Ferragamo Swings to Profit as Q2 Sales Rise on Turnaround Efforts

Italian luxury brand Ferragamo returned to profitability in the first half of 2026, supported by sales growth in the second quarter that signals early progress in its ongoing turnaround plan. The company's focus on its directly-owned retail network appears to be yielding positive results.

Second-Quarter Performance

Ferragamo reported that sales in the second quarter rose 4.6% at constant exchange rates. This contributed to a total group revenue of €259 million ($298 million) for the April-to-June period, an increase of 2.4% year-on-year when adjusted for currency fluctuations.

A key driver of this growth was the performance in its direct-to-consumer channels, where sales climbed 6.6% at constant currencies. According to the company, its stores saw higher customer conversion rates, an increase in full-price sales, and a rise in the average price and quantity of items sold per transaction.

Return to Profitability

For the full first half of the year, the Florence-based group posted a net profit of €1.5 million. This marks a significant improvement from the same period last year, which saw an adjusted loss of €16 million.

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The company's core profit also improved substantially, rising by almost a quarter to €90 million compared to the prior year. Ferragamo attributed this gain in part to successful cost control measures.

Outlook and Strategy

Despite the positive quarter, board member Ernesto Greco told analysts that the pace of sales growth had moderated in July. He attributed the slowdown to headwinds in the United States and a strategic decision to shorten the duration of its summer discount period.

Greco, who is part of an advisory committee supporting Chairman Leonardo Ferragamo, also noted the company is considering buying back unsold inventory from stores to protect the brand's exclusive positioning. The luxury group has been operating without a permanent chief executive for more than a year.