Companies

Ferragamo CEO Marco Gobbetti leaves amid slowing sales

Feb 5, 2025 Italy

The Italy-based luxury group has announced the departure of CEO Marco Gobbetti, shortly after reporting lower preliminary sales for the fourth quarter and full year 2024

“I would like to thank Marco Gobbetti, who in recent years has set up and developed a significant brand renewal and evolution activity, as well as significant product innovation and brand positioning, while also carrying out important work on the organizational evolution of the Company and the Group, which is the basis for continuing the renewal strategy”, said Company Chairman Leonardo Ferragamo.

According to a statement from the company, Marco Gobbetti will leave his position on the 6^th of March by mutual agreement after just over three years at the helm of Ferragamo. The news comes shortly after the announcement of preliminary fourth quarter and full year results marked by slower sales, especially in the Asia-Pacific region.

Ferragamo reported a consolidated revenue of 1.04 billion euros in the year 2024, down by 8.2% at constant exchange rates and 10% at current exchange rates, as compared to the previous year. In the fourth quarter alone, consolidated revenue amounted to 291 million euros, reflecting a year-over-year decline of 4.0% at constant exchange rates and 6.7% at current exchange rates. However, “encouraging trends in the DTC channel” have contributed to an improvement on the previous quarter.

In the fourth quarter, net sales from the DTC channel increased by 0.9% at constant exchange rates and declined by 0.1% at current exchange rates, as compared to the same period of 2023, “with positive performances in Europe, the US, Japan and Latin America, offsetting the persistent weakness in the Asia Pacific area”. On the contrary, fourth quarter net sales from the wholesale channel decreased year-over-year by 19.3% at constant exchange rates and 21.9% at current exchange rates, due to a weak demand in the Asian markets and in the Travel Retail channel.

Overall, in 2024, Ferragamo’s DTC net sales decreased by 3.8% at constant exchange rates and 5.8% at current exchange rates, and wholesale net sales decreased by 21.3% at constant exchange rates and 21.2% at current exchange rates, on a comparable basis to the prior year.

As the Asia-Pacific region remains the company’s weak spot, Ferragamo has begun the search for a new chief executive. Chairman Leonardo Ferragamo, with the help of an advisory committee, will assume executive powers once Gobbetti leaves and until his successor is found.

Image Credits: ferragamo.com

Italy Ferragamo Luxury Quarter Results Results Year Results