The net loss of the company in H1 was 57 million euros (~ $ 66.12 million), an acute reversal of a gain of 6 million euros in H1 2024. The loss includes a charge for deterioration of 41 million euros mainly linked to the assets in China and Korea. Excluding this, the net loss adjusted was € 16 million, said Salvatore Ferragamo in a press release.
The wholesale segment was the main drag, with the H1 revenues that fell 17.9 percent to € 105 million, while direct sales to the consumer (DTC) decreased by 6.5 percent to € 357 million.
Salvatore Ferragamo has reported income of € 474 million (~ $ 549.84 million) in H1 2025, 9.4 % lower, with a net loss of € 57 million (~ $ 66.12 million) due to the weak demand of Asia of the Pacific. Wholesale sales fell by 17.9 percent, DTC fell by 6.5 percent and Ebitda decreased 38.1 percent. The revenues of the second quarter yielded 14.6 percent, although Latin America showed growth. Strategic repositioning efforts are underway.
The gross gain fell 15 percent to € 321 million, with a reduced margin to 67.7 percent of 72.1 percent. The company's Ebitda fell 38.1 percent to € 73 million, while the adjusted EBIT became negative at 3 million euros compared to a gain of € 28 million in H1 2024.
In terms of regional performance, Asia Pacific sales collapsed from 16.3 percent to constant exchange rates, while Europe and Japan also saw decreases. Latin America was the only brilliant point, 11.6 percent more in a constant currency. Footwear sales, the largest segment in Ferragamo, fell 13.3 percent.
As for the category, footwear remained the leading category with € 201.8 million in sales, which represents 43.6 percent of total net sales. This marked a decrease of 13.3 percent year -on -year to constant exchange rates. Leather items followed € 199.1 million closely (43.1 percent of net sales), only 0.2 percent year -on -year at constant change rates.
Meanwhile, the clothing sector generated € 27.2 million (5.9 percent of sales), reflecting a yoy drop of 8.6 percent to constant exchange rates. Silk and other products brought 34.3 million euros (7.4 percent of net sales), 6.1 percent less at constant exchange rates.
In the second quarter (Q2) of 2025, its income totaled € 253 million (~ $ 293.48 million), 14.6 % lower to current exchange rates and 11.8 percent at constant rates, mainly impacted by a deteriorated wholesale channel that fell 34.3 percent. DTC revenues in Q2 decreased 5.4 percent to constant exchange rates.
The company cited a consumption environment that worsens in Asia Pacific and Japan, exceeded by a small tourist expense and a high base in the second quarter of 2024, as key factors. Whoever wholesale crossed the regions, with Europe, the Middle East and Africa (EMEA) when seeing a 19.5 percent decrease in net sales and Japan publishing a fall of 12.6 percent. Only Latin America showed resilience, with the net sales of the second quarter that grew by 11.2 percent at constant exchange rates, driven by a strong impulse of DTC.
Ferragamo reaffirmed his focus on strategic repositioning, including a renewed product strategy, a more clear communication narrative and greater efficiency in marketing spending. Online sales of their official website saw a two -digit growth in H1, and the brand is advancing in the renewal plans of its store and inventory control to align with the evolutionary conditions of the market, added the launch.
Fiber2Fashion News Desk (SG)
