Salvatore Ferragamo SpA

SFER: XMIL (ITA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€6.20	Srmn	Kbnjylf

Ferragamo Earnings: Surprising Sequential Improvement in Sales Trends, but Profits Under Pressure

Jelena Sokolova

Aug 2, 2024

We are reducing our fair value estimate for no-moat Ferragamo to EUR 9.60 from EUR 10.60 to incorporate near-term pressure on revenue and margin driven by the luxury industry downturn, exacerbated by Ferragamo’s weaker position and lack of scale compared with peers. Ferragamo also underperformed the sector in prior downturns during 2009 and 2020. Still, we believe that shares look somewhat undervalued at current levels.

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