Ferragamo said first-quarter sales contracted modestly, with consolidated revenues of €209 million, a 1.2% fall on a constant currency basis. That total sat just under a Visible Alpha consensus of €211 million.
The performance reflected a pronounced rebalancing of distribution channels. Wholesale sales plunged 19% year-on-year in the quarter, while the direct-to-consumer (DTC) channel expanded by 5.5% on a constant exchange rate basis. The company reported that the DTC channel represented 77% of total sales in the period.
Company commentary tied the reduction in wholesale to an explicit strategic choice to prioritize DTC operations and a narrower set of key accounts. That shift in channel mix helped sustain revenue even as the wholesale business contracted sharply.
Geographically, Ferragamo said North America delivered a robust performance and supported the group’s results. By contrast, both Europe and the Asia Pacific region were described as weaker contributors to sales during the quarter.
From a market perspective, the quarter left reported sales marginally below consensus estimates while showing divergent trends across channels and regions. The exchange rate referenced in the report was $1 = 0.8564 euros.
Taken together, the figures depict a company leaning into its DTC footprint and key accounts amid softer demand from wholesale partners and mixed regional demand patterns. Management attributed the wholesale reduction to deliberate strategic direction rather than an isolated operational failure, noting the emphasis on DTC and selected key accounts.
Contextual note - The company’s channel mix and regional performance drove the quarter’s outcome: wholesale contraction was the main negative offset by DTC growth and strength in North America, while Europe and Asia Pacific remained areas of relative weakness.