Salvatore Ferragamo closes FY 2024 with revenues down 10.5%

The market context, characterized by a particularly difficult first part of the year, had a negative impact on the financial results of the entire year, both in terms of revenues and profitability of Salvatore Ferragamo spa. Revenues at 1,035 million euros (-10.5% compared to 1,156 million euros in the 2023 financial year, 8.2% at constant exchange rates) for the Florentine company in 2024.

The slowdown in Asian markets, particularly in China, has made the scenario challenging

The gross margin is equal to 740 million euros (-11.8% compared to 839 million euros at 31 December 2023) with an incidence on revenues equal to 71.5% (-110 basis points compared to 72.6% at 31 December 2023), the Ebitda at 215 million euros (-14.5% compared to 252 million euros in the 2023 financial year).

The Board of Directors of Salvatore Ferragamo SpA, meeting today under the chairmanship of Leonardo Ferragamo, examined and approved the 2024 financial statements and the consolidated financial statements as of December 31, 2024.

2024 has presented complex challenges, with a market influenced by ongoing geopolitical tensions and macroeconomic uncertainties, which have affected the demand for luxury goods, management underlined. “The slowdown in Asian markets, particularly in China, and an unfavorable global context for the wholesale business, have made the scenario even more challenging,” it said in a note.

“We have continued to enrich our product offering, developing marketing actions to strengthen the brand’s potential and to increase customer desirability and engagement, through an exclusive experience both in-store and online, while maintaining constant operational discipline,” the press release continues.

In the fourth quarter of 2024, consolidated revenues amounted to 291 million euros, down 4.0% at constant exchange rates and down 6.7% at current exchange rates, compared to the fourth quarter of 2023.

Net profit for the period, including third-party interests, was negative for 68 million euros compared to the positive 26 million euros recorded in the 2023 financial year.

As of December 31, 2024, the Group recorded a positive adjusted net financial position of 173 million euros (compared to 224 million euros as of December 31, 2023).

Results by geographical area

Sales in the EMEA region in fiscal 2024 decreased by 7.8% at constant exchange rates1 (-8.9% at current exchange rates), compared to the same period in 2023. In fiscal 2024, the North America region recorded a decrease in net sales of 2.6% at both constant exchange rates and at current exchange rates compared to fiscal 2023.

In fiscal 2024, the Central and South America region recorded an increase in net sales of 1% at constant exchange rates1 (-3% at current exchange rates) compared to fiscal 2023.

Asia Pacific recorded a decrease in net sales of 18.9% at constant exchange rates (-19.7% at current exchange rates).

In fiscal 2024, net sales in Japan increased by 3.2% at constant exchange rates (-4.3% at current exchange rates), compared to fiscal 2023.

Predictions for 2025

Uncertainties about the demand for luxury goods lead the company to maintain a cautious approach on short-term expectations. “We will continue to strengthen our product offering, enhancing our heritage and optimizing, at the same time, the targeting of customer segments. We are confident in our ability to address the dynamics of the constantly evolving market, maintaining revenue performance and profitability as priorities”, the management specified in the note.