Results will be presented in August, but UBS discussed its forecasts and estimates for Ferragamo, reporting an expected -6% for 293 million euros in total sales. In short, Ferragamo will not recover in the April-June 2024 quarter, and the markets are adjusting accordingly: after UBS’s recommendation to sell, the brand’s stock lost 12.66% on the day of June 27 alone in Piazza Affari.
Ferragamo will not recover
Of course, half of the misfortune isn’t attributable to Ferragamo. But it is meager consolation for the brand, that in the same report UBS draws “an unencouraging environment” for the entire sector, with target-price cut even for companies that continue to perform positively such as Brunello Cucinelli. The fundamentally negative assessment remains for the Tuscan brand though, as creative leader Maximilian Davis and managerial leadership of Marco Gobbetti is trying to break a two-year stalemate.
Analysts at the Swiss institute state “an increasingly cautious view of the turnaround trajectory”, reads Il Sole 24 Ore. The second quarter of 2024 will be better than the first, but still down 6% year-on-year. This report also states that Ferragamo is performing “among the weakest in the industry“. The target price drops from 9.5 to 9 euros per share.
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