Ferragamo’s third-quarter results show how difficult it remains to turn selective distribution and product momentum into broader sales growth. Revenue fell 3.5% year on year to €207 million, as a sharp wholesale contraction outweighed steadier direct-to-consumer performance. The decline puts a limit on what the company’s strategy has delivered so far: a stronger emphasis on full-price sales and brand positioning hasn’t yet produced growth across the business.
For the first nine months of 2026, revenue held flat at €675 million. The group cited geopolitical unrest and weaker summer demand, while its ongoing turnaround continued to face uneven conditions across markets and sales channels. Those factors complicate the read-through from one quarter: Ferragamo is changing how it sells and where it invests, but external pressure is arriving at the same time as the company tries to rebuild demand.
Wholesale pullback weighs on results
Wholesale revenue dropped 19.1% in the quarter. Ferragamo linked the fall to its more selective distribution strategy and efforts to sharpen the brand’s market position. The approach is intended to improve sales quality, but its near-term effect is a smaller wholesale contribution. That trade-off can make sense if it protects pricing and brand presentation, yet it leaves the company needing stronger sales elsewhere to offset the volume it gives up.
Direct-to-consumer sales were flat year on year. North America and Europe delivered growth in full-price sales, while softer demand in Asia, especially China, offset those gains. Ferragamo has identified DTC as a priority, but the latest quarter shows that channel growth remains uneven. Full-price performance offers a useful signal about demand without discounting, though flat total DTC sales suggest those gains haven’t yet broadened enough to lift the channel.
Executive board member Ernesto Greco said the company was focused on “increasing the sales quality in the primary business” and would continue with what he called “[strong] discipline.” The group is also working to align creative direction, merchandising and logistics so that interest in creative director Maximilian Davis’s runway collections translates into purchases. That connection is harder to achieve than a successful show or a strong product image might suggest: customers need to find the right items, in the right markets, when they’re ready to buy. “We are probably on the right track, but still there is room for improvement,” Greco said.
North America leads regional growth
North America was Ferragamo’s strongest major region over the first nine months, with sales up 11.2%. Central and South America gained 4.8%. Greco described Latin America as a promising market, citing the brand’s awareness and reputation there, and said Ferragamo was assessing whether to expand its presence. That assessment matters because regional growth can support a turnaround, but expansion only helps if the company can sustain demand and serve customers effectively.
Other regions contracted: Europe fell 7.4%, Asia-Pacific declined 5.3%, and Japan slipped 2.2%. The company expects some third-quarter pressures in the US, Europe and other Western markets to ease, while conditions in China and Japan could persist. These diverging results leave Ferragamo reliant on a narrower set of growth pockets, even as weakness in larger or strategically important markets weighs on the total.
In China, Ferragamo plans to close some stores in Tier 3 cities and reinforce e-commerce as it works to rebuild the business. The move points to a more selective physical footprint and a greater role for online sales. But changing the mix of stores and digital channels won’t, by itself, resolve weaker demand; the products and customer experience still have to earn a response. And this is the part most people overlook: distribution choices can improve efficiency, but they can’t substitute for products that customers want to buy.
Apparel grows while leather goods lag
Across product categories, apparel led growth in the first nine months, rising 5.1%. Silk and other products increased 3.9%, while footwear advanced 2.6%. Leather goods moved in the opposite direction, falling 3.5% and remaining a notable weak spot. The split suggests that product momentum isn’t uniform across Ferragamo’s offer. Apparel’s gains are encouraging, but the decline in leather goods shows that a broader recovery can’t be inferred from strength in a single category.
The numbers here are underwhelming for a company still working to make its creative direction translate into consistent demand. That doesn’t mean the turnaround has failed; it means the evidence remains mixed. If you’re working in this space, the distinction matters: improving full-price sales and tightening distribution may strengthen the business over time, but they’re not the same as sustained revenue growth.
The next test for the turnaround
Ferragamo’s second-quarter return to growth gave way to another decline in Q3. The next test is whether tighter distribution, stronger regional execution and better conversion of runway interest can support demand as the company continues its gradual turnaround. That will require progress across several connected tasks: stabilizing weaker regions, sustaining full-price performance, and addressing softness in leather goods.
For now, the company’s strategy is clearer than its results. Wholesale is shrinking sharply, DTC is holding steady, and regional and category performance point in different directions. A gradual turnaround can take time, but Ferragamo will need more consistent growth to show that its choices are adding up. Still work to do.