Salvatore Ferragamo (SFER) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 total revenues reached €221.1 million, down 2.6% year-over-year (down 1.0% at constant FX), reflecting a challenging macroeconomic environment and weak consumer sentiment in Asia Pacific.

• Focus remained on strengthening core leather goods and handbags, with new best sellers like the Soft and Hug bag lines, and continued emphasis on shoes for both women and men.

• DTC channel saw positive results in Europe, Japan, and Latin America, but was offset by declines in Asia Pacific; wholesale performed well across all regions.

• Enhanced customer experience through omnichannel strategies and new store concepts in Osaka, Seoul, and Nagoya.

• FW25 fashion show received top reviews, including best show in Milan and strong social media engagement.

Financial highlights

• Q1 2025 total net revenues were €221.1M, down 2.6% year-over-year (down 1.0% at constant FX).

• Net sales declined 0.9% year-over-year (down 1.2% at constant FX) to €217.6M.

• DTC revenues fell 3.6% (down 4.5% at constant FX) to €164M, while wholesale grew 7.9% (up 10.3% at constant FX) to €54M.

• Leather goods net sales increased 9.6% year-over-year, while footwear declined 9.6%.

• Hedging income turned negative at -€1.8M versus +€2.4M last year.

Outlook and guidance

• Management remains focused on adapting product offerings to customer preferences and maintaining operational flexibility amid ongoing macroeconomic uncertainty.

• Plans to further align product offerings with customer preferences and strengthen market position, leveraging brand heritage and creative capabilities.