After the release of its financial statements, Salvatore Ferragamo’s stock sank on the stock market, dragging the luxury sector down with it. On Thursday afternoon, the Florentine company released its final figures for 2024: a year that ended with a drop in sales and, above all, posting a loss. The Ferragamo family is looking for a new CEO and wants to “focus more on leather goods, shoes and bags”.
Ferragamo sinks on the stock market
Salvatore Ferragamo’s shares, when this article was being written, were losing 16% due to the results communicated by the company. The Florentine brand posted a turnover 1.035 billion euro for the year 2024 (-10.5% at current exchange rates and -8.2% at constant exchange rates). The year ended with a loss of 68 million, compared to a profit of 26 million in 2023. Adjusted operating profit also struggled, halved to 35 million, though slightly above analysts’ expectations.
Retail
Footwear sales decreased 9.9% to 461 million. Those of leather goods fell 8.5% to 412.8 million, while apparel declined 17.7% to 60.4 million. “We don’t want to disrupt our strategy. The idea is to focus more on leather goods, shoes and bags”, said former CFO Ernesto Greco. Who, along with James Ferragamo and former CEO Michele Norsa, form the transitional advisory board that has taken the reins of the company pending the arrival of the new CEO.
The plans
In the conference call with analysts, Chairman Leonardo Ferragamo took stock of the situation. He confirmed how the group has started casting for the position of CEO, and will announce it “in due course”. He confirmed confidence in young creative director Maximilan Davis, to whom he will provide “full support”. “In the coming months, the goal will be to consolidate the results achieved so far, constantly moving forward with an agile and unyielding approach“. said Mr. Ferragamo, while expressing caution about short-term expectations. The Chairman also reiterated once again that his family doesn’t intend to sell, WWD reports.
Photo from archive
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