Ferragamo shares jump on stronger-than-expected operating profit

Salvatore Ferragamo

12/03/2026 09:55

MILAN, March 12 (Reuters) - Shares in Salvatore Ferragamo SFER.MI jumped over 8% in morning trade on Thursday, a day after the Italian luxury leather goods group reported a 2025 operating profit that beat market expectations.

Ferragamo said adjusted earnings before interest and taxes (EBIT) fell 30% last year, to 24.3 million euros  ($28.08 million), but the figure was better than what analysts were expecting.

Shares were up 8.2% as of around 0950 GMT.

The Florence-based company, which is pursuing a turnaround plan, said it would continue to optimise its distribution network. It plans to close around 70 lower-performing stores in 2025-2026, mainly in China, but also open new ones in more attractive cities, with an overall reduction of around 30.

Sales in the first months of 2026 recorded double-digit growth in the United States, while Europe remained broadly flat and China was still negative, executive board member Ernesto Greco said in a post-results call with analysts on Wednesday.

Greco is member of the advisory committee that is supporting the company's chairman pending the arrival of a new CEO, after Marco Gobbetti left last year.

Greco added that the wholesale channel could remain under pressure due to the group's more selective approach and the temporary suspension of shipments to U.S. department store Saks earlier in the year, which have now resumed.

Amid tensions due to the ongoing Iran war, Ferragamo said the Middle East accounted for less than 2% of its revenues, meaning it did not expect a direct impact. Management cautioned, however, that the luxury sector as a whole could feel the effects if the conflict dragged on.

($1 = 0.8653 euros)

 (Reporting by Elisa Anzolin, editing by Alvise Armellini)

 ((elisa.anzolin@thomsonreuters.com; 0039 0266129692;))