When talking about Salvatore Ferragamo there is always somebody that mentions the merger. The latest ones were from Citigroup, according to which the luxury brand is perfect for a large acquisition by one of the largest conglomerates.
But some don’t agree. First one disagreeing is Micaela Le Divelec, CEO of Ferragamo: “We have all the cards to be able to play alone. If shareholders want to make different considerations than it’s up to them”. On the other side is Goldman Sachs’s promotion of the luxury brand’s rating from “neutral” to “buy”, winked at the lifestyle section, but invested in the core business: leather goods and footwear.
Those insisting with a merger
“I don’t see any M&A operation in sight, and those that have started are at risk of failing”, added Ferragamo’s VP Michele Norsa. Le Divelec, reported MF Fashion, confirmed the recovery of sales in China and Asia, but also chose to share some important considerations regarding the brand’s future. A future influenced by the fact that “there are less and less formal occasions now, so the luxury products that are bought are all easier to wear”.
Along with the rejuvenation of the clientele (“people coming into our stores are younger and younger”), the trend, admits the CEO, pushes the brand more toward lifestyle than fashion. All done without forgetting the brand’s DNA. “Leather goods still have great unexpressed potential, and we are, at the same time, investing in the footwear business. Clothing is useful as a bridge between two worlds”.
Answering to rumors
The “we can make it on our own” from Ferragamo’s CEO is the answer to a very recent report published by Citigroup, as reported by Affari Italiani. US bank believes that, even considering the brand’s strengths and many statements made by the owners, Salvatore Ferragamo is the ideal company for an acquisition.
The evaluation made by Goldman Sachs supports the CEO’s thesis. US bank promoted the luxury brand last week, based on the improvement seen in terms of profitability and cashflow for 2022, beside from the modifications made to how the company is evaluated. Now the recommendation is to buy shares.
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