Ferragamo, the renowned Italian luxury goods group, faced a significant setback in 2023, with a staggering 8.1% drop in sales. As a result, CEO Marco Gobbetti expressed concerns that the company’s turnaround objectives may take longer to accomplish than initially anticipated. Despite this disappointing outcome, revenues for the year managed to reach 1.16 billion euros, slightly surpassing the estimated figure of 1.15 billion euros according to an LSEG consensus.

The most substantial decline in sales was observed in the North American region, where revenues plummeted by a troubling 17%. However, there was a glimmer of hope, as this decline was partially offset by a modest 3.4% increase in revenues in Europe, the Middle East, and Africa. In the Asia Pacific area, there was an unfortunate 8.3% decrease in revenue at consistent exchange rates. Remarkably, the Asia Pacific region contributed to nearly one third of the group’s total revenues, followed closely by North America and Europe, with each region contributing around a quarter of the total.

Despite facing challenging market conditions and a noticeable slowdown in luxury demand, Gobbetti remained steadfast in his commitment towards the company’s ambitious goals. When Gobbetti first joined Ferragamo two years ago, after his successful stint at Burberry, he vowed to orchestrate a swift turnaround. His aim was to achieve an impressive sales target of approximately 2.3 billion euros by 2026. Although the recent sales drop creates uncertainties, Gobbetti remained resolute in his determination to steer Ferragamo back on track.