Italian luxury brand Salvatore Ferragamo reported a 9.4% drop in first-half revenue to €474 million ($545.1 million) on Thursday, citing wholesale channel challenges and soft global demand.
The group recorded a net loss of €57 million ($65.6 million) for the period.
“The result was affected in particular by the deterioration in the consumer environment, the difficult wholesale context and persistent weakness in the Asia-Pacific region,” the company said in a statement.
Revenue from wholesale declined 17.9% to €105 million ($120.8 million), compared to the first half of 2024. Direct-to-consumer sales also fell, down 6.5%.
In the Asia-Pacific region—Ferragamo’s largest market—sales dropped 18.5% to €128.4 million ($147.7 million), reflecting continued softness in consumer demand.
In the Europe, Middle East, and Africa (EMEA) region, revenue declined 7.8%, as gains from direct sales were offset by weaker wholesale performance.
Meanwhile, sales in Central and South America rose 11.6%, marking the brand’s only regional growth during the first half.
“We have completed a thorough review of our brand positioning,” the company said. “This has helped us identify key commercial priorities and define a targeted action plan.”
Ferragamo added it has “already begun implementing concrete changes” and expressed confidence that these efforts “will deliver increasing impact by the end of 2025, and more significantly in 2026.”
Florence (Italy), July 31, 2025 (AFP)
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