Salvatore Ferragamo (SFER) H1 2025 earnings summary

Executive summary

• H1 2025 saw a challenging consumer environment, especially in Asia Pacific, and a negative wholesale scenario, prompting a comprehensive review of brand positioning and business priorities.

• Revenues for H1 2025 were €474 million, down 9.4% year-over-year, mainly due to weak wholesale and Asia Pacific demand.

• Tangible changes in product, communication, and distribution are underway, with a focus on core leather goods and shoes, aiming for a more efficient collection structure and optimized pricing.

• Marketing spend efficiency improved through targeted campaigns and digital content, with double-digit growth in online sales and increased new client acquisition.

• Operational flexibility and cost optimization are prioritized to align with current business needs while supporting future growth.

Financial highlights

• H1 2025 total net revenues at €474M, down 9% year-over-year at constant FX, mainly due to weak consumer demand and wholesale challenges.

• Gross profit declined 15% to €321M, with gross margin at 67.7% versus 72.1% in H1 2024, impacted by FX and higher inventory obsolescence provisions.

• EBIT negative at €44M (including €41M impairment), versus €28M positive in H1 2024; adjusted EBIT negative €3M.

• Net income negative €57M (including impairment); adjusted net loss €16M.

• EBITDA at €73M, down 38% year-over-year, representing 15.3% of revenues.

Segment performance

• Direct-to-consumer (DTC) revenues down 6.5% at constant FX, with positive trends in Europe and Latin America offset by declines in Asia Pacific and Japan.

• Wholesale revenues down 17.9% to €105M, with Q2 particularly weak (down 34.3%).

• Asia Pacific net sales down 18.5%, EMEA down 7.8%, North America down 3.9%, Japan down 3.5%, while Latin America grew 11.6% at constant FX.

• Shoes segment down 15.5%, leather goods and handbags down 2.2%, silk and accessories down 7.7%, ready-to-wear down 10.5%.