The group saw sequential improvement in direct-to-consumer (DTC) performance despite continued pressure on the wholesale channel and a challenging macroeconomic backdrop. The DTC channel posted a 0.4 percent increase in net sales at constant currency rates, supported by positive performances in the US, Europe and Central and South America. However, this was offset by weaker results in Asian markets. At the current exchange rate, DTC revenue decreased 3.1 percent.
Salvatore Ferragamo reported consolidated revenue of €977 million (~$1.17 billion) in 2025, down year-on-year. DTC sales rose modestly at constant exchange rates, supported by the United States, Europe and the Americas, while Asia lagged. The fourth quarter saw sequential DTC improvement across all regions despite continued wholesale pressure amid a challenging macroeconomic environment.
The wholesale channel remained under pressure throughout the year, with net sales falling 17.1 percent at constant exchange rates and 17.5 percent at current exchange rates, in line with the group's strategy to rationalize distribution and prioritize accounts aligned with the brand, Salvatore Ferragamo said in a press release.
Regionally, full-year net sales decreased 6.5 percent at constant exchange rates in Europe, the Middle East and Africa (EMEA), while North America posted growth of 3.1 percent at constant exchange rates. Central and South America posted a 7.9 percent increase at constant exchange rates, driven by double-digit DTC growth, partly offset by weaker wholesale performance. Asia Pacific net sales fell 11.5 percent at constant exchange rates, largely due to wholesale weakness, while Japan posted a 3.0 percent decline at constant exchange rates.
By product category, net sales of footwear decreased 8.1 percent at constant exchange rates in fiscal 2025, while leather goods remained broadly stable with a 0.6 percent decline. Garments recorded a marginal growth of 0.2 percent, while silk and other products grew 3.2 percent at constant exchange rates.
In the fourth quarter (Q4) of 2025, the group reported preliminary consolidated revenues of €282 million (~$338.4 million), down 2 percent at constant exchange rates and down 3.2 percent at current exchange rates compared to Q4 2024.
The DTC channel delivered strong performance during the quarter, with net sales increasing 6.3 percent at constant exchange rates and 0.6 percent at current exchange rates. Growth accelerated sequentially compared to the third quarter of 2025, despite a tighter comparison base, with all regions recording positive trends. The performance was supported by higher conversion rates, higher average ticket size, better cross-selling and continued strong growth in online sales, driven by higher traffic, volumes and order values on its official site.
In contrast, the wholesale channel recorded a sharp decline in the fourth quarter, with net sales falling 30.6 percent at constant exchange rates and 23.5 percent at current exchange rates year-on-year, reflecting the group's continued focus on controlled distribution and key accounts aligned with its brand positioning.
Regionally, total net sales in EMEA decreased 10.9 percent at constant currency rates, despite mid-single-digit growth in the DTC channel. North America posted a 2 percent increase in total net sales at constant exchange rates, supported by single-digit DTC growth. Central and South America saw an increase of 5.1 percent at constant exchange rates, while Asia Pacific saw total net sales decline by 2.3 percent at constant exchange rates despite positive DTC performance in Korea, China and Southeast Asia. Japan posted a 2.8 percent increase in total net sales at constant exchange rates during the quarter.
Since the second quarter of 2025, the group has implemented a revised action plan focused on strengthening alignment in design, product development, communication and distribution. Key initiatives included reinforcing core footwear icons such as the Vara and Tramezza lines, enhancing the leather goods offering with the Hug line and new bestsellers, and updating brand communication to emphasize craftsmanship and heritage through digital and omnichannel campaigns, the statement added.
Looking ahead, Salvatore Ferragamo said that while geopolitical and macroeconomic uncertainty persists and wholesale conditions are expected to remain challenging, its focus in 2026 will be on maintaining DTC momentum, fully implementing its revised positioning and reassessing its retail distribution network to support brand desirability, revenue growth and profitability.
Fiber2Fashion News Desk (SG)
