SALVATORE FERRAGAMO : 1Q26: +5.5% DTC (c+7% LFL) and not slowing in 2Q so far

研报英文原文证据摘录

SALVATORE FERRAGAMO : 1Q26: +5.5% DTC (c+7% LFL) and not slowing in 2Q so far

nge rate can have a strong impact on the

sector (SF is one of the most affected stocks), owing to the concentration of costs in the

EUR area and a geographically diversified top line. From a stock-specific standpoint,

failure to attract a strong new CEO able to stage a turnaround is a downside risk.

Salvatore Ferragamo ADR (Outperform, Target Price USD5.5)

Investment case

At least until the Board appoints a new CEO, Ferragamo's strategy of brand elevation

is confirmed. We are encouraged by the quality of retail OSG recovery in recent

quarters, turning positive in 3Q25 with strong DDs growth in Online since 2024.

Storytelling around the brand's cinematic heritage and communication on touchpoints

seems improved. Better assortments/displays/windows could also help retail store

productivity recovery. Full price stores outperforming outlets and increased recruitment

(enhanced clienteling), average ticket and conversion rates despite lower traffic are all

encouraging signs. With OSG likely to remain in positive territories in 2026, we are

gaining confidence in the margin rebuild after three tough years. For recovery stories

such as Ferragamo, we typically focus on EV/sales valuation multiple, which remains

below historical average. M&A remains an upside risk.

Valuation methodology

We value Ferragamo ADR using our DCF-derived TP. We use an ADR parity of 2, and

EUR/USD at 1.16.

Risks

To the upside:

M&A newsflow can have a particular impact on soft luxury Mid-Caps (like Ferragamo),

which are seen as potential targets. Ferragamo is a potential self-help story. Margin

BNP Paribas Research Salvatore Ferragamo / Salvatore Ferragamo Adr 14 MAY 2026 page 3