PRESS RELEASE
The Board of Directors of Salvatore Ferragamo S.p.A. approves the Half Year Financial Report as of 30 June 2025
- Revenues: 474 million Euros (-9.4% vs. 523 million Euros at 30 June 2024, -7.1% at constant exchange rates1), mainly penalized by the Wholesale channel which reported Revenues at 105 million Euros (-17.9% vs. 128 million Euros at 30 June 2024, -14.0% at constant exchange rates1), while DTC2 Revenues came at 357 million Euros (-6.5% vs. 382 million Euros at 30 June 2024, -5.0% at constant exchange rates1)
- Gross Profit: at 321 million Euros (-15.0% vs. 377 million Euros at 30 June 2024), at 67.7% of Revenues (vs. 72.1% at 30 June 2024)
- Gross Operating Profit (EBITDA3): 73 million Euros (-38.1% vs. 117 million Euros at 30 June 2024)
- Adjusted* Operating Profit (EBIT): Operating Profit negative for 3 million Euros (vs. 28 million Euros positive at 30 June 2024); Operating Profit (including the -41 million Euros of the Impairment Test) at -44 million Euros
- Adjusted* Net Profit: negative for 16 million Euros (vs. positive 6 million Euros at 30 June 2024); Net Profit (including the -41 million Euros of the Impairment Test) at -57 million Euros
- Net Financial Position5: positive for 119 million Euros (vs. 167 million Euros positive at 30 June 2024)
(*) Adjusted Operating/Net Profit/(Loss) is Operating/Net Profit/(Loss) before Write-downs of tangible assets, intangible assets, investment properties and right-of-use assets, resulting from impairment tests conducted in accordance with IAS 36 and IAS 40.
Since the second quarter - characterized by a very challenging and deteriorated consumer environment, particularly in Asia Pacific, and a very negative wholesale scenario - we have undertaken a comprehensive diagnostic of our brand positioning, with the objective to ensure full clarity and alignment across style, product, communication and distribution channels. This has led to the identification of key business priorities and the development of a focused action plan.We have already started implementing tangible changes and are confident that these efforts will become increasingly effective by the end of this year and then even more in 2026.
With respect to our product offer, we are working on recognizable aesthetics, leveraging on our heritage symbols and codes. The focus will be on our core leather offering, shoes and leather goods, enhancing desirability through craftsmanship and innovation. Our goal is to deliver a global assortment, partially diversified by geography, ensuring a stronger alignment with our target clients. This will be achieved through a more punctual and efficient collection structure, featuring higher depth, fewer SKUs, and an optimized pricing architecture.
In order to achieve these objectives, we will strengthen the ladies' shoes category, elevating the iconic Vara family, updated with a contemporary twist, and sustaining our new pillar Zina, while covering all essential functionalities from pumps to ballerinas and moccasins.
We will maximize the men's shoes assortment, reinforcing our carryover offer and adding new seasonal injections across key categories like moccasins, sneakers and drivers. We will continue to support our signature formal segment, led by our Tramezza icon, while also exploring new growth opportunities.
We are completing the handbag offering to cover all key functions and price points, while continuing to support the Hug line and introducing new complementary lines, such as the Soft Bag, to reinforce our brand image and authority in leather goods.
We are also renewing our efforts on the leather accessories and silk offer to drive traffic increase and cross-selling.
We are revising our storytelling through a global communication strategy with local amplifications, coordinating all touchpoints while boosting clienteling initiatives, like in-store events, collaborations and more frequent and engaging digital content. Through better targeting and clearer narrative, we have been able to increase the efficiency of our marketing spend significantly. We will continue to optimize our wide store network, while advancing the renovation plan also via cost-effective actions and attractive visual merchandising. We keep also boosting our online presence and, as a result, net sales on ferragamo.com have shown a double-digit increase in the first half of the year. On wholesale, we are progressively focusing on key accounts.While the geopolitical and macroeconomic environment remains uncertain, we will continue to strengthen our strategic positioning, to convey a clear brand image, consistent with our clientele expectations, ensuring the alignment of style, product offer and communication tools. We will keep on executing with operational flexibility and financial discipline, optimizing our cost structure to reflect current business needs, without compromising on future growth. This will be achieved through a comprehensive revision of all line item expenses and processes.
Florence, 31 July 2025 - The Board of Directors of Salvatore Ferragamo S.p.A. (EXM: SFER), parent company of the Salvatore Ferragamo Group, in a meeting chaired by Leonardo Ferragamo, examined and approved the Half Year Financial Report as of 30 June 2025, drafted according to IAS/IFRS international accounting principles (Limited Audit).
Notes to the Income Statement for H1 2025
Consolidated Revenue figures
As of 30 June 2025, the Salvatore Ferragamo Group reported Total Revenues of 474 million Euros down 9.4% at current exchange rates and down 7.1% at constant exchange rates1vs. H1 2024. The result was impacted in particular by the deteriorating consumer environment, the challenging wholesale scenario and the persistent weakness of the Asia Pacific area.
In particular, in Q2 2025, Total Revenues amounted of 253 million Euros down 14.6% at current exchange rates and down 11.8% at constant exchange rates1vs. Q2 2024, mainly penalized by the wholesale business.
Net Sales by distribution channel
As of 30 June 2025, the DTC2channel posted a decrease in consolidated Net Sales of 6.5% at current exchange rates (-5.0% at constant exchange rates1) vs. H1 2024, with the positive results at constant exchange rates1in Europe and Latin America only partly offsetting the negative performance in Asia Pacific and Japan.
In Q2 2025 the DTC2channel reported a decrease in Net Sales vs. Q2 2024 of 5.4% at constant exchange rates1, only slightly deteriorating vs. Q1 2025, despite the harder comparison base. This trend was mainly due to the worsening performances in Europe and Japan, driven by lower tourists' purchases, compensated by improving trends in North America, Latin America and Asia Pacific.
As of 30 June 2025, The Wholesale channel registered a decrease in Net Sales of 17.9% at current exchange rates (-14.0% at constant exchange rates1) vs. H1 2024, and -34.3% at current exchange rates (-29.6% at constant exchange rates1) in Q2 2025 vs. Q2 2024, mainly due to the challenging wholesale environment.
Net Sales by geographical area
EMEA in H1 2025 posted a decrease in Net Sales of 7.8% (-8.6% at constant exchange rates1) vs. H1 2024, with the positive result of the DTC2offset by the negative performance of the Wholesale business. In Q2 2025 DTC2in EMEA at constant exchange rates1was 3.7% below Q2 2024, mainly due to lower tourists' purchases vs. Q1 2025, while the very negative performance of the Wholesale channel penalized the region, bringing total Net Sales down 19.5% at constant exchange rates1vs. Q2 2024.
North America in H1 2025 recorded a decrease in Net Sales of 3.9% (-1.4% at constant exchange rates1) vs. H1 2024, with DTC2in line with last year at constant exchange rates1, thanks to the positive performance of the primary channel. In Q2 2025 the positive performance of the DTC2, slightly accelerating vs. Q1, was offset by the negative Wholesale business, which drove total Net Sales down 3.3% at constant exchange rates1vs. Q2 2024.
Net Sales in H1 2025 in Central and South America increased 11.6% at constant exchange rates1and were 3.5% below H1 2024 at current exchange rates, penalized by exchange rates trends. The DTC2showed a double-digit positive performance at constant exchange rates1, while Wholesale was low-single digit below last year. In Q2 2025, the ongoing double-digit performance of the DTC2at constant exchange rates1was partly penalized by the negative Wholesale business, and the region reported an increase in total Net Sales of 11.2% at constant exchange rates1vs. Q2 2024.
Asia Pacific in H1 2025 registered a 18.5% decrease in Net Sales (-16.3% at constant exchange rates1) vs. H1 2024, challenged by the ongoing weak consumer environment significantly impacting traffic. In Q2 2025, the improvement registered in the DTC2vs. Q1 2025 was offset by the deterioration of the Wholesale business, bringing total Net Sales down 18.6% at constant exchange rates1vs. Q2 2024.
The Japanese market in H1 2025 registered a 3.5% decrease in Net Sales (-4.9% at constant exchange rates1) vs. H1 2024, due to the deteriorating trend in Q2 (-12.6% at constant exchange rates1vs. Q2 2024), mainly due to the harder comparison base versus last year and lower Chinese tourists' purchases.
Gross Profit
In H1 2025 Gross Profit amounted to 321 million Euros, down 15.0% vs. 377 million in H1 2024, with 67.7% incidence on Revenues, down vs. 72.1% in H1 2024, mainly due to the negative exchange rate impact and higher provision for inventory obsolescence related to products of previous collections.
Operating Costs
In H1 2025 Net Operating Costs, excluding 41 million Euros related to write-down resulting from the Impairment Test mainly related to the assets in China and Korea, amounted to 324 million Euros, down 7.4% at current exchange rate vs. H1 2024 (-6.3% at constant exchange rates1), thanks to the focus on cost control. Including the Impairment Test charge, in H1 2025 Net Operating Costs amounted to 365 million Euros vs. 350 million Euros in H1 2024, up 4.4% at current exchange rate.
Gross Operating Profit (EBITDA3)Gross Operating Profit (EBITDA3) amounted to 73 million Euros, from 117 million Euros of H1 2024, with an incidence on Revenues of 15.3% from 22.4% in H1 2024.
Operating Profit (EBIT)
Operating Profit (EBIT) adjusted4, excluding the 41 million Euros negative cost component of the Impairment Test, was negative for 3 million Euros vs. 28 million Euros positive in H1 2024. Including the Impairment Test charge, the H1 2024 Operating Profit (EBIT) was negative for 44 million Euros.
Profit before taxes
Profit before taxes in H1 2025 was negative for 65 million Euros, vs. 15 million Euros positive in H1 2024.
Net Profit for the Period
Net Profit for the period, including the Minority Interest, was negative for 57 million Euros vs. 6 million Euros positive in H1 2024. Excluding the Impairment Test charge, Net Profit for the period was negative for 16
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