Shares in Salvatore Ferragamo tumbled over 16% on Friday after the Italian luxury group reported a 5.5% drop in first-quarter revenue to €208.97 million, dragged down by weakness in China.
The company said China's direct-to-consumer channel turned negative in Q1 and deteriorated sequentially from the fourth quarter of 2025.
North America was the standout region with net sales up 18.8% at constant exchange rates. Europe was the weakest region, down 17% at constant exchange rates due to high wholesale exposure and lower tourist flows.
By product, leather goods declined 5.8% at constant exchange rates, while footwear rose 2.7%.
On a call with analysts, the company noted that China remains the main pain point, with recovery expected in the second half of the year but not yet visible.
