The company’s net loss in H1 was €57 million (~$66.12 million), a sharp reversal from a €6 million profit in H1 2024. The loss includes a €41 million impairment charge linked primarily to assets in China and Korea. Excluding this, the adjusted net loss was €16 million, Salvatore Ferragamo said in a press release.
The wholesale segment was the main drag, with H1 revenues dropping 17.9 per cent to €105 million, while direct-to-consumer (DTC) sales declined 6.5 per cent to €357 million.
Salvatore Ferragamo has reported revenue of €474 million (~$549.84 million) in H1 2025, down 9.4 per cent YoY, with a net loss of €57 million (~$66.12 million) due to weak Asia Pacific demand.
Wholesale sales dropped 17.9 per cent, DTC fell 6.5 per cent, and EBITDA declined 38.1 per cent.
Q2 revenue plunged 14.6 per cent, though Latin America showed growth.
Strategic repositioning efforts are underway.
The gross profit fell 15 per cent to €321 million, with margin narrowing to 67.7 per cent from 72.1 per cent. The EBITDA of the company dropped 38.1 per cent to €73 million, while adjusted EBIT turned negative at €3 million versus a €28 million gain in H1 2024.
In terms of regional performance, Asia Pacific sales plummeted 16.3 per cent at constant exchange rates, while Europe and Japan also saw declines. Latin America was the only bright spot, up 11.6 per cent on a constant currency basis. Footwear sales, Ferragamo’s largest segment, dropped 13.3 per cent.
Category-wise, footwear remained the leading category with €201.8 million in sales, accounting for 43.6 per cent of total net sales. This marked a 13.3 per cent YoY decline at constant exchange rates. Leather goods followed closely at €199.1 million (43.1 per cent of net sales), down just 0.2 per cent YoY at constant exchange rates.
Meanwhile, apparel sector generated €27.2 million (5.9 per cent of sales), reflecting an 8.6 per cent YoY drop at constant exchange rates. Silk and other products brought in €34.3 million (7.4 per cent of net sales), down 6.1 per cent at constant exchange rates.
In the second quarter (Q2) of 2025, its revenues totalled €253 million (~$293.48 million), down 14.6 per cent YoY at current exchange rates and 11.8 per cent at constant rates, primarily impacted by a deteriorating wholesale channel which fell 34.3 per cent. DTC revenues in Q2 declined 5.4 per cent at constant exchange rates.
The company cited a worsening consumer environment in Asia Pacific and Japan—exacerbated by reduced tourist spending and a high base in Q2 2024—as key factors. Wholesale weakness cut across regions, with Europe, the Middle East, and Africa (EMEA) seeing a 19.5 per cent decline in net sales and Japan posting a 12.6 per cent drop. Only Latin America showed resilience, with Q2 net sales growing 11.2 per cent at constant exchange rates, driven by strong DTC momentum.
Ferragamo reaffirmed its focus on strategic repositioning, including a refreshed product strategy, a sharper communication narrative, and greater efficiency in marketing spend. Online sales from its official website saw a double-digit growth in H1, and the brand is advancing its store renovation plans and inventory control to align with evolving market conditions, added the release.
Fibre2Fashion News Desk (SG)