Fashion
Italy’s Salvatore Ferragamo’s 2025 sales decline despite DTC growth
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)