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Investing.com -- Shares of Salvatore Ferragamo (BIT:SFER) fell by 4% on Tuesday following the announcement that CEO Marco Gobbetti will be stepping down from his role on March 6.
The Italian luxury brand, which has struggled to regain momentum in recent years, saw its stock react to the leadership change amid investor concerns over the company’s future direction.
Gobbetti, who took the helm in early 2022 after a tenure at Burberry (LON:BRBY), was tasked with revitalizing Ferragamo’s positioning in the competitive luxury sector.
His strategy included bringing in British designer Maximilian Davis and focusing on modernizing the brand’s footwear and handbag offerings.
However, these efforts did not translate into commercial gains, with Ferragamo underperforming relative to industry peers. The company’s sales entered negative territory in late 2022 and have yet to recover.
Analysts at Barclays (LON:BARC) suggested that while Gobbetti’s departure may initially be perceived as a setback, it could also be viewed as a necessary shift for the company.
The market had shown little confidence in the CEO’s turnaround plan, and Ferragamo’s struggles have been compounded by broader challenges in the luxury sector.
While some signs of improvement were noted, particularly in the brand’s direct-to-consumer sales channel, Barclays maintained a cautious outlook, rating the stock as ‘underweight’ and setting a price target of €5.70, much below the current trading level of €7.65.
The company has yet to announce a successor, with Chairman Leonardo Ferragamo temporarily taking on executive responsibilities.