Ferragamo fails to meet its targets

The two most important markets for the Italian brand Ferragamo disappointed expectations in 2023. The slowdown in sales in Asia and the United States contributed to a fall in net profit for the year to €26.2 million, down 59.9% on the previous year.

Sales in Asia amounted to 362.9 million euros, down 13.1% in 2023, despite slight optimism in the last quarter of the year, when sales rose +2.2 %. The same result applies to North America, with overall sales down 19.3%. 

Despite growing interest in the brand, Central and South America fared no better, with sales down 7.2%.

Over and above the fragility of the luxury goods market due to the current delicate geopolitical context and inflation, which has hit the US market particularly hard, CEO Marco Gobbetti (ex-Moschino, ex-LVMH) has warned that achieving Ferragamo's turnaround targets may take longer than expected. He remains optimistic about the brand's future, however, and is still forecasting a rise in sales over the medium term, focusing mainly on the new clientele of Millennials and Generation Z. However, the forecasts of several financial analysts were lower than the actual results: Factset, for example, was expecting profits of just €24.4 million.

On the European and Middle Eastern markets, Ferragamo's sales remained strong, with a 3.4% rise in turnover to a total of 270.6 million euros.

On a positive and promising note, the latest Ferragamo show, held at Milan Fashion Week in February, received a positive response. Creative director Maximilian Davis, who takes up his post in March 2022, showcased designs inspired by the 1920s, accompanied by original, androgynously styled accessories. A few days earlier, the brand presented its new advertising campaign, shot by photographer Vanina Sorrenti and embodied by Russian supermodel Natalia Vodianova.