Salvatore Ferragamo registered a significant declined in adjusted operating profits in 2024, with earnings more than halved, as the Italian luxury leather goods group navigates leadership changes and market headwinds.
The Group’s adjusted earnings before interest and taxes (EBIT) declined to €35 million, surpassing analysts' consensus expectations, which were around €30 million. In 2023, the comparable figure was €79 million.
The group reported a net loss of €68 million in 2024, a stark contrast to the €26 million profit recorded the previous year.
Ferragamo's revenues declined by 4 per cent at constant currencies in Q4, FY24. The company attributed this sharp decline to a slowdown in Asian markets, particularly in China, and a challenging global wholesale environment, according to its recent earnings statement.
However, despite these challenges, the company highlighted ‘encouraging results’ from its direct-to-consumer sales, which remained flat overall in the last three months of the year.
Marco Gobbetti, CEO stepped down after a three-year tenure marked by persistent sales declines at the Florentine brand. A former CEO with Burberry, Gobbetti failed to reverse the company's downward trend.
Leonardo Ferragamo, Chairman announced full support to designer Maximilian Davis, appointed creative director in 2022. The chairman also reaffirmed the Ferragamo family's commitment to the company.
