Ferragamo shares had a rough morning on the Milan Stock Exchange following the release of its first-quarter 2026 financial results. Despite a Q1 in line with expectations, the market reacted negatively to the slowdown in the wholesale channel and challenges in the Chinese market. The stock fell by more than 15%. In the January-March 2026 period, Ferragamo’s sales reached €209 million, down 5.5% at reported exchange rates and down 1.2% at constant exchange rates compared to the first quarter of 2025: here are the reasons.
Q1 in line with expectations
Given the current situation facing the Florentine fashion house, the first-quarter results are, all things considered, quite good. And they are beginning to show signs of progress in the company’s turnaround. During a conference call with analysts, as reported by
WWD-Footwear News, Ferragamo Executive Board member
Ernesto Greco said that “April and early May are confirming the trends seen in the first quarter”.
Ferragamo has continued to focus on footwear and leather goods, with Greco revealing that the Hug handbag remains the brand’s best seller. “The group will continue to prioritize top-line quality and distribution, while maintaining a strong focus on operational discipline and financial sustainability”, Greco stated, highlighting a solid start to the year despite global instability.
Ferragamo feeling the weak Chinese market
Direct sales (across 350 company-operated stores plus online) grew by 5.5% at constant exchange rates (-1.9% at reported exchange rates) thanks to strong performance in the Americas and positive results in Europe and Asia-Pacific. Japan was the only outlier, while, according to Greco, China has yet to recover. One of the factors that caused the stock to slip on the market is the (larger-than-expected) decline of 21.8% at reference exchange rates and 19% at constant exchange rates in the wholesale channel. This decrease is due to the fact that the company is focusing on direct retail, cutting ties with many retailers.
The turnaround is just beginning
Bernstein analysts, who kept their estimates for fiscal year 2026 unchanged, stated in a report that “Ferragamo’s recovery is moving in the right direction”. Management’s priorities also appear to be on the right track: strengthening the brand’s appeal, refining the product mix, and ensuring consistent communication across all channels. However, the turnaround is just beginning, and Ferragamo will likely continue to face short-term challenges in order to achieve long-term gains”.
Photo from Ferragamo
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