The fashion house Salvatore Ferragamo launched a brand transformation and recovery plan following their €16 million ($18 million) net loss during the first half of 2025 after achieving €6 million profit in the previous year.
The Italian luxury house announced its brand positioning review and established a specific recovery strategy to drive growth and enhance profitability. The company has introduced new marketing strategies along with improved inventory control systems and product restructuring as part of its recovery plan.
The brand reported a 7.1% decline in sales to €474 million at constant exchange rates because of weak wholesale performance and decreased Asia Pacific consumer interest which used to be the brand’s main market. The company operates without a CEO since Marco Gobbetti left his position in March.
The company initiated its transformation during the second quarter and expects complete results to emerge during the end of this year with sustained growth throughout 2026.
The luxury industry faces challenges from cautious consumers and economic instability and changing market preferences among different regions. The success of Ferragamo’s turnaround depends on its ability to restore its heritage brand while adapting to evolving luxury market trends according to analysts.
The company must demonstrate initial success while it establishes sales stability and defines its leadership structure for investors to monitor.
