Along with Burberry, Gucci (and Kering), the relaunch of Salvatore Ferragamo will take longer than expected. The goals announced by its CEO, Marco Gobbetti (to double sales to 2.2 billion euros by 2027), are increasingly distant. Especially after the first quarter 2024 results. Whatever the case may be, the Ferragamo family has confirmed Gobbetti as CEO, as the latter in turn says he is confident for future based on the improvements seen in recent months.
Everything down, especially apparel
In the first quarter of 2024, Salvatore Ferragamo’s revenue was 227 million euro, below the analysts’ expectations of 237 million euro, according to the LSEG consensus cited by Reuters. Revenues fell 16.6% at constant exchange rates and 18.3% at current exchange rates. Revenues from footwear sales, at current exchange rates, fell 18.3% to 101.9 million euros. Those from leather goods fell 18.5% to 87.7 million. Apparel fell 30.5 percent to 13.4 million. The drop in revenue can be attributed to the brand’s difficulties in China, within a general slowdown in sales in all geographical areas and channels.
Ferragamo’s relaunch will take longer
“In April, sales in the direct-to-consumer channel were slightly negative, but the trend is improving”, Gobbetti explained in the conference call with analysts. According to Citi, Gobbetti conveyed the positive impression that Ferragamo may be close to a turning point within the brand’s turnaround plan. “Although the previously announced mid-term targets are a remote possibility, we believe the Ferragamo family will continue to support the company’s turnaround, having recently confirmed CEO Marco Gobbetti until December 2026. Similar to Burberry and Kering, Ferragamo’s turnaround is slower than expected,” writes Citi’s Thomas Chauvet in commenting on the brand’s data.
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