MILAN — Salvatore Ferragamo’s efforts to improve profitability began to pay off in the first half, despite declining sales in Europe and Asia.
On Monday, the Florence-based luxury company reported net profit of 1.5 million euros, compared with an adjusted net loss of 16 million euros a year earlier. Operating profit reached 20.9 million euros versus an adjusted operating loss of 2.9 million euros in the first half of 2025.
While Ferragamo continued to focus on its core shoes and leather goods category, direct-to-consumer performance was up 1.8 percent on a reported basis and 6.1 at constant exchange, offsetting Salvatore Ferragamo’s wholesale performance, which saw sales fall 11.6 percent on a reported basis and 11.2 at constant exchange rates. Product-category data showed sales of footwear were up 2.7 percent in constant currency, while apparel was up 1.8 percent and leather goods were down 6.6 percent.
“Our strategy is focused on core business and the bag category is the most important. The average price is quite high and the marginality is quite interesting,” said executive board member Ernesto Greco on a conference call with analysts, adding that the firm is focused on reinforcing the appeal of the brand and that the Hug bag remains one of its bestsellers.
Overall, revenues in the first half fell 1.3 percent to 467.8 million euros. At constant exchange, Salvatore Ferragamo’s sales rose 1.9 percent for the six months ended June 30. The firm said second-quarter revenues rose 2.4 percent to 259 million euros, or 4.6 percent at constant exchange rates.
Greco said measures like the re-platforming of e-commerce structure, supply chain optimization and improving agility were among the efforts that helped the company strengthen its performance in challenging markets. Sales in Asia fell 6.4 percent on a reported basis and 3 percent at current exchange in the half, dragged down by Japan, which dropped 13 percent in the first half as Chinese tourists pulled back. As a result, the company said it is focusing its efforts on the local customer in Japan.
North America, Ferragamo’s largest market by sales, rose 9.7 percent at current exchange rates and 15.4 percent at constant exchange rates. In response to analyst questions about July trading, Greco said U.S. sales were strained by a shortened discount period and inclement weather.
Europe, the company’s third largest market by sales, saw its sales fall 9 percent at current exchange and 8.6 percent at constant exchange, while sales in Central and South America were up 11.8 percent at current exchange and 6.8 percent at constant exchange.
In the first half of 2026, Salvatore Ferragamo swung to an adjusted operating profit of 20.9 million versus an adjusted operating loss of 2.91 million euros a year earlier. The prior-year figure excludes a 41 million euro impairment charge.
After the conference call, analysts at Bernstein said this figure was above expectations and reflected the firm’s efforts to optimize costs. “EBIT came in significantly above consensus expectations at 20.9 million euros — with no impairments — versus 2.9 million adjusted losses before interest and taxes in the first half of 2025. This result is due to operating costs being down 17 percent year on year reflecting an optimization of the organization and more disciplined cost management,” the note said.
Greco explained that the company is focused on building sustainable growth and strengthening the brand’s profile.
“Ferragamo is concentrated on the next medium-long term. We want to create the basis, the foundations for a very solid company. Our priority today is to reinforce the appeal of the brand.”
Salvatore Ferragamo
Courtesy of Salvatore Ferragamo
No CEO Yet
There was no mention made during the call of the potential arrival of a chief executive officer.
In April, as previously reported, Fabrizio Freda, the former longtime CEO of The Estée Lauder Companies, was appointed special strategic adviser by Ferragamo Finanziaria SpA, the holding company of the Ferragamo family and the controlling shareholder of the fashion group.
Freda is tasked with contributing to strategic decisions, including the selection of the future CEO of the Florence-based fashion brand, and the strengthening of the structure and operations of the Ferragamo Group as well as the family’s other businesses, which range from hospitality to real estate.
Since the exit of Marco Gobbetti as CEO of Salvatore Ferragamo last March, executive chairman Leonardo Ferragamo has been spearheading the strategy of the company with a transitional chairman advisory committee. It is made up of James Ferragamo, chief transformation and sustainability officer, and son of Ferruccio Ferragamo; Greco, and former CEO Michele Norsa, who has taken on the role of special chairman adviser.
