Ferragamo Grows Revenue and Returns to Black as Relaunch Strategy Advances

Italian luxury brand Ferragamo has returned to profitability in the first half of the year, posting a net profit of €1.5 million. This marks a significant turnaround from an adjusted loss of €16 million in the prior year's corresponding period. The company's relaunch strategy appears to be gaining traction, particularly evident in the performance of its directly owned shops.

Second-quarter sales grew by 4.6% at constant currencies, with direct-to-consumer sales rising 6.6% in the April-June period. Ferragamo noted an increase in both full-price sales and the average price and number of items sold per customer. Group revenue reached €259 million, a 2.4% increase year-on-year when accounting for foreign exchange rates.

The company's core profit also saw a substantial improvement, increasing by nearly a quarter to €90 million, attributed to strict cost control measures. Ferragamo has been operating without a permanent chief executive for over a year, yet the implemented turnaround efforts are yielding positive financial results.