Italian luxury group Salvatore Ferragamo recorded a 31.4% increase in sales in 2021, a result that aligns with market expectations. Despite this positive development, the company’s sales figures remain considerably below pre-pandemic levels. It reported revenue of 1.136 billion euros ($1.27 billion) for the year, in line with a Refinitiv consensus of 1.135 billion euros.

In the last quarter of 2021, Ferragamo experienced a 23.5% growth in sales at constant exchange rates, primarily driven by a strong performance in the United States and a surge in online revenues. This growth is certainly a relief for the brand, considering the challenges it faced during the pandemic crisis. As with other luxury brands, Ferragamo has been working diligently to recover from the impact of COVID-19 and regain its former success.

The appointment of new Chief Executive Marco Gobbetti further adds to the brand’s efforts to bounce back. Gobbetti, who joined Ferragamo in January 2022 after a successful tenure as CEO of Burberry, steps into his role at a crucial juncture for the luxury industry as it gradually recovers from the pandemic’s blow.

Prior to the health crisis in 2019, Ferragamo achieved sales of 1.377 billion euros. However, with lockdown measures and a decrease in tourism, its revenue dropped significantly by 20% in 2020. The brand heavily relies on travel spending, making it more susceptible to the disruptions caused by the pandemic.

Gobbetti’s primary focus will be to expedite the company’s turnaround efforts and rejuvenate the brand. Adding to his immediate to-do list is the appointment of a new fashion director following the departure of British designer Paul Andrew in April 2021. The selection of a talented and creative fashion director will play a vital role in maintaining Ferragamo’s reputation and attracting customers.

While numerous luxury brands have surpassed their pre-pandemic levels, Ferragamo faces the challenge of catching up and reclaiming its market share in an intensely competitive landscape. Guided by Gobbetti’s expertise and leadership, the company aims to navigate through these challenging times and restore its position as one of the leading luxury brands on a global scale.

Useful links:
Salvatore Ferragamo Official Website
Business of Fashion: Salvatore Ferragamo Tasks Marco Gobbetti with Turnaround