Ferragamo net profits plummet 73% in H1

Ferragamo’s net profits plummeted 73% to €6m (£5.1m) for the first half of the year ended 30 June 2024. 

In Q2 2024, total revenues for the luxury retailer amounted to €296m (£253m), down 6% at constant exchange rates, penalised by a “weak” Asian market and wholesale environment.

In H1, group total revenues reached €523m (£448m), down 10.9% compared to the previous year.

In the first half of the year, the retailer reported an operating profit of €28m (£24m), down 41% from €41m (£35m) reported in H1 2023. PBT also declined to €15m (£12m) from €34m (29m) in 2023.

Net sales in the half year declined 12.4% – apparel experienced the biggest loss with a 22% drop in net sales, while footwear, leather goods and silk sales dropped 10.5%, 13.3% and 10.2% respectively. 

Marco Gobbetti, chief executive officer and general manager, said: “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. 

“In a general context of ongoing demand slowdown, we will continue to focus on top-line performance and profitability, expanding our audience and boosting engagement through a refreshed product offer, a full funnel marketing approach, an enriched customer experience with tailored CRM initiatives and a new store concept.”