MILAN — Salvatore Ferragamo Group continues to weather a challenging market without a chief executive officer, but its executive board member Ernesto Greco expressed confidence in the firm operating without one.
In its third-quarter sales report released Thursday, the Italy-based luxury firm said direct-to-consumer sales were improved and sales were in-line (at current exchange) with the same period a year before. At constant exchange, third-quarter sales rose 1.7 percent.
Related Articles
However, weak traffic, particularly in Asia-Pacific, and a difficult wholesale scenario persisted, dragging down the firm’s sales results for the first nine months of 2025.
You May Also Like
Third-quarter sales totaled 221 million euros, which was in-line with similar amounts posted in the same period last year. This showed a marked improvement from the second quarter, when revenues were down 14.6 percent.
In the nine months ended Sept. 30, however, sales fell 6.6 percent to 695 million euros versus 744 million euros in the same period in 2024.
The acceleration in the third-quarter DTC sales versus the second quarter was driven by the double-digit performances in North and Latin America and the positive results in Europe, “more than offsetting the negative performance in Asia,” the firm said. The online business reported strong double-digit growth in net sales in the third quarter, driven by ferragamo.com’s performance, which registered an increase in both order number and value.
“Q4 is challenging but we hope to remain positive. Until today the direct-to-consumer channel in October is going up a bit more than what we have seen in the third quarter so we are positive a little bit on the future trend,” Greco told analysts.
He also said that the firm is uncertain whether or not it will raise prices further. On July 31, in an analyst call, Ferragamo said it increased its prices by 3.5 to 4 percent in the U.S. at the end of June, to absorb the tariffs and the currency effects.
“I am not sure we will apply other additional price increases in our business.…It will depend a lot on the U.S. dollar trend. If this currency trend remains as it is today we don’t see the necessity to increase [prices],” he said.
He added that the “tariff impact was overemphasized” and sentiment seems less critical than it was one or two quarters ago. “Still, the numbers are negative but we hope to see a better situation in the coming months, especially when the new collection will be fully available in the stores,” he said.
By geographic area, a weak consumer environment drove sales down in Asia-Pacific, which plunged 17.9 percent to 177.4 million euros. Sales in Japan fell 5.4 percent in the third quarter at constant exchange affected by a decrease in sales from Chinese tourists. In the first nine months of year, Ferragamo’s Japan sales were down 5.8 percent.
In the nine months, sales in Europe fell 4.1 percent to 177 million euros. Sales in North America were only slightly down at 0.4 percent to 206.9 million euros and revenues in Central and South America dropped 2.6 percent to 53.1 million euros.
The company said the wholesale channel fell 8 percent in the third quarter to 40 million euros, helped by positive performance in North America. In the first nine months, wholesale sales fell 15.4 percent to 145.3 million euros.
By category, sales of footwear were down 12.7 percent to 293.3 million euros in the nine-month period. Leather goods showed a 2.1 percent decrease to 286.9 million euros. Apparel fell 4.9 percent to 40.8 million euros.
In February, Ferragamo announced the departure of CEO Marco Gobbetti. The search for a CEO is ongoing. “To be honest with you I am much more interested in the capacity of the company in doing things with or without a CEO, and the company is capable of going on in any case,” Greco said.
In the second-quarter results announced in July, the firm unveiled a strategy that included brand-positioning, aligning its style, product and communication and distribution, in order to improve sales by the end of 2025 and into 2026. The firm is also hoping to attract new consumers.
Greco said small leather goods accessories were performing well, especially after the firm worked hard to change the display of such products in key stores. In some markets like the U.S., Ferragamo has captivated a demographic of 30 to 35 years old, in addition to its normal customer base.
The spring 2026 fashion show in Milan, in September, was a success both with the media and clients.
Looking ahead, Greco said for the full year gross margin is settling at 68 to 69 percent. “Unfortunately, this year, 2025 we are not going to see the 71 percent we saw last year.…If you want an indication for the full year, I believe 68 to 69 percent is a good indication.”
Following the earnings, analysts were positive on the results, saying revenues were above forecasts. In a report, Citi said the firm was gaining traction. Total revenues of 221 million euros were above Citi’s forecast of 208 million euros, “driven by stronger-than-expected retail.”