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
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)
