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 in late January—down 5.7% to 977 million euros—the company approved its 2025 financial statements, highlighting a gradual recovery in profitability during the second half of the year.
Significant Improvement in Profitability in the Second Half
Despite a volatile global environment and geopolitical tensions that affected demand, the company recorded improved profitability in the second half of the year thanks to growth in its direct-to-consumer (DTC) channel, which rose 5.5% at constant exchange rates compared to the same period in 2024.
EBITDA for the full year totaled 166 million euros, with a margin of 17%, while second-half EBITDA alone rose to 93 million euros (18.5% margin), exceeding the 73 million recorded in the first half of the year. Net income remained negative at 49 million euros, representing an improvement over the 68-million-euro loss for fiscal year 2024. The (adjusted) net financial position as of December 31, 2025, remains solid and positive at 144 million euros, although it was impacted by investments of 46 million euros, primarily for the renewal of the distribution network.
“We view this as a positive, as cost efficiency has been a priority for Ferragamo since the launch of its strategic review last year,” noted analysts at Barclays.
Strategic Refocus and Closure of 70 Stores
Strategically, the group has intensified its efforts to enhance the brand’s core business—namely, footwear and leather goods—as well as to optimize its retail network by focusing on high-productivity 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, notably 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.
CEO Succession Still Unresolved
The search for a new CEO remains open following Marco Gobbetti’s departure. The company has indicated that the search is ongoing, but, as Barclays analysts point out, “the fact that the CEO recruitment process is still underway could heighten market concerns.”