Ferragamo's Q4 revenues decline, weakness in Asia-Pacific persists

Salvatore Ferragamo, the Italian luxury group, reported fourth-quarter revenues of 291 million euros, a decline of 4 percent. Positive performances in Europe, the U.S., Japan, and Latin America partially offset continued weakness in the Asia-Pacific region.

Sales in the Asia-Pacific market dropped by 24.8 percent, with both direct-to-consumer (DTC) and wholesale channels underperforming.

For the full year 2024, the group generated revenues of 1.035 billion euros, down 8.2 percent — in line with analysts’ expectations, according to LESG data. Full-year net sales in Asia-Pacific fell by 18.9 percent.

Commenting on the trading update, Marco Gobbetti, Ferragamo's CEO said: “The trend of DTC in Asia Pacific, albeit showing a modest improvement versus the previous quarter, remained weak, as did wholesale and travel retail, also negatively impacted by different timing in deliveries."

In contrast, Ferragamo's other core markets performed well in the fourth quarter: EMEA grew by 4.5 percent, North America rose 6.3 percent, Central and South America increased 10.7 percent, and Japan saw a modest 1.2 percent gain.

Ferragamo credited the double-digit growth in its DTC channel to strong demand for shoes, leather goods, and handbags.

While, the company reported a positive start to 2025, driven by an increase in direct-to-consumer sales. However, Morgan Stanley analysts, cited by Investing.com, noted that despite favourable reception to new collections, there is no clear sign of significant brand momentum.