tourbillions
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we will see, i think they are just in the middle of something and maybe its a long term plan.
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Maximilian Davis - Designer, Creative Director of Ferragamo
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LadyJunon
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Funny that I brought up Ferragamo today, because they finally switched out the logo on the sign. Window display is still sh*t though. Honestly, Ferragamo needs to stop fence-sitting and decide whether they want to be quiet luxury or fashion-forward.
PDFSD
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For sure Davis brought some edge and put Ferragamo into the fashion conversation with the buzz surrounding him, agree on this positive note in regards to his appointment, but TOM FORD said it well: marketing is for hollow products that have nothing to tell and need to be pushed via marketing tactics, if you design something that people desire that's the marketing already with the advertising to show what you have to tell, when people desire it! they buy it!!, you have sales and success.
Its that bloody simple ...we reached a time now that mediocrity is being overanalyzed like with Ancora guy and all possible reasons mentioned for lack of success, then just seeing that someone has the it factor or not! the product is king......begins with that and ends with that.
Its that bloody simple ...we reached a time now that mediocrity is being overanalyzed like with Ancora guy and all possible reasons mentioned for lack of success, then just seeing that someone has the it factor or not! the product is king......begins with that and ends with that.
Phuel
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In better days, when a superior designer lead this brand, Massimiliano could effortlessly balance luxury and fashion forward. Just unfortunate that he worked in that transitional phase of fashion era where silly clownwear/childrenswear began taking over, so anything that resembled modern classic was rejected. Maximilian still seems stuck on diffusion line influenced by a phantom mainline, but masquerading as the mainline. That the marketing can’t even decide what it wants to be and sell to— with the campaigns looking so different from Season to Season, really reveals how indecisive this brand is.
Frankly, he’s not an awful designer— at least he’s competent, unlike the one that ruined Givenchy and the current one that’s ruining McQueen. But there’s just nothing covetable about his 90s minimalism-fuelled nostalgia. It’s just... meandering. If I must summon a positive note, his color-palette has always been.. nice.
rowjellies
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-WWD
more bad news at Ferragamo. well, some good news for them, that horrible The Row Margaux-dupe Hug handbag with the ugly Gancini hardware is doing well.
PDFSD
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yslforever
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Gancini is really ugly, I understand why they don't let the CD touch it, heritage and all that, but I will never find it appealing.
PDFSD
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NEWS
Ferragamo’s aggregate financial results in the second quarter were “significantly impacted by the challenging consumer environment, especially in Asia Pacific,” said CEO Marco Gobbetti.
Operating profit at Salvatore Ferragamo declined 41 percent in the first half of the year, as revenues slowed down in all the main regions, the luxury group said on Thursday.
Earnings before interest and tax came in at 28 million euros ($30.2 million) in the first half, beating analysts expectations of a drop to 20 million euros, according to a consensus cited by Italian broker Equita.
Revenues at the leather group fell 6 percent at constant exchange rates in the second quarter.
“Our aggregate financial results in the second quarter were significantly impacted by the challenging consumer environment, especially in Asia Pacific, which offset the positive trends in the rest of the world”, chief executive Marco Gobbetti said in a statement.
Ferragamo FW 2024
Ferragamo first half 2024 operating profit down 41%
Posted On August 2, 2024 CPP-LUXURYFerragamo’s aggregate financial results in the second quarter were “significantly impacted by the challenging consumer environment, especially in Asia Pacific,” said CEO Marco Gobbetti.
Operating profit at Salvatore Ferragamo declined 41 percent in the first half of the year, as revenues slowed down in all the main regions, the luxury group said on Thursday.
Earnings before interest and tax came in at 28 million euros ($30.2 million) in the first half, beating analysts expectations of a drop to 20 million euros, according to a consensus cited by Italian broker Equita.
Revenues at the leather group fell 6 percent at constant exchange rates in the second quarter.
“Our aggregate financial results in the second quarter were significantly impacted by the challenging consumer environment, especially in Asia Pacific, which offset the positive trends in the rest of the world”, chief executive Marco Gobbetti said in a statement.
Ferragamo FW 2024
PDFSD
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full report
WWD.com
August 1, 2024
MILAN — A challenging consumer environment in Asia Pacific and a weak wholesale channel dented Salvatore Ferragamo’s performance in the first half of the year.
However, on Thursday, Marco Gobbetti, chief executive officer and general manager of the Florence-based luxury company, touted during a conference call with analysts the “encouraging signs” emerging from the new shoes and handbags collections, which represent almost 87 percent of the business, and the expansion of the brand’s customer base to include a younger demographic. Gobbetti mentioned as examples the Zina ballerine, or ballet flats, and the Hug handbags, which have become bestsellers and “over-performed.”
“The second quarter showed again some of the encouraging underlying operating trends that we started to see earlier in the year,” said Gobbetti. “Retail full-price sales showed a positive trend in the U.S., Europe, Japan and Latin America.”
He also underscored the “excellent resonance” of the fall 2024 collection designed by creative director Maximilian Davis, who joined the brand in March 2022, saying that the “product transition was fundamentally completed” with between 50 and 60 percent of sales coming from a continuative offer comprising both new and iconic products. He also said the collections have been expanded for “different occasions and seasonal opportunities.”
While Gobbetti sounded positive notes, Ferragamo in the first six months ended June 30 reported a 12.8 percent decrease in revenues to 523.1 million euros compared with 600.1 million euros in the same period last year. At constant exchange rates, sales decreased 10.9 percent.
In the second quarter, revenues were down 8.1 percent to 296 million euros, dented by a weak Asian market and the wholesale environment and Gobbetti said that Ferragamo has been implementing a more selective distribution strategy, which also impacted the channel.
“In a general context of ongoing demand slowdown, we will continue to focus on top-line performance and profitability, expanding our audience and boosting engagement through a refreshed product offer, a full-funnel marketing approach, an enriched customer experience with tailored CRM initiatives and a new store concept,” said Gobbetti.
The latter was unveiled with the women’s Milan flagship on Via Montenapoleone designed by Vincent Van Duysen last February and then rolled out at Isetan and in Forte dei Marmi, and Gobbetti said the plan is to continue to renew the brand’s doors.
As of June 30, there were 373 stores globally. “The size of the network is relatively stable and we are not planning to resize it significantly,” he said, responding to an analyst.
In the first half, net profit, including a minority interest, plunged to 6 million euros compared with 21 million euros in the same period last year.
Earnings before interest, taxes, depreciation and amortization amounted to 117 million euros, down 12.7 percent from 134 million euros, and with an incidence on revenues of 22.4 percent.
Operating profit fell 41 percent to 28 million euros, compared with 47 million euros last year.
The direct-to-consumer channel in the first half was down 8.1 percent to 381.6 million euros, representing 73 percent of the total. Retail in the second quarter was down 5.5 percent, hurt by a weak Asia Pacific area, which did not balance the positive performances in Europe and Japan and North America.
In the first half, sales of the wholesale channel decreased 23.1 percent to 128.3 million euros. Gobbetti said the company had “not seen a huge improvement in travel retail.”
Revenues in the Europe, Middle East and Africa region were down 16.1 percent to 126.4 million euros, accounting for 24.8 percent of the total.
Sales in North America decreased 5.5 percent to 147 million euros, representing 28.8 percent of the total.
Revenues in Central and South America decreased 6.9 percent to 37.6 million euros.
The Japanese market in the second quarter was up 9.8 percent at constant exchange rates, but down 1.7 percent at current exchange rates, partly thanks to an increase in tourist flow.
In the first half sales were down 9 percent to 41.3 million euros but up 2.6 percent at constant exchange.
In the first half, sales in Asia Pacific decreased 17 percent to 157.5 million euros, accounting for 30.9 percent of the total. In the second quarter, the trend in China showed an improvement, as sales in that market were down 3.9 percent, compared with a 21.1 percent decrease in the first quarter at constant exchange rates.
“The Chinese cluster was negative overall in the first half, and [spending] abroad is still below pre-COVID,” said Gobbetti. “The shift to Japan is growing and in Europe only marginally but not as much as in Japan.” Spending of the American cluster accelerated in the second quarter, buying locally and abroad above last year, he added.
Asked to elaborate on the sales trends, Gobbetti said that “April was not great and volatile, May was the best,” full-price sales in June were “good, impacted by less markdowns and less inventory” and that July showed “similar trends geographically, with Europe performing well, as Latin America and Japan accelerated while the U.S. slightly decreased.” He added that China was “progressively slowing down but this is not specific to Ferragamo.”
The executive highlighted that Ferragamo was being “very attentive to cost cutting” given the volatility of the scenario and the softness in Greater China.
By category, sales of footwear in the first half fell 10.5 percent to 238.8 million euros, accounting for 46.8 percent of the total.
Leather goods decreased 13.3 percent to 203.5 million euros, representing 40 percent of the total.
Apparel was down 21.9 percent to 30.3 million euros and silk and other were down 10.2 percent to 37.2 million euros.
Conversely to some of its peers, Ferragamo did not increase its prices, but Gobbetti said that, introducing new products, there was an “organic update on prices. We don’t expect to increase them in the short term.”
As of June 30, capital expenditure totaled 21 million euros, compared with 17 million euros in the first half last year reflecting the focus on renovating the retail network. Gobbetti said that capex will accelerate in the second half.
The adjusted net financial position was positive for 167 million euros compared with 278 million euros positive at the end of June last year, including 39 million euros cash out for the purchase of the minority interests in the three joint ventures in Greater China. Including the IFRS16 effect, the net financial position at the end of June was negative for 512 million euros.
WWD.com
August 1, 2024
Ferragamo Reports Contraction in H1 Revenue, Profitability
However, CEO Marco Gobbetti touted "encouraging signs" and "excellent resonance" of the fall 2024 collection by creative director Maximilian Davis.MILAN — A challenging consumer environment in Asia Pacific and a weak wholesale channel dented Salvatore Ferragamo’s performance in the first half of the year.
However, on Thursday, Marco Gobbetti, chief executive officer and general manager of the Florence-based luxury company, touted during a conference call with analysts the “encouraging signs” emerging from the new shoes and handbags collections, which represent almost 87 percent of the business, and the expansion of the brand’s customer base to include a younger demographic. Gobbetti mentioned as examples the Zina ballerine, or ballet flats, and the Hug handbags, which have become bestsellers and “over-performed.”
“The second quarter showed again some of the encouraging underlying operating trends that we started to see earlier in the year,” said Gobbetti. “Retail full-price sales showed a positive trend in the U.S., Europe, Japan and Latin America.”
He also underscored the “excellent resonance” of the fall 2024 collection designed by creative director Maximilian Davis, who joined the brand in March 2022, saying that the “product transition was fundamentally completed” with between 50 and 60 percent of sales coming from a continuative offer comprising both new and iconic products. He also said the collections have been expanded for “different occasions and seasonal opportunities.”
While Gobbetti sounded positive notes, Ferragamo in the first six months ended June 30 reported a 12.8 percent decrease in revenues to 523.1 million euros compared with 600.1 million euros in the same period last year. At constant exchange rates, sales decreased 10.9 percent.
In the second quarter, revenues were down 8.1 percent to 296 million euros, dented by a weak Asian market and the wholesale environment and Gobbetti said that Ferragamo has been implementing a more selective distribution strategy, which also impacted the channel.
“In a general context of ongoing demand slowdown, we will continue to focus on top-line performance and profitability, expanding our audience and boosting engagement through a refreshed product offer, a full-funnel marketing approach, an enriched customer experience with tailored CRM initiatives and a new store concept,” said Gobbetti.
The latter was unveiled with the women’s Milan flagship on Via Montenapoleone designed by Vincent Van Duysen last February and then rolled out at Isetan and in Forte dei Marmi, and Gobbetti said the plan is to continue to renew the brand’s doors.
As of June 30, there were 373 stores globally. “The size of the network is relatively stable and we are not planning to resize it significantly,” he said, responding to an analyst.
In the first half, net profit, including a minority interest, plunged to 6 million euros compared with 21 million euros in the same period last year.
Earnings before interest, taxes, depreciation and amortization amounted to 117 million euros, down 12.7 percent from 134 million euros, and with an incidence on revenues of 22.4 percent.
Operating profit fell 41 percent to 28 million euros, compared with 47 million euros last year.
The direct-to-consumer channel in the first half was down 8.1 percent to 381.6 million euros, representing 73 percent of the total. Retail in the second quarter was down 5.5 percent, hurt by a weak Asia Pacific area, which did not balance the positive performances in Europe and Japan and North America.
In the first half, sales of the wholesale channel decreased 23.1 percent to 128.3 million euros. Gobbetti said the company had “not seen a huge improvement in travel retail.”
Revenues in the Europe, Middle East and Africa region were down 16.1 percent to 126.4 million euros, accounting for 24.8 percent of the total.
Sales in North America decreased 5.5 percent to 147 million euros, representing 28.8 percent of the total.
Revenues in Central and South America decreased 6.9 percent to 37.6 million euros.
The Japanese market in the second quarter was up 9.8 percent at constant exchange rates, but down 1.7 percent at current exchange rates, partly thanks to an increase in tourist flow.
In the first half sales were down 9 percent to 41.3 million euros but up 2.6 percent at constant exchange.
In the first half, sales in Asia Pacific decreased 17 percent to 157.5 million euros, accounting for 30.9 percent of the total. In the second quarter, the trend in China showed an improvement, as sales in that market were down 3.9 percent, compared with a 21.1 percent decrease in the first quarter at constant exchange rates.
“The Chinese cluster was negative overall in the first half, and [spending] abroad is still below pre-COVID,” said Gobbetti. “The shift to Japan is growing and in Europe only marginally but not as much as in Japan.” Spending of the American cluster accelerated in the second quarter, buying locally and abroad above last year, he added.
Asked to elaborate on the sales trends, Gobbetti said that “April was not great and volatile, May was the best,” full-price sales in June were “good, impacted by less markdowns and less inventory” and that July showed “similar trends geographically, with Europe performing well, as Latin America and Japan accelerated while the U.S. slightly decreased.” He added that China was “progressively slowing down but this is not specific to Ferragamo.”
The executive highlighted that Ferragamo was being “very attentive to cost cutting” given the volatility of the scenario and the softness in Greater China.
By category, sales of footwear in the first half fell 10.5 percent to 238.8 million euros, accounting for 46.8 percent of the total.
Leather goods decreased 13.3 percent to 203.5 million euros, representing 40 percent of the total.
Apparel was down 21.9 percent to 30.3 million euros and silk and other were down 10.2 percent to 37.2 million euros.
Conversely to some of its peers, Ferragamo did not increase its prices, but Gobbetti said that, introducing new products, there was an “organic update on prices. We don’t expect to increase them in the short term.”
As of June 30, capital expenditure totaled 21 million euros, compared with 17 million euros in the first half last year reflecting the focus on renovating the retail network. Gobbetti said that capex will accelerate in the second half.
The adjusted net financial position was positive for 167 million euros compared with 278 million euros positive at the end of June last year, including 39 million euros cash out for the purchase of the minority interests in the three joint ventures in Greater China. Including the IFRS16 effect, the net financial position at the end of June was negative for 512 million euros.
Phuel
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^^^ Along with the brand, Maximilian was also heavily promoted in Asia, more specifically China. He was featured prominently in all the high-profile Chinese fashion publications. And strangely— Asian/Chinese representation was allocated to a token presence with the branding when he first came on. It’s insulting to rely on a rather nationalist demographic-- and yet, diminish that demographic’s representation with your branding LMFAO They deserve to be rejected by the Chinese— more so when there are already Chinese brands that offer that similar high end department-store aesthetic as Maximilian’s. Again, his is nice enough, but as you've already posted, isn’t anything special, let alone extraordinary. No one would bat a lash if he was replaced this very moment.
rowjellies
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the Chinese LOVED the old school Ferragamo (the era with the cursive logo). it's in the vein of what the Chinese love, luxury labels with a lot of heritage and a bit conservative in style. for instance, they love Bally, Tod's, Hermes etc. not sure how they feel about the rebrand.
i get the feeling that the current branding and style is a bit out of touch with what the majority of Chinese clients like. it appeals to Tracee Lee Ellis, Beyonce, and Gabriella Karefa-Johnson... the same girl who probably likes Pyer Moss (lol), Christopher John Rogers. Bianca Saunders.
i get the feeling that the current branding and style is a bit out of touch with what the majority of Chinese clients like. it appeals to Tracee Lee Ellis, Beyonce, and Gabriella Karefa-Johnson... the same girl who probably likes Pyer Moss (lol), Christopher John Rogers. Bianca Saunders.
Totally agree with this… I feel like he’s done a decent job at Ferragamo with what he’s been given… There seems to be somewhat a disconnect and I don’t think they are a right fit… But for his talent to really shine he needs a bigger house that will really give him the tools he needs to flourish… Out of the designers of his age I think I’m definitely excited where his talent can go… I see his time at Ferragamo as a training ground of soughts… I think he could have a really bright future
rowjellies
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I’m not sure if they’ll get rid of Gobbetti now. I’m sure they want to. But when you are in crisis it’s not a good time to ditch your leader. Esp one with a lot of gravitas like Gobbetti (vs the Burberry CEO).
I could see they doing something like Bally, reigning in all the excess, hiring a very experienced behind-the-scenes CD, and going back to their roots.
I could see they doing something like Bally, reigning in all the excess, hiring a very experienced behind-the-scenes CD, and going back to their roots.
He designs beautiful clothes but they never quite hit that mark of desirability for me that makes me want to go to the boutique. I think he should be more strategic in his collections, he doesn’t need to show so many looks and pieces. Less is more to drive a theme and narrative which they so desperately need because who is the Ferragamo woman and man right now.
Lola701
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The Ferragamo family also needs to be very specific about what they want.
It can’t possibly work if they aren’t fully invested in changing and pushing things.
And that’s why, everything needs to be a common vision with all parties.
At this point, they will change CD. What will happen? They will go back to the old logo? They will change their stores? Their line up of products?
Maybe the pitch should have been clearer from the get go.
It can’t possibly work if they aren’t fully invested in changing and pushing things.
And that’s why, everything needs to be a common vision with all parties.
At this point, they will change CD. What will happen? They will go back to the old logo? They will change their stores? Their line up of products?
Maybe the pitch should have been clearer from the get go.
tourbillions
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can they even find anyone better than maximillian whos willing to go to their brand with so many bigger brands open for the cd job.
TaylorBinque
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I think Davis has done what he could but Ferragamo suits need to decide where they want to fit in the market. I went to their Firenze boutique and it was such a mismatching energy. Some conservative, some fashion. It doesn't feel like it has personality.
tricotineacetat
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The creative designer position at Ferragamo is as unthankful as it is at other houses such as Cerruti, Trussardi or Blumarine - There’s never enough will to modernize and therewith consequently give an overhaul the time it needs to settle in. Worst of all even when there are licensed goods still circulating around which dilute the impact of a new fashion direction.
Ferragamo will most likely not renew with Maximilian Davis to hire another designer who will face the same fate for 2-3 years… but what for? Do they even turn profit running brands like that?
Ferragamo will most likely not renew with Maximilian Davis to hire another designer who will face the same fate for 2-3 years… but what for? Do they even turn profit running brands like that?
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