Overview
- The group swung to a H1 net profit of €1.5 million and an operating profit of €20.9 million while Q2 revenues reached €259 million, up 4.6% at constant exchange rates.
- Direct-to-consumer sales rose and helped lift results, with Ferragamo.com and mono-brand stores reporting the strongest online and retail gains for the quarter.
- Wholesale sales declined sharply, falling about 11.6% on a reported basis for the half, prompting the company to recalibrate account distribution and full-price selling strategies.
- Regional performance diverged as North America posted double-digit growth while Europe and parts of Asia underperformed, with Japan hit by weaker tourist flows.
- Management remains transitional with executive chairman Leonardo Ferragamo in charge and Fabrizio Freda advising, and analysts say a roughly 17% fall in operating costs drove the profit swing even as July U.S. sales reported softness that left the recovery tentative.