The company’s direct-to-consumer (DTC) channel, which includes retail stores and e-commerce, posted 0.4 per cent growth at constant exchange rates, while the wholesale business remained weak, falling sharply as the brand pursued a more selective distribution strategy aligned with its repositioning.
Salvatore Ferragamo has reported revenues of €977 million (~$1.13 billion) in 2025, down 5.7 per cent YoY as currency pressures and weaker wholesale weighed on performance.
However, the DTC channel showed resilience, supporting improved results in H2 and Q4.
The brand is focusing on selective wholesale, leather goods, and digital engagement to drive recovery in 2026.
The gross profit declined 10.1 per cent to €665 million, with the gross margin narrowing to 68.1 per cent from 71.5 per cent a year earlier. The company said the decline was mainly due to negative currency impacts and the clearance of older collections.
Ferragamo reported gross operating profit (EBITDA) of €166 million, down 23 per cent from €215 million in 2024. The EBITDA margin contracted to 17 per cent, compared with 20.8 per cent the previous year, Salvatore Ferragamo said in a press release.
Adjusted operating profit (EBIT) reached €24 million, compared with €35 million in 2024. When impairment charges are included, operating profit turned negative at €21 million, although this represented an improvement from a loss of €49 million recorded in 2024.
At the bottom line, adjusted net profit stood at a loss of €3 million, compared with a €16 million profit in 2024. Including impairment charges, net loss narrowed to €49 million, compared with a loss of €68 million a year earlier.
Despite weaker profitability, the group maintained a solid balance sheet. Net financial position remained positive at €144 million at the end of December 2025, compared with €119 million at the end of June 2025.
In the second half (H2) of 2025, Ferragamo’s revenues reached €503 million, down 1.8 per cent YoY from €512 million in H2 2024, but only 0.4 per cent lower at constant exchange rates. The improvement was largely driven by the DTC channel, which grew 5.5 per cent at constant exchange rates compared with the same period in the previous year. Gross profit rose to €344 million, compared with €321 million in the first half of the year, with the gross margin improving to 68.5 per cent from 67.7 per cent in H1 2025.
EBITDA for H2 2025 totalled €93 million, up from €73 million in H1 2025. The EBITDA margin improved to 18.5 per cent, compared with 15.3 per cent in the first half.
The turnaround was particularly visible at the operating level. Adjusted EBIT reached €27 million in H2 2025, reversing a €3 million loss in H1 2025. Similarly, adjusted net profit returned to €13 million, compared with a €16 million loss in the first half.
Meanwhile, in the fourth quarter (Q4) of 2025, Ferragamo reported consolidated revenues of €282 million, representing a 3.2 per cent decline YoY at current exchange rates and 2 per cent at constant exchange rates.
The DTC channel continued to outperform, posting 6.3 per cent growth at constant exchange rates during the quarter and accelerating compared with the third quarter despite a tougher comparison base. The company said its online channel maintained strong momentum, supported by higher website traffic, order volumes, and average transaction values on its official site.
By contrast, the wholesale business remained under pressure, with net sales declining 30.6 per cent at constant exchange rates, reflecting Ferragamo’s strategy to reduce distribution and focus on key retail partners.
In Europe, Middle East, and Africa (EMEA), DTC sales rose at a mid-single-digit pace in the fourth quarter, supported by higher conversion rates and average transaction values, although wholesale weakness led to an overall sales decline.
North America recorded a modest increase in Q4 sales at constant exchange rates, driven by strong retail performance despite weaker wholesale. Central and South America delivered the strongest regional growth, with both DTC and wholesale sales increasing at mid-single-digit rates during the fourth quarter. In Asia Pacific, retail performance improved across Korea, China and Southeast Asia in the fourth quarter, although wholesale contraction continued to weigh on overall results.
The company is focusing particularly on its core leather categories, including footwear icons such as Vara and Tramezza, as well as expanding leather goods collections like the Hug and Soft bag lines. It is also investing in accessories and silk products to increase store traffic and cross-selling opportunities.
Ferragamo has simultaneously adopted a more selective wholesale strategy, prioritising key accounts, while enhancing its retail network, digital platforms, and data-driven customer engagement tools, including the use of artificial intelligence in marketing and client management.
Looking ahead to 2026, the group said it intends to build on the early signs of improvement in its DTC business while continuing to strengthen brand desirability and profitability amid ongoing geopolitical and macroeconomic uncertainty.
Fibre2Fashion News Desk (SG)
