Italian luxury fashion house Salvatore Ferragamo SpA has released its preliminary results for the full year 2025, reporting consolidated revenues of €977 million (~$1.17 billion), down 3.8 per cent year-over-year (YoY) at constant exchange rates and 5.7 per cent YoY at current exchange rates. 

The group saw sequential improvement in direct-to-consumer (DTC) performance despite ongoing pressure on the wholesale channel and a challenging macroeconomic backdrop. DTC channel recorded a 0.4 per cent increase in net sales at constant exchange rates, supported by positive performances in the US, Europe, and Central and South America. However, this was offset by weaker results in Asian markets. At current exchange rates, DTC revenues declined 3.1 per cent. 

Salvatore Ferragamo has reported consolidated revenues of €977 million (~$1.17 billion) in 2025, down YoY.
DTC sales rose modestly at constant exchange rates, supported by the US, Europe, and the Americas, while Asia lagged.
Q4 saw sequential DTC improvement across regions despite continued wholesale pressure amid a challenging macroeconomic environment.

The wholesale channel remained under pressure throughout the year, with net sales falling 17.1 per cent at constant exchange rates and 17.5 per cent at current exchange rates, consistent with the group’s strategy to streamline distribution and prioritise brand-aligned accounts, Salvatore Ferragamo said in a press release. 

Region-wise, full-year net sales declined 6.5 per cent at constant exchange rates in Europe, Middle East and Africa (EMEA), while North America recorded growth of 3.1 per cent at constant exchange rates. Central and South America posted a 7.9 per cent increase at constant exchange rates, driven by double-digit DTC growth, partly offset by weaker wholesale performance. Asia Pacific net sales fell 11.5 per cent at constant exchange rates, largely due to wholesale weakness, while Japan recorded a 3.0 per cent decline at constant exchange rates.

By product category, footwear net sales declined 8.1 per cent at constant exchange rates in FY 2025, while leather goods were broadly stable with a 0.6 per cent decline. Apparel recorded marginal growth of 0.2 per cent, while silk and other products grew 3.2 per cent at constant exchange rates.

In the fourth quarter (Q4) of 2025, the group reported preliminary consolidated revenues of €282 million (~$338.4 million), down 2 per cent at constant exchange rates and 3.2 per cent at current exchange rates compared to Q4 2024.

The DTC channel delivered a strong performance during the quarter, with net sales rising 6.3 per cent at constant exchange rates and 0.6 per cent at current exchange rates. Growth accelerated sequentially compared to Q3 2025, despite a tougher comparison base, with all regions posting positive trends. Performance was supported by higher conversion rates, increased average ticket size, improved cross-selling and continued solid growth in online sales, driven by higher traffic, order volumes and order values on its official site.

In contrast, the wholesale channel recorded a sharp decline in Q4, with net sales down 30.6 per cent at constant exchange rates and 23.5 per cent at current exchange rates YoY, reflecting the group’s continued focus on controlled distribution and key accounts aligned with its brand positioning.

Regionally, EMEA total net sales declined 10.9 per cent at constant exchange rates, despite mid-single-digit growth in the DTC channel. North America posted a 2 per cent increase in total net sales at constant exchange rates, supported by high-single-digit DTC growth. Central and South America recorded a 5.1 per cent rise at constant exchange rates, while Asia Pacific saw total net sales decline 2.3 per cent at constant exchange rates despite positive DTC performance in Korea, China and Southeast Asia. Japan registered a 2.8 per cent increase in total net sales at constant exchange rates during the quarter.

Since Q2 2025, the group has implemented a revised action plan focused on strengthening alignment across design, product development, communication and distribution. Key initiatives included reinforcing core footwear icons such as the Vara and Tramezza lines, enhancing leather goods offerings with the Hug line and new best-sellers, and updating brand communication to emphasise craftsmanship and heritage through digital-first and omnichannel campaigns, added the release.

Looking ahead, Salvatore Ferragamo said that while geopolitical and macroeconomic uncertainty persists and wholesale conditions are expected to remain challenging, its focus in 2026 will be on sustaining DTC momentum, fully deploying its revised positioning and reassessing its retail distribution network to support brand desirability, topline growth and profitability.

Fibre2Fashion News Desk (SG)

Japan’s manufacturing sector recorded its strongest improvement in nearly three-and-a-half years in January 2026, with the S&P Global Manufacturing PMI rising to 51.5 from 50 in December. The expansion marked the first improvement in operating conditions since June 2025 and the strongest PMI reading since August 2022, signalling a clear return to growth momentum.

The rebound was driven by a return to growth in new orders, which expanded for the first time since May 2023 and at the fastest pace in nearly four years. Firms cited stronger customer demand and new product launches as key drivers of improved sales. New export orders also increased for the first time since February 2022, supported by firmer demand from major markets such as the United States and Taiwan, S&P Global said in a press release.

Japan’s manufacturing sector returned to growth in January 2026, with the S&P Global PMI rising to 51.5, its strongest reading since August 2022.
New orders and exports expanded for the first time in years, lifting output, employment and purchasing activity.
However, rising input costs and selling prices signalled intensifying inflationary pressures despite improving demand conditions.

Improved demand conditions translated into higher factory output, with production rising for the first time since June 2025. Although the pace of expansion remained modest, it was the strongest since April 2022 and exceeded the long-run average.

Rising workloads also placed fresh pressure on capacity. Backlogs of work increased for the first time in three-and-a-half years, prompting manufacturers to step up hiring. Employment rose at the fastest rate since September 2022, as companies sought to rebuild capacity and prepare for further increases in output.

Purchasing activity also picked up, reflecting more positive expectations for the year ahead. Business conditions improved across all three monitored manufacturing sub-sectors, led by investment goods producers.

However, the survey highlighted growing inflationary pressures. Input costs rose at the quickest pace in nearly a year, partly reflecting the recent weakening of the yen, while selling price inflation climbed to a 19-month high, as firms passed higher costs on to customers.

“Japan’s manufacturing industry propelled itself back into growth territory at the start of 2026, with firms signalling the strongest upturns in output and new orders for nearly four years. Furthermore, new export business expanded for the first time since the start of 2022, to suggest a broad-based improvement in demand conditions,” said Annabel Fiddes, economics associate director at S&P. “More positive news was seen for employment, which rose to the greatest extent since September 2022, as firms sought to build capacity. Combined with a fresh rise in purchasing activity and upbeat expectations for the year ahead, the data suggest the sector is gearing up for further increases in output in the months ahead.”

“However, inflation remained a key area of concern for businesses. Input costs rose at the quickest pace in nearly a year, partly due to the recent weakening of the yen, leading to a sharper rise in selling prices. It will be important to monitor the prices data to see if these inflationary pressures intensify, as this could impact customer demand and firms’ own investment decisions,” added Fiddes.

Fibre2Fashion News Desk (SG)

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