Ferragamo CFO exit ups execution risk as brand reset targets 2025-26
Bottom Line Impact
Absent rapid leadership stabilization and cash discipline, revenue and margin trajectories risk further pressure in 2024-25, ceding share to faster-executing peers; decisive governance and focused hero-product execution can restore brand equity and set up margin recovery into 2026.
Key Facts
5- CFO Pierre La Tour departs effective 26 Sep after ~18 months in role
- Paolo La Morgia, Planning and Control Director, named interim CFO
- CEO Marco Gobbetti left in March; permanent CEO search ongoing
- Company launched a focused action plan to streamline product and exit underperforming segments
- Management guides that transformation impact will be more visible from late 2025 into 2026
Time Horizons
Key Roles Affected
Executive Summary
Ferragamo faces a critical leadership gap as the CFO departs after 18 months, with an interim finance head appointed amid a multi-year brand repositioning. Execution discipline, cash control, and milestone clarity over the next 90 days will determine investor confidence and the pace of the turnaround expected to show results from late 2025 into 2026.
Actionable Insights
Immediate Actions (Next 30-90 days)
Appoint a permanent CFO within 90 days and formalize an Office of Transformation co-led by finance and merchandising with weekly milestone tracking
Rationale: A stable finance leader and PMO reduce execution drift and signal control to investors during the brand reset
Role affected:Chair/Board
Urgency level:immediate
Launch a 60-day cash and working capital war room targeting 10-15% inventory reduction by Q2 2025 and 50-100 bps SG&A savings via discretionary spend controls
Rationale: Liquidity headroom and cleaner inventory are prerequisites to fund creative and retail investments without sacrificing margins
Role affected:Interim CFO
Urgency level:immediate
Short-term Actions (6-12 months)
Rationalize SKUs by 20-30% for AW25 line freeze and concentrate marketing on 3-5 hero franchises with clear price ladders
Rationale: Sharpened assortment and storytelling improve full-price sell-through and cut markdown dependence ahead of 2025-26
Role affected:CMO/Chief Merchandising Officer
Urgency level:short-term
Strategic Actions
Shift channel mix to raise DTC by 200-300 bps in 2025 by pruning underperforming wholesale doors and upgrading top 50 stores
Rationale: Higher DTC penetration supports margin recovery and tighter brand control during repositioning
Role affected:Head of DTC/COO
Urgency level:strategic
Risks & Opportunities
Primary Risks
- Execution slippage on transformation milestones due to leadership gaps
- Wholesale order softness for SS25 and AW25 amid cautious guidance
- Talent attrition in finance and merchandising during transition
Primary Opportunities
- Portfolio simplification and channel pruning could add 100-200 bps to gross margin by 2026
- Stronger creative focus and hero products can rebuild brand heat and pricing power
- Finance process overhaul to modernize planning, reduce close cycles, and improve forecasting accuracy