Salvatore Ferragamo: Weak DTC business results in negative quarterly results

Italian fashion house Salvatore Ferragamo S.p.A. reported a slight drop in revenue in the first quarter of the current financial year. This result was primarily due to the negative consumer climate in the Asia-Pacific region and the weak performance of the direct-to-consumer (DTC) business.

As of March 31, group revenue amounted to 221 million euros. Compared to the previous year, when 227 million euros were generated, this is a decrease of 2.6 percent.

The weak direct-to-consumer channel (DTC) made a significant contribution to the decline, with net revenue falling by 3.6 percent to 164 million euros. The positive results in Europe, Japan and Latin America only partially offset the negative development in the Asia-Pacific region. In contrast to the DTC business, wholesale developed positively and recorded an increase in net revenue of 7.9 percent to 54 million euros. All regions achieved positive results here.

The EMEA region recorded an increase in revenue of 9.1 percent in the first quarter of 2025, followed by Japan (plus 4.1 percent), North America (plus 3.7 percent) and Central and South America (plus 0.8 percent). Revenue in the Asia-Pacific region fell by 13 percent.

“The difficult macroeconomic environment, which weighed on consumer confidence, impacted the results of the first quarter, leading to a decline in customer frequency, which was only partially offset by a higher conversion rate and an increase in the average purchase value,” the company said in a press release.

As a measure against consumer restraint, the traditional house is focusing on consolidating the handbags category, optimising the range of women's shoes and expanding the price ranges.