Salvatore Ferragamo drops 7% after H1 results imply limited upside (updated)

Salvatore Ferragamo

04/08/2026 13:38

Adds Barclays comment in paragraphs 5-6, updates share price
** Shares in Italy's Salvatore Ferragamo SFER.MI fall 7% after H1 results on Monday marginally beat expectations but failed to dispel concerns about the luxury brand's future performance 
** First-half sales grew 5% year-on-year, 1% below estimates provided by JP Morgan, while EBIT stood at €21 million ($24 million), ahead of €15 million expected by the broker
** During a post-earnings call, Ferragamo said the sales growth pace had moderated in July, partially reflecting a slowdown in the United States
** JP Morgan says despite positive signs of inflection, the Italian group's execution risk tied to the management transition and the recent share price strength limit the upside for the stock
** Barclays raises its target price on the stock to €6.6 euros from €5.8 after cost cuts lift EBIT profit more than expected
** Keeping its "underweight" rating on lack of upside and ongoing lack of visibility in China, Barclays welcomes "the fact that the brand turnaround is showing improving momentum in the rest of the world"
** Also Italian broker EQUITA cites weakness in China in moving Ferragamo to "reduce" from "hold", pointing to margins "still well below sector's benchmarks" in three to five year's time
** However, EQUITA raises its TP by 12% to €8.2 per share
** Up to the previous session's close, Ferragamo's shares were up 24.5%​ YTD


($1 = 0.8689 euros)

 (Reporting by Fabrizio La Rocca and Valentina Za)
 ((Fabrizio.larocca@thomsonreuters.com))