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Salvatore Ferragamo S.p.A. (IT:SFER)
:SFER
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Salvatore Ferragamo S.p.A. (SFER) AI Stock Analysis

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IT:SFER

Salvatore Ferragamo S.p.A.

(LSE:SFER)

Rating:45Neutral
Price Target:
€5.00
▲(4.82% Upside)
Salvatore Ferragamo's stock is facing significant challenges primarily due to poor financial performance and unattractive valuation. The technical analysis also indicates a bearish trend. The combination of negative profitability and declining stock momentum results in a low overall stock score.
Positive Factors
Market Outperformance
North America recorded positive organic growth of +6% in 4Q24, significantly exceeding consensus estimates by over 10% due to strong trends in the primary DTC channel.
Retail Performance
Ferragamo's retail organic growth returned to positive territory, with a +1% increase in 4Q24, driven by strong performance in handbags and shoes.
Negative Factors
APAC Performance
APAC performance was softer than expected in 4Q24, with a decline to -25% due to weak trends in both DTC and wholesale channels.
Tariff Uncertainty
Uncertainty surrounding U.S. tariffs and their potential negative impact on consumer confidence in the U.S., Europe, and China weighs on Ferragamo's 2025 outlook.
Wholesale Weakness
Ferragamo's wholesale segment weakened further in 4Q24, declining to -19% at c.FX, reflecting a negative trend contrary to previous management commentary.

Salvatore Ferragamo S.p.A. (SFER) vs. iShares MSCI Italy ETF (EWI)

Salvatore Ferragamo S.p.A. Business Overview & Revenue Model

Company DescriptionSalvatore Ferragamo S.p.A. is a renowned Italian luxury goods company headquartered in Florence, Italy. Established in 1927, the company is a leader in the fashion industry, specializing in the design, production, and distribution of high-end footwear, leather goods, apparel, silk products, and accessories. Salvatore Ferragamo is celebrated for its dedication to craftsmanship, innovative design, and its commitment to using the finest materials, making it a prestigious name in the global luxury market.
How the Company Makes MoneySalvatore Ferragamo S.p.A. generates revenue primarily through the sale of its luxury fashion products, which include footwear, leather goods, apparel, accessories, and fragrances. The company operates a retail network of directly operated stores and also distributes its products through a select number of franchisees and high-end department stores worldwide. Additionally, Ferragamo benefits from a strong e-commerce platform, enhancing its global reach and customer engagement. Strategic partnerships and collaborations with influential designers and celebrities further boost brand visibility and sales. The company's commitment to maintaining a premium brand image and delivering quality products at a luxury price point is a key factor in its revenue generation strategy.

Salvatore Ferragamo S.p.A. Financial Statement Overview

Summary
Salvatore Ferragamo S.p.A. is facing financial difficulties with declining revenues and profitability. The company's balance sheet shows manageable leverage but weakened equity, and while cash flow remains positive, the negative EBIT and net income indicate significant operational challenges.
Income Statement
40
Negative
Salvatore Ferragamo S.p.A. has faced declining revenues and profitability over recent years. The 2024 annual report shows a negative EBIT and net income, indicating operational challenges. Gross profit margin remains relatively stable but at lower levels compared to prior years. Revenue growth has been negative, and the net profit margin has suffered significantly due to losses.
Balance Sheet
55
Neutral
The company's balance sheet indicates a moderate debt-to-equity ratio, suggesting a reasonable level of leverage. However, the equity ratio has declined, reflecting reduced financial stability. Return on equity has turned negative in 2024 due to net losses, highlighting profitability issues.
Cash Flow
60
Neutral
Although Salvatore Ferragamo has faced operational challenges, it maintains positive operating cash flow, indicating some stability in its cash-generating capabilities. Free cash flow growth has been inconsistent, but there is a positive free cash flow in 2024, which is a positive sign amidst the earnings decline.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.04B1.16B1.25B1.14B915.83M
Gross Profit740.01M839.43M901.12M780.94M565.54M
EBITDA130.50M241.85M287.84M299.03M122.08M
Net Income-68.09M26.06M69.61M78.65M-71.70M
Balance Sheet
Total Assets1.70B1.81B1.72B1.85B1.71B
Cash, Cash Equivalents and Short-Term Investments238.19M304.26M401.35M511.80M328.16M
Total Debt789.64M791.17M604.59M736.36M753.91M
Total Liabilities1.08B1.09B944.88M1.06B1.00B
Stockholders Equity619.09M721.17M751.81M764.31M693.58M
Cash Flow
Free Cash Flow99.89M45.76M211.21M331.64M58.52M
Operating Cash Flow170.62M117.50M267.07M376.13M88.33M
Investing Cash Flow-85.85M-96.97M-65.86M-30.89M-37.39M
Financing Cash Flow-111.91M-150.09M-323.28M-160.29M47.26M

Salvatore Ferragamo S.p.A. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.77
Price Trends
50DMA
5.23
Negative
100DMA
5.55
Negative
200DMA
6.15
Negative
Market Momentum
MACD
-0.07
Positive
RSI
33.59
Neutral
STOCH
11.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SFER, the sentiment is Negative. The current price of 4.77 is below the 20-day moving average (MA) of 5.15, below the 50-day MA of 5.23, and below the 200-day MA of 6.15, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 33.59 is Neutral, neither overbought nor oversold. The STOCH value of 11.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:SFER.

Salvatore Ferragamo S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€6.56B54.8925.65%0.97%12.21%4.24%
70
Neutral
€237.58M28.46
1.94%9.98%-16.79%
69
Neutral
€5.78B11.598.98%4.34%2.47%7.85%
64
Neutral
€12.70B20.7518.89%2.78%0.87%-5.61%
61
Neutral
$16.54B10.12-9.02%3.34%1.44%-22.51%
45
Neutral
€769.40M112.46-20.18%2.03%-8.65%-1512.63%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:SFER
Salvatore Ferragamo S.p.A.
4.64
-2.86
-38.08%
IT:MONC
Moncler S.p.A.
46.93
-3.94
-7.74%
IT:BC
Brunello Cucinelli SpA
96.44
14.48
17.67%
IT:PIRC
Pirelli & C. SpA
5.78
0.76
15.09%
IT:FPE
FOPE S.p.A.
44.00
17.57
66.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 14, 2025