Published by Global Banking & Finance Review®
Posted on March 6, 2025
2 min readLast updated: January 25, 2026
Add as preferred source on GoogleSalvatore Ferragamo's profit halved due to challenges in Asian markets and a CEO change. The company remains cautious about short-term expectations.
MILAN (Reuters) - Salvatore Ferragamo on Thursday reported that its adjusted operating profit had more than halved last year, as the Italian luxury leather goods group seeks a new boss to replace departing Chief Executive Marco Gobbetti.
The company cited a slowdown in Asian markets, with a particularly difficult environment in China, and a challenging global wholesale environment in its earnings statement.
"Considering the uncertainties over demand by luxury consumers, we remain cautious on short-term expectations," it said, indicating there would be no immediate turnaround.
As announced last month, the company said that its CEO Gobbetti had stepped down on Thursday after little over three years in charge, during which time the former Burberry chief failed to stem a slide in sales at the Florentine brand.
Chairman Leonardo Ferragamo told financial analysts that designer Maximilian Davis had his full support. Davis was hired as creative director in 2022 shortly after Gobbetti took charge of the company.
The chairman also said the family of late founder Salvatore Ferragamo remained committed to the company.
Adjusted earning before interest and taxes (EBIT) dropped to 35 million euros, better than a LSEG analysts consensus, after the company last year warned it expected EBIT of around 30 million euros. The comparable figure in 2023 was 79 million euros.
The group reported a net loss of 68 million euros in 2024 from a profit of 26 million euros a year earlier.
Ferragamo's revenues declined 4% at constant currencies in the fourth quarter. In January the group flagged "encouraging results" from its direct-to-consumer sales which were overall flat in the last three months of the year.
(Reporting by Elisa Anzolin; Editing by Keith Weir)
The company cited a slowdown in Asian markets, particularly in China, and a challenging global wholesale environment as reasons for the profit decline.
Ferragamo reported an adjusted EBIT of 35 million euros, which was better than analysts' consensus expectations of around 30 million euros.
CEO Gobbetti stepped down after just over three years in charge, during which he was unable to prevent the company's profit slide.
The company remains cautious on short-term expectations, indicating that there will be no immediate turnaround in its financial performance.
Ferragamo's revenues declined by 4% at constant currencies in the fourth quarter, although the company flagged 'encouraging results' from its direct-to-consumer sales.
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