Ferragamo shares surged on the stock market today following the release of its 2025 results (+8.7% in morning trading). After previewing its revenue figures at the end of January—down 5.7% to €977 million—the company approved its 2025 financial statements, highlighting a gradual recovery in profitability during the second half of the year.
A significant improvement in profitability in the second half of the year
Despite a volatile global environment and geopolitical tensions that impacted demand, the company saw an improvement in profitability in the second half of the year, driven by growth in its direct-to-consumer (DTC) channel, which rose by 5.5% at constant exchange rates compared to the same period in 2024.
EBITDA for the full year amounted to €166 million, with a margin of 17%, while EBITDA for the second half of the year alone rose to €93 million (18.5% margin), exceeding the €73 million recorded in the first half of the year. Net income remained negative at €49 million, representing an improvement over the €68 million loss recorded in fiscal year 2024. The (adjusted) net financial position as of December 31, 2025, remains solid and positive at €144 million, although it was impacted by investments of €46 million, primarily for the renewal of the distribution network.
“We view this as a positive development, as cost efficiency has been a priority for Ferragamo since it launched its strategic review last year,” noted Barclays analysts.
Strategic realignment and closure of 70 stores
Strategically, the group has stepped up its efforts to focus on the brand’s core business—namely, footwear and leather goods—and to optimize its retail network by prioritizing high-performing stores. In this regard, during the conference call, management announced that in 2026 and 2027, 70 stores deemed non-strategic will be closed, many of which are located in China.
During the same conference, management also highlighted encouraging trends in certain regions, particularly growth in the United States and South Korea. However, the situation remains challenging in other areas, such as China, where performance since the start of the year has remained negative, and in Europe, where the absence of tourists is offsetting otherwise encouraging local spending.
The succession to the top management position remains unresolved
The search for a new CEO remains ongoing following Marco Gobbetti’s departure. The company has stated that the search is continuing, but, as Barclays analysts point out, “the fact that the CEO recruitment process is still underway could heighten market concerns.”