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

• Market Cap: €859.03M
• Dividend Yield: 1.83%
• Average Volume (3M): 772.47K
• Price to Earnings (P/E): 112.5
• Beta (1Y): 1.14
• Revenue Growth: -10.48%
• EPS Growth: -360.89%
• Country: IT
• Employees: 3,830
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Retail - Discretionary
• EPS (TTM): -0.10
• Shares Outstanding: 168,790,000
• 10 Day Avg. Volume: 599,167
• 30 Day Avg. Volume: 772,467
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.10
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €6.45
• Price Target Upside: 19.22% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

Salvatore Ferragamo S.p.A. is currently facing significant financial and operational challenges, with negative earnings and declining profitability. Despite some stability in cash flow, the stock is burdened by a bearish technical outlook and poor valuation metrics. The oversold technical indicators and negative P/E ratio are significant concerns. Investors should be cautious, as the company needs substantial improvements in its financial performance to recover.

Positive Factors

Earnings

Ferragamo reported sequentially improving headline organic growth of -4% in 4Q24, driven by better-than-expected retail organic growth (+1% in 4Q24 vs consensus -6%), returning to positive territory after eight consecutive quarters.

North American Market

North America recorded positive organic growth in 4Q24 (+6% organic vs consensus -4%) beating consensus estimates by over 10% thanks to strong trends in the primary DTC channel.

Retail Performance

Retail organic growth accelerated sequentially from -6% in 3Q24 to +1% in 4Q24, thanks to positive double-digit performance of handbags and the positive trends of shoes.

Negative Factors

Leadership and Strategy

Ferragamo continues to navigate a prolonged turnaround, marked by leadership transitions and ongoing efforts to refine its strategic direction.

US Tariffs

Uncertainty surrounding U.S. tariffs and their possible detrimental impact on consumer confidence across the U.S., Europe, and China, weighs on Ferragamo's 2025 outlook.

Wholesale Weakness

The wholesale weakened further in 4Q24 to -19% at c.FX from -13% in 3Q24, in contrast with management commentary in October.

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

Company Description

Salvatore Ferragamo S.p.A. (SFER) is a renowned Italian luxury goods company, known for its high-quality craftsmanship and innovative designs. Established in 1927, the company specializes in the creation, production, and distribution of footwear, leather goods, apparel, silk products, and other accessories for men and women. Operating globally, Ferragamo maintains a strong presence in the fashion industry through its retail and wholesale channels, offering a diverse range of products that blend traditional Italian elegance with modern style.

How the Company Makes Money

Salvatore Ferragamo S.p.A. generates revenue primarily through the sale of its luxury products, which include footwear, leather goods, apparel, and accessories. The company's revenue model is based on a combination of retail and wholesale distribution channels. Retail sales are conducted through a network of directly operated stores (DOS) in key locations worldwide, which provide an immersive brand experience and cater to high-end clientele. Additionally, Ferragamo leverages wholesale partnerships with select department stores and specialized retailers to expand its market reach. The company also benefits from its e-commerce platform, which allows it to tap into the growing online luxury market. Key factors contributing to its earnings include brand prestige, product innovation, strategic global expansion, and an emphasis on maintaining high-quality standards in its offerings.

Salvatore Ferragamo S.p.A. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.04B	1.16B	1.25B	1.14B	915.83M
	Gross Profit
740.01M	839.43M	901.12M	780.94M	565.54M
	EBIT
-49.00M	72.02M	127.94M	143.48M	-34.70M
	EBITDA
88.31M	241.85M	287.84M	299.03M	122.08M
	Net Income Common Stockholders
-68.09M	26.06M	69.61M	78.65M	-71.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
238.19M	304.26M	401.35M	511.80M	328.16M
	Total Assets
1.58B	1.81B	1.72B	1.85B	1.71B
	Total Debt
792.48M	791.17M	604.59M	736.36M	753.91M
	Net Debt
554.29M	522.18M	213.23M	224.57M	426.03M
	Total Liabilities
959.97M	1.09B	944.88M	1.06B	1.00B
	Stockholders Equity
619.09M	721.17M	751.81M	764.31M	693.58M
Cash Flow		Free Cash Flow
109.32M	45.76M	211.21M	331.64M	58.52M
	Operating Cash Flow
170.62M	117.50M	267.07M	376.13M	88.33M
	Investing Cash Flow
-85.85M	-96.97M	-65.86M	-30.89M	-37.39M
	Financing Cash Flow
-111.91M	-150.09M	-323.28M	-160.29M	47.26M

Salvatore Ferragamo S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.41 is below the 20-day moving average (MA) of 5.61, below the 50-day MA of 6.64, and below the 200-day MA of 6.84, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 31.66 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONC	71 Outperform	€14.64B	22.88	18.81%	2.10%	4.18%	4.35%
PRY	62 Neutral	€12.41B	16.47	16.44%	1.56%	10.89%	32.38%
Sector *	60 Neutral	$6.78B	11.63	3.24%	4.20%	2.36%	-21.91%
SFER	47 Neutral	€859.03M	112.46	-10.16%	1.83%	-10.48%	-360.89%