Yahoo Lifestyle Salvatore Ferragamo Says DTC Channel Accelerated in January, FY Sales Slid 10.5 Percent
MILAN — Decreasing consumer confidence in Asia-Pacific and a negative trend in the wholesale channel impacted the Salvatore Ferragamo Group’s revenues for the full year.
According to preliminary figures released Thursday, revenues in the 12 months ended Dec. 31 slipped 10.5 percent in 2024 to 1.04 billion euros. At constant exchange rates, revenues were down 8.2 percent.
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Salvatore Ferragamo Group’s chief executive officer and general manager Marco Gobbetti expressed optimism, however, on the start of 2025, noting “January shows an acceleration in our DTC channel’s growth, albeit supported by the different timing of the Chinese New Year and a favorable comparison base versus last year.”
Despite the ongoing luxury slowdown and macro challenges amid what he describes as a “challenging year,” Gobbetti said that the fourth quarter showed positive signs, even though the group posted a 6.7 percent decrease to 291 million euros in preliminary sales.
Declines were led by the Asia Pacific market, which slid 19.7 percent to 291.4 million euros, hit by delivery timing issues, “volatile” direct-to-consumer trends and negative wholesale sales. Total revenues in Japan were down 4.3 percent to 82.9 million euros, with DTC sales in that market offsetting the declines. At constant exchange, Japan sales were up 3.2 percent in the full year. Asia Pacific’s drops were followed by Europe, which was down 8.9 percent to 246.5 million euros. North America sales fell 2.6 percent to 307.6 million euros, with DTC sales also offsetting the impact of negative wholesale sales. South and Central America sales dipped 3 percent to 80.9 million euros, helped by positive primary channel sales.
In 2024, the wholesale channel plunged 21.2 percent to 232.6 million euros, while DTC sales were down 5.8 percent to 776.7 million euros, with the positive performances noted in Europe, the U.S., Japan and Latin America. In the fourth quarter, wholesale performance dropped 21.9 percent while DTC sales dipped just 0.1 percent, rising 0.9 percent at constant exchange rates. The latter, Gobbetti said, was helped by sales of successful icons, such as the Hug bag and the Zina ballet shoe.
“The trend of DTC in Asia-Pacific, albeit showing a modest improvement versus the previous quarter, remained weak, as did wholesale and travel retail, also negatively impacted by different timing in deliveries,” said Gobbetti said.
“Nevertheless, through Q4 we saw encouraging results in our DTC business which was overall in line with last year, with good momentum in our primary DTC channels in Europe and the Americas, where we posted double-digit increases versus Q4 2023,” he said.
In the fourth quarter, North America sales bucked the trend, rising 5.4 percent, driven by purchases from both existing and new customers. The Europe, Middle East and Africa region fell 0.4 percent in the fourth quarter at current exchange, but rose 4.5 percent at constant exchange, driven by sales to both locals and tourists. Asia Pacific sales fell 24 percent.
“In 2024 we completed the roll-out of our new product offer, redesigning and enriching our proposal. In Q4 the positive result of the primary DTC channel was driven by the performance of handbags extending to shoes, in particular thanks to new successful icons, such as the Hug bag and the Zina ballet shoe,” Gobbetti said.
Last year’s efforts were dominated by building brand awareness and driving desirability and engagement, through impactful communication initiatives, including “Three Days in Florence” and “Holiday” campaigns, tailored CRM initiatives and creating a new sophisticated in-store experience, Gobbetti explained, crediting the fourth quarter improved performance to the company’s efforts in enhancing digital channel performances and effective marketing campaigns.
“We are pleased with the foundations we have built and, whilst we remain conscious of the persisting complex market context, we are encouraged by the trends we identified at the end of the year,” he said.
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