Reflecting on a challenging yet productive year for the company, Marco Gobbetti, CEO, Salvatore Ferragamo, says, the company managed to enhance its brand, products and network despite encountering a softening luxury market and delayed assumptions

In 2023, Ferragamo saw a 7.6 per cent decline in revenues to €1.15 billion, with net profit plummeting nearly 60 per cent to €26 million. Despite these setbacks, Gobbetti remains committed to the company's growth trajectory, emphasising investments in storytelling, digital touchpoints, and store concepts.

Notably, Ferragamo unveiled a revamped store concept in Milan, receiving positive feedback and boosting sales. Maximilian Davis, Creative Director, also garnered acclaim for his contributions to the brand's visibility and engagement.

The company’s retail sales dipped by 10.8 per cent, while the wholesale channel experienced a 12.2 per cent decrease, attributed to reduced international travel and market softening. Despite challenges, Ferragamo closed non-performing stores and refreshed its online platform.

Earnings before interest, taxes, depreciation, and amortization fell by 15.8 per cent, reflecting increased investments in marketing and communication. Gobbetti reiterated his strategic focus on customer renewal, product innovation, and Davis' contemporary designs.

Regarding regional performance, Asia-Pacific sales decreased by 13.1 per cent, while Europe, Middle East, and Africa saw a modest increase of 3.4 per cent. North America experienced a significant 19.3 per cent decline in sales.

Despite maintaining a positive net financial position, Ferragamo's net debt increased to €486.6 million, mainly due to acquisitions in Greater China.

Looking ahead, Ferragamo plans to open 20 new stores, capitalise on digital channels, and maintain profitability through sales quality and cost discipline.