On March 11, the Italian luxury goods group Salvatore Ferragamo Group released its full-year results for 2025: affected by negative currency exchange impacts and the clearance of previous collections, total revenue declined by 5.7% year-on-year to EUR 977 million, with the decrease narrowing to -3.8% at constant exchange rates; net sales amounted to EUR 944.2 million, down 6.4% (at constant exchange rates: -3.7%).
By region, net sales in the Asia Pacific market, including the Chinese Mainland, fell 15.6% to EUR 246 million (at constant exchange rates: -11.5%). Within this, the DTC channel in the Chinese Mainland market achieved positive growth at constant exchange rates in the fourth quarter.
At the profitability level, due to impairment testing charges of up to EUR 46 million, including assets in the Chinese Mainland and South Korea markets, the Group recorded a net loss of EUR 49.153 million. Excluding the impairment impact, the adjusted net loss narrowed to EUR 3 million.
It is worth noting that the Group’s profitability improved in the second half of 2025. Total revenue in the second half reached EUR 503 million, with the year-on-year decline narrowing to 0.4% at constant exchange rates. The DTC (direct-to-consumer) channel achieved positive growth of 5.5% at constant exchange rates.
Driven by the improving performance, Salvatore Ferragamo Group’s share price rose 10.93% to EUR 6.75 per share on March 12, bringing its latest market capitalisation to EUR 1.1 billion.
In the financial report, the Group interpreted its current strategic progress as follows, “Within a volatile global landscape characterised by ongoing geopolitical tensions and macroeconomic instability weighing on consumer demand, starting from the second quarter last year, we launched a precise definition of our brand positioning to ensure a full alignment, true to our Heritage values, across design, product offer, communication and distribution, in line with evolving consumer expectations. “
Regarding brand strategy and operational highlights, the financial report disclosed the following key information:
- Focusing on core leather goods: continuous innovation in core iconic products such as Vara and Tramezza within the men’s and women’s core footwear categories; the leather goods division expanded the Hug line and broadened the product offering through new bestsellers such as the Soft bag.
- Embracing artificial intelligence (AI) and digitalisation: in communications, AI technologies were integrated to optimise targeting and operational efficiency, with a digital-first approach deployed across all touchpoints. At the same time, the e-commerce platform was strengthened and achieved a solid growth trajectory.
- Optimising retail and wholesale networks: leveraging data and AI technologies to enhance customer relationships, selectively reassessing the retail network with priority given to more productive key stores. A more refined wholesale strategy was also implemented, focusing on key clients aligned with the brand positioning.
- Share buyback update: the Board of Directors has approved a proposal to authorise the purchase and disposal of treasury shares, with a buyback of up to 5% of the company’s share capital and a maximum total amount of EUR 53 million, aimed at enhancing liquidity, seizing market opportunities, or serving incentive plans based on financial instruments.
—— Net sales (by product category):
- Footwear: EUR 409.6 million, down 11.1% (at constant exchange rates: -8.1%), accounting for 43.4% of net sales
- Leather goods and handbags: EUR 399.6 million, down 3.2% (at constant exchange rates: -0.6%), accounting for 42.3% of net sales
- Ready-to-wear: EUR 59.02 million, down 4% (at constant exchange rates: +0.2%), accounting for 6.3% of net sales
- Silk and other: EUR 76.008 million, up 1.4% (at constant exchange rates: +3.2%), accounting for 8.0% of net sales
—— Net sales (by channel):
- DTC (direct-to-consumer): EUR 752.3 million, down 3.1% (at constant exchange rates: +0.4%), accounting for 77.0% of net sales. For the full year 2025, the DTC channel achieved positive growth at constant exchange rates in the United States, Europe and Latin America, offsetting weaker performance in the Asian market. In the fourth quarter, the DTC channel recorded positive year-on-year growth at constant exchange rates across all regions, accelerating to 6.3% compared with the third quarter.
- Wholesale: EUR 191.9 million, down 17.5% (at constant exchange rates: -17.1%), accounting for 19.7% of net sales. In the fourth quarter, net sales in this channel declined 30.6% year-on-year at constant exchange rates, reflecting the Group’s renewed focus on controlled distribution and key clients in alignment with its brand image.
—— Net sales (by market):
- EMEA (Europe, Middle East and Africa): EUR 235.6 million, down 4.4% (at constant exchange rates: -6.5%), accounting for 25.0% of net sales. In the fourth quarter, the DTC channel in this region achieved mid-single-digit positive year-on-year growth, driven by improved conversion rates and higher average transaction values, though offset by double-digit declines in the wholesale channel.
- North America: EUR 304.8 million, down slightly by 0.9% (at constant exchange rates: +3.1%), accounting for 32.3% of net sales. In the fourth quarter, mainly benefiting from a solid comparison base, the DTC channel achieved high single-digit year-on-year growth at constant exchange rates.
Central and South America: EUR 79.788 million, down 1.4% (at constant exchange rates: +7.9%), accounting for 8.4% of net sales. The DTC channel achieved double-digit growth at constant exchange rates for the full year; in the fourth quarter, both DTC and wholesale channels recorded mid-single-digit positive year-on-year growth. - Asia Pacific: EUR 246 million, down 15.6% (at constant exchange rates: -11.5%), accounting for 26.0% of net sales. Although the full-year performance was mainly dragged down by wholesale operations, in the fourth quarter, the DTC channel recorded positive year-on-year performance at constant exchange rates in South Korea, the Chinese Mainland and Southeast Asia.
- Japan: EUR 77.97 million, down 6.0% (at constant exchange rates: -3.0%), accounting for 8.3% of net sales. The market rebounded in the fourth quarter, with total net sales rising 2.8% year-on-year at constant exchange rates.
| Source: Official financial report
| Image Credit: Group official website
| Editor: Luxeplace
