Italy’s Salvatore Ferragamo returns to H1 profit as DTC sales drive

Italian luxury house Salvatore Ferragamo SpA has returned to profitability in the first half (H1) of 2026, as ongoing strategic execution and continued strength in the direct-to-consumer (DTC) channel drove margin expansion and offset wholesale pressures.

For the first half (H1) ended June 30, 2026, revenues reached €468 million (~$509 million), a decline of 1.3 per cent year on year (YoY) from €474 million in H1 2025. The gross profit increased to €324 million (~$352 million), with gross margin expanding to 69.2 per cent from 67.7 per cent.

Salvatore Ferragamo returned to profit in H1 2026 despite a 1.3 per cent revenue decline, as stronger DTC sales, improved margins and disciplined cost control boosted earnings.
EBITDA rose to €90 million (~$97.8 million), while net profit reached €1.5 million (~$1.63 million).
North America led regional growth, inventory declined, and continued online momentum helped offset weaker wholesale demand.

The gross operating profit (earnings before interest, tax, depreciation and amortisation—EBITDA) rose to €90 million (~$97.8 million), up from €73 million a year earlier, with the EBITDA margin improving to 19.2 per cent from 15.3 per cent. Operating profit (earnings before interest and tax-EBIT) reached €21 million (~$22.8 million), compared to a negative €3 million in the prior year. Net profit for the period was €1.5 million (~$1.63 million), reversing a net loss of €16 million in H1 2025, the company said in a press release.

Regional performance highlights North America and Americas growth

Regionally, North America led growth with H1 2026 net sales up 15.4 per cent at constant exchange rates (+9.7 per cent at current rates), supported by double-digit increases in both DTC and wholesale. Central and South America also saw net sales rise 6.8 per cent at constant exchange rates. In contrast, Europe, the Middle East, and Africa (EMEA) net sales fell 8.6 per cent, and Asia Pacific declined 3.0 per cent, both at constant exchange rates, reflecting ongoing wholesale weakness. Japan posted a 1.0 per cent decrease.

Ferragamo’s DTC channel continued to outperform, with H1 2026 DTC revenue up 6.1 per cent at constant exchange rates, offsetting an 11.6 per cent decline in wholesale sales. All regions except Japan posted positive DTC trends at constant exchange rates. The online channel maintained double-digit growth, driven by higher website traffic and order values. By product, footwear sales rose 2.7 per cent, while leather goods declined 6.6 per cent.

Margin and cost efficiency drive profitability

The company achieved significant margin improvement, with gross margin rising to 69.2 per cent and EBITDA margin to 19.2 per cent. Net operating costs fell 17.0 per cent YoY, reflecting process optimisation, organisational streamlining and cost discipline. Inventory levels were reduced by 10.3 per cent to €277 million (~$301 million / ~₹2,510 crore), and net working capital declined 9.8 per cent. Capital expenditure for the period was €18 million (~$19.56 million / ~₹163 crore), mainly for retail network renovation.

Fibre2Fashion News Desk