Ferragamo: -10.5% revenue in 2024 while search for new CEO continues
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Shares of the Ferragamo group opened with a negative trend on the last session of the week, mainly due to 2024’s financial results, dropping more than 16 percentage points during the first hours of trading on Friday, March 7th.
The 2024 report shows a 10.5% revenue decline, already announced in January, a loss of 68 million euros compared to the net profit of 26 million euros recorded in 2023. But that's not all: the report also reveals a double-digit negative decline (-14.5%) in EBITDA – a commonly used measure to assess cash flows in businesses, indicating whether the company is generating positive profits from ordinary operations – and a halving of operating profit from 79 million to 35 million euros.
However, analysts highlight the slight improvement in EBITDA for the second half of 2024, which reached 2 million euros. Additionally, analysts view positively former CEO Marco Gobbetti’s legacy and maintain a neutral rating on the stock.
Currently, analysts do not anticipate any structural changes from the Ferragamo group, especially considering the slight outperformance of the shares over the past year, recording an 11% increase compared to the luxury sector's (+9%), reflecting the slow recovery of margins and renewed enthusiasm for a sector that is reinvigorating.
The 2024 report shows a 10.5% revenue decline, already announced in January, a loss of 68 million euros compared to the net profit of 26 million euros recorded in 2023. But that's not all: the report also reveals a double-digit negative decline (-14.5%) in EBITDA – a commonly used measure to assess cash flows in businesses, indicating whether the company is generating positive profits from ordinary operations – and a halving of operating profit from 79 million to 35 million euros.
However, analysts highlight the slight improvement in EBITDA for the second half of 2024, which reached 2 million euros. Additionally, analysts view positively former CEO Marco Gobbetti’s legacy and maintain a neutral rating on the stock.
Currently, analysts do not anticipate any structural changes from the Ferragamo group, especially considering the slight outperformance of the shares over the past year, recording an 11% increase compared to the luxury sector's (+9%), reflecting the slow recovery of margins and renewed enthusiasm for a sector that is reinvigorating.