“The results of the third quarter have been impacted by the challenging macroeconomic and consumer environment and we expect this trend to continue in the last part of the year. The current context adds pressure on our top-line and profitability, therefore delaying the timing of the delivery of our financial objectives”, commented Marco Gobbetti, Ferragamo's Chief Executive Officer and General Manager.

Salvatore Ferragamo has reported a challenging financial performance for the first nine months of 2024, with group revenue down by 9.8% at constant exchange rates to 744 million euros, on a comparable basis to the same period last year. The luxury brand cited ongoing difficulties in key markets such as Asia Pacific and the wholesale sector as major contributors to the decline. In the third quarter alone, its revenue experienced a decline of 7.2%, impacted by low consumer demand and decreased traffic in secondary retail channels.

The direct-to-consumer (DTC) channel, which consists of directly operated stores and e-commerce platforms, saw a 5.7% decrease in third quarter sales compared to the same period in 2023. However, positive performances in Europe, Japan and Latin America partially offset these losses. Wholesale channels suffered the most significant drop, with a 12.8% decrease in third quarter sales.

Ferragamo's geographical sales breakdown highlighted the challenges faced in Asia Pacific, where sales decreased by 20.5% year-on-year in the third quarter. North America also experienced a decline, with sales down by 7.9% year-on-year. In contrast, markets like Japan showed resilience, recording a 6.7% growth in sales, supported by a strong performance in the DTC segment.

Despite these challenges, Latin America provided some relief, with a 9.0% increase in third quarter sales over the same quarter of the prior year, primarily driven by the DTC segment. Europe showed a slight growth, with a 1.2% increase in sales during the third quarter. The brand's DTC channels performed well in the region, while the secondary and wholesale sectors continued to struggle. Ferragamo's press release did not include net profit information.

Looking ahead, Ferragamo warned of continued uncertainty in luxury consumer demand for the remainder of the year. As a result, the company expects its operating results for 2024 to be at the lower end of current analyst expectations.