Something’s off when a luxury house known for precision and polish begins slipping — fast.
Even worse? There’s no one permanently in the driver’s seat.
That’s exactly where one iconic fashion brand finds itself.
Related: Luxury fashion group reeling after disastrous quarter
After a rocky Q1, it’s dealing with shrinking demand, steep regional losses, and a C-suite that’s still missing its top boss.
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Another red flag? Its most important region appears to have taken a detour.
With traffic down and transitional leadership in place, it’s unclear who’s making the calls or when the brand will course-correct.
A rocky quarter adds pressure to a luxury fashion brand.
Image source: Milhet/Lucas/AFP via Getty Images
Ferragamo’s top region retreats while key product line struggles
According to the company’s latest press release, Salvatore Ferragamo (SFRGF) pulled in €221 million (~$245 million) in Q1 2025, down 2.6% from last year. The company blamed “a difficult macroeconomic environment” for keeping shoppers out of stores.
Asia Pacific, which accounts for nearly a third of Ferragamo’s global business, dropped 13% — the biggest regional hit by far.
Then there’s footwear, Ferragamo’s most iconic category, which slid 9.6%. That’s no small hit, considering footwear makes up a hefty 46.4% of the brand’s total revenue.
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That kind of dip isn’t just a blip. It’s a signal that the brand’s product refresh isn’t landing, especially with the younger, fashion-forward customers Ferragamo has been trying to win over.
All of this is playing out without a permanent CEO. Marco Gobbetti stepped down in March, and Chairman Leonardo Ferragamo is currently assuming executive powers for company governance, backed by a transition committee.
Ferragamo pushes forward, but challenges remain
Ferragamo says it’s revamping its product lines, leaning harder into digital marketing and trying to reengage customers through new pricing and store experiences.
But turning the ship around without a captain is a tall order, especially in a luxury market that’s become more competitive (and more crowded) by the day.
The brand is betting big on leather goods to carry it forward. But execution matters — and right now, execution is in limbo.
Until Ferragamo names a new CEO and proves it can stabilize sales, the uncertainty around its future isn’t going anywhere.
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