Salvatore Ferragamo, the renowned Italian luxury group, saw a slight decline in sales during the first quarter of the year. The company experienced a 6.5% decrease in sales at constant exchange rates, primarily due to a slowdown in the US market. This deceleration resulted from the rationalization of the distribution network in North America, causing a significant 23.4% decrease in sales in the region. However, Ferragamo witnessed a positive trend in sales in China, which offered some relief.

The Covid-19 pandemic has heavily impacted Ferragamo, a family-owned company that was already in the process of revitalizing its historic brand. The company’s recent introduction of products designed by its new creative director, Maximilian Davis, did not yet make a significant contribution to sales performance.

Under the leadership of Chief Executive Marco Gobbetti, who joined the company last year from Burberry, Ferragamo has been focused on turning its fortunes around. Gobbetti has outlined plans to increase investments, revamp stores, and attract a younger customer base, with a target of doubling revenues to approximately 2.3 billion euros by 2026. Despite the challenges posed by the pandemic, Gobbetti remains confident in these plans and reiterates the company’s mid-term ambition.

Industry analysts highlight that the quarterly sales figures do not fully reflect the potential of Ferragamo’s new product offerings, as they are still heavily reliant on the old collection and the wholesale channel. The company is actively working to streamline these aspects of its operations. Maximilian Davis was appointed as creative director in March last year as part of Gobbetti’s strategy to revamp the brand.

Despite the obstacles faced by Ferragamo, the company remains committed to its growth plans and holds an optimistic outlook for the future. By making strategic investments and enhancing its brand image, Ferragamo aims to reclaim its position as a leading luxury fashion brand.

Useful links:
Ferragamo Appoints Maximilian Davis as Womenswear Design Director
Can Marco Gobbetti Turn Around Salvatore Ferragamo?