Italian luxury fashion house Salvatore Ferragamo swung back to profitability in H1, FY26, delivering €1.5 million in net profit compared to an adjusted loss of €16 million during the prior-year period. Direct-to-consumer (DTC) sales expanded by 6.6 per cent at constant currencies in Q2, FY26, driving group revenues to €259 million. Improved store traffic, higher average transaction values, and reduced markdown periods boosted core operating profit by nearly 25 per cent to €90 million. Turnaround efforts are showing tangible results across our directly owned boutiques, driven by higher full-price sell-through rates, notes Ernesto Greco, Board Member and Advisory Committee Member.

Operational discipline mitigates wholesale volatility

To shield brand equity amid softening wholesale demand across North America and East Asia, Ferragamo is trimming third-party distribution and curbing off-price liquidation. The Florentine house is evaluating targeted inventory buybacks from wholesale partners to maintain strict pricing integrity. Coupled with strategic stock-keeping unit (SKU) rationalization and tighter inventory management, the brand is strengthening gross margins while positioning its core footwear and leather goods lines for sustainable recovery across global markets.

Iconic Italian luxury footwear and leather house

Founded in 1927 in Florence, Italy, Salvatore Ferragamo crafts luxury footwear, leather goods, and ready-to-wear apparel. Serving high-net-worth consumers across Europe, North America, and Asia, the group targets sustained profit recovery through direct-to-consumer expansion, supported by solid net liquidity of €144 million.