Finance
Ferragamo shares jump on stronger-than-expected operating profit
Published by Global Banking & Finance Review®
Posted on March 12, 2026
2 min readLast updated: March 12, 2026
Quick Summary
Ferragamo shares rose ~8% on March 12, 2026, after its 2025 adjusted EBIT of €24.3 m beat expectations, despite a 30% year‑on‑year drop. Optimisation of its store network—including 70 closures and new openings—is underway amid uneven regional sales trends.
Ferragamo Shares Jump as 2025 Operating Profit Beats Market Expectations
Ferragamo’s Financial Performance and Strategic Initiatives
2025 Operating Profit Surpasses Estimates
MILAN, March 12 (Reuters) - Shares in Salvatore Ferragamo jumped over 8% in morning trade on Thursday, a day after the Italian luxury leather goods group reported a 2025 operating profit that beat market expectations.
Ferragamo said adjusted earnings before interest and taxes (EBIT) fell 30% last year, to 24.3 million euros ($28.08 million), but the figure was better than what analysts were expecting.
Shares were up 8.2% as of around 0950 GMT.
Turnaround Plan and Store Network Optimization
Store Closures and Openings
The Florence-based company, which is pursuing a turnaround plan, said it would continue to optimise its distribution network. It plans to close around 70 lower-performing stores in 2025-2026, mainly in China, but also open new ones in more attractive cities, with an overall reduction of around 30.
Regional Sales Performance
Sales in the first months of 2026 recorded double-digit growth in the United States, while Europe remained broadly flat and China was still negative, executive board member Ernesto Greco said in a post-results call with analysts on Wednesday.
Leadership and Advisory Committee
Greco is member of the advisory committee that is supporting the company's chairman pending the arrival of a new CEO, after Marco Gobbetti left last year.
Wholesale Channel and Market Pressures
Greco added that the wholesale channel could remain under pressure due to the group's more selective approach and the temporary suspension of shipments to U.S. department store Saks earlier in the year, which have now resumed.
Impact of Geopolitical Tensions
Amid tensions due to the ongoing Iran war, Ferragamo said the Middle East accounted for less than 2% of its revenues, meaning it did not expect a direct impact. Management cautioned, however, that the luxury sector as a whole could feel the effects if the conflict dragged on.
($1 = 0.8653 euros)
(Reporting by Elisa Anzolin, editing by Alvise Armellini)
Key Takeaways
- •Adjusted 2025 EBIT of €24.3 m outperformed analyst forecasts despite being 30% lower YoY
- •Shares jumped ~8.2% in early trading on that news
- •Turnaround plan includes closing ~70 underperforming stores and opening new ones, reducing net store count by ~30
- •Sales trends in early 2026: double‑digit growth in the U.S., flat in Europe, continued weakness in China
- •Wholesale faces pressure due to selective strategy and recent temporary halts in shipments (e.g., to Saks)
Frequently Asked Questions about Ferragamo shares jump on stronger-than-expected operating profit
1Why did Ferragamo shares rise in morning trade?
Ferragamo shares rose over 8% after the company reported a 2025 operating profit that surpassed market expectations.
2How did Ferragamo's adjusted EBIT perform last year?
Adjusted EBIT fell 30% to 24.3 million euros, but this result was better than analysts had forecast.
3What store strategy is Ferragamo planning?
Ferragamo plans to close about 70 low-performing stores mainly in China, and open new stores in more attractive locations, resulting in a net reduction of around 30 stores.
4How did sales perform in different regions?
Sales showed double-digit growth in the United States, remained flat in Europe, and were negative in China during the first months of 2026.
5Is the Middle East conflict affecting Ferragamo's revenues?
Ferragamo stated that the Middle East accounts for less than 2% of its revenues, so a direct impact is not expected.
