“The second quarter showed again some of the encouraging underlying operating trends that we started to see earlier in the year”, said Marco Gobbetti, Chief Executive Officer and General Manager. However, “our aggregate financial results in the second quarter were significantly impacted by the challenging consumer environment, especially in Asia Pacific, which offset the positive trends in the rest of the world. We have also continued to experience weakness in the wholesale channel, exacerbated by a more selective distribution strategy”, he explained.

Second Quarter Net Sales

In the second quarter of fiscal 2024, Ferragamo’s revenue totalled 296 million euros, a decrease of 6.0% at constant exchange rates and 8.1% at current exchange rates, on a comparable basis to the same period of last year.

The company’s DTC net sales in the second quarter decreased by 3.8% at constant exchange rates and 5.5% at actual exchange rates, as compared to the same period of last year. The positive performance of this channel in Europe and Japan was offset by weakness in the Asia-Pacific region. Meanwhile, wholesale net sales declined even more sharply, by 12.1% at constant exchange rates and 8.7% at actual exchange rates compared to the same period last year.

On a comparable basis to the second quarter of last year, Ferragamo recorded a net sales decrease of 2.9% at constant exchange rates and 2.7% at current exchange rates in the EMEA region, mainly due to the impact of a weak wholesale environment. Similarly, in North America, the group’s net sales declined by 3.2% at constant exchange rates and 1.4% at current exchange rates and in Central and South America by 6.1% at constant exchange rates and 5.4% at current exchange rates.

Despite an improvement quarter on quarter in China, the company’s second quarter net sales still declined by 14.9% year-on-year at both current and constant exchange rates in the Asia Pacific region as a whole due to weakening trends in other Asian countries. In the Japanese market, however, net sales increased by 9.8% at constant exchange rates and declined by 1.7% at current exchange rates, “partly thanks to an increase in tourist flows”.

First Half Results

In the first half of the current year, Ferragamo’s net sales amounted to 523 million euros, a decline of 12.8% at current exchange rates and 10.9% at constant exchange rates, as compared to the same period of 2023.

DTC channel contributed 382 million euros to the total, down by 8.1% at current exchange rates and by 5.5% at constant exchange rates, and the wholesale channel added the remaining 128 million euros, down by 23.1% at current exchange rates and 24.8% at constant exchange rates, as compared to the first half of last year.

The group’s operating result (EBIT) decreased by 41.0% to 28 million euros in the first half of 2024 from 47 million euros in the same period of last year. Pre-tax profit fell by 55.8% to 15 million euros from 34 million euros in the first half of last year.

Overall, Ferragamo’s net profit at the end of June totalled 6 million euros, reflecting a decrease of 71.4% on a comparable basis from 21 million euros in the first half of last year.