exchange rates, sales increased by 1.7 percent in the third quarter.
The company noted that weak consumer traffic, especially in the Asia-Pacific region, and a challenging wholesale environment affected sales during the first nine months of 2025.
Third-quarter sales reached 221 million euros, which was similar to figures from the same period last year. This result was an improvement over the second quarter, which saw revenues decrease by 14.6 percent.
For the nine months ending September 30, sales fell by 6.6 percent to 695 million euros, compared with 744 million euros in the same period in 2024.
The company stated that the growth in direct-to-consumer sales in the third quarter compared to the second quarter was driven by double-digit gains in North and Latin America and positive results in Europe. These gains “more than offset the negative performance in Asia,” according to the firm. The online business also reported strong double-digit growth in net sales for the quarter, with ferragamo.com seeing increases in both order volume and value.
Greco commented to analysts,
Q4 is challenging but we hope to remain positive. Until today the direct-to-consumer channel in October is going up a bit more than what we have seen in the third quarter so we are positive a little bit on the future trend.”
Addressing price strategies, he added, “I am not sure we will apply other additional price increases in our business.…It will depend a lot on the U.S. dollar trend. If this currency trend remains as it is today we don’t see the necessity to increase [prices].”
Greco also stated, “tariff impact was overemphasized” and noted that sentiment around the company’s prospects appears less critical compared to earlier quarters. “Still, the numbers are negative but we hope to see a better situation in the coming months, especially when the new collection will be fully available in the stores,” he said.
In terms of geographical performance, sales in the Asia-Pacific region decreased by 17.9 percent to 177.4 million euros, impacted by a weak consumer environment. In Japan, sales fell by 5.4 percent in the third quarter at constant exchange rates, influenced by reduced spending from Chinese tourists. For the first nine months of the year, sales in Japan were down 5.8 percent.
European sales for the nine-month period fell 4.1 percent to 177 million euros. Sales in North America were down 0.4 percent to 206.9 million euros, while revenues in Central and South America declined 2.6 percent to 53.1 million euros.
The company added that the wholesale channel dropped 8 percent in the third quarter to 40 million euros, with North America helping to offset some declines. For the nine months, wholesale sales were down 15.4 percent to 145.3 million euros.
By product category, nine-month footwear sales declined 12.7 percent to 293.3 million euros. Leather goods sales decreased 2.1 percent to 286.9 million euros, and apparel sales fell 4.9 percent to 40.8 million euros.
Ferragamo has been without a CEO since February, following the departure of Marco Gobbetti. The search for a successor is ongoing. Greco commented,
To be honest with you I am much more interested in the capacity of the company in doing things with or without a CEO, and the company is capable of going on in any case.”
In July, the company announced a strategic plan aimed at repositioning the brand’s style, product range, communication, and distribution, with the goal of improving sales by the end of 2025 and into 2026. Attracting new consumers remains a priority.
Greco noted that small leather goods and accessories are performing well, crediting improved product displays in key stores. He also highlighted growth in the 30 to 35-year-old demographic in the U.S. market in addition to the existing customer base.
The company’s spring 2026 fashion show in Milan reportedly received positive feedback from media and clients.
Looking forward, Greco indicated that the gross margin for the full year is expected to settle between 68 and 69 percent. He stated, “Unfortunately, this year, 2025 we are not going to see the 71 percent we saw last year.…If you want an indication for the full year, I believe 68 to 69 percent is a good indication.”
