Dear Shareholders,

2025 was a particularly challenging year for the luxury sector; ongoing geopolitical tensions and macroeconomic uncertainties negatively impacted consumer confidence and people’s willingness to spend.

This market environment, characterized by a particularly difficult first half of the year, adversely affected the Group’s financial results in terms of both sales and profit.

From the second quarter of 2025, we embarked on a process of rapidly evolving the brand’s positioning, with the aim of ensuring full consistency across design, product range, communication, and distribution—aligned with changing consumer expectations and in keeping with the values of our legacy. This in-depth analysis enabled us to refine our strategic priorities, focusing on our core leather business and translating them into a comprehensive action plan aimed at strengthening consistency across the entire value chain. As regards our core range of footwear for men and women, we have continued to highlight both our most iconic models and our specialist manufacturing techniques, ensuring the ongoing evolution of our entire product portfolio. Our focus has been on maintaining a clear and distinctive offering, promoting the footwear families that best represent our brand in line with the Founder’s innovative spirit: on the one hand, by building on timeless and enduring styles, and on the other, through fresher proposals linked to seasonal collections. In the bag segment, we have further expanded and refined our collection by strengthening and developing products that have already proven highly successful, broadening the range with new styles and paying close attention to detail, with the aim of enhancing their appeal and unlocking their full potential.

We have also intensified our focus on other accessories and silk products to enhance the brand’s image, drive in-store footfall, and strengthen customer engagement, while seizing opportunities for in-store cross-selling. In addition, we have continued—with excellent results—to reinforce the brand’s appeal through key strategic product areas, leveraging the potential of complementary categories to make the in-store offering even more effective and coherent. On the communication front, we have enhanced our storytelling by integrating artificial intelligence technologies to optimize targeting and operational efficiency. Furthermore, we have adopted a digital-first approach across all touchpoints, continuing to evolve our narrative by celebrating the brand’s heritage with a contemporary twist and introducing new tools to broaden our reach and impact.

We have also paid particular attention to optimizing our retail network, enhancing boutiques with curated visual displays and distinctive styling, whilst leveraging data and artificial intelligence technologies to consolidate and deepen customer relationships. Our aim has been to improve store efficiency through a careful review of the network and the enhancement of strategic, high-productivity stores.

We have enhanced our e-commerce platform to ensure a high-quality digital service, recording a solid growth trajectory. In parallel, we have adopted a more selective wholesale approach, focusing on targeted customers in line with the brand’s positioning.

Furthermore, we have continued to refine operational processes, streamlined the organizational structure, and strengthened the managerial capabilities of certain key functions. In a geopolitical and macroeconomic context characterized by volatility, and in light of a selective approach to the wholesale channel, our strategy is focused on consolidating the initial success of the actions undertaken, as confirmed by the solid performance of the DTC channel. Leveraging the value of the brand and our creative resources, we will continue to pursue the corporate vision, ensuring an effective product offering and structural alignment across all commercial and communication channels, with the aim of enhancing the brand’s desirability and sustaining revenues and profitability.

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2025 also proved to be a year of acceleration in our sustainability roadmap, with key targets achieved across all five of its constituent pillars. To cite just a few examples, we have reduced our carbon emissions by over 3% compared with the previous year and significantly increased our use of strategic raw materials sourced from certified supply chains, which now account for 81% of the total by weight. At the same time, we have strengthened our research and development projects, with the aim of further innovating both our products and processes. Our commitment to offering customers products that are not only of excellent quality but also innovative, carefully monitored, and increasingly traceable has taken shape in the Back to Earth capsule collection, which features cotton sourced from entirely Italian supply chains, vegetable-tanned leather, and dyes and prints created using mineral powders, dyeing earths, and vegetable charcoal. Launched on 22 April to mark World Earth Day, this initiative represents a further step on a path increasingly focused on the selection of materials and processes of natural origin. I am particularly proud to see how the concrete nature of our sustainability strategy and the robustness of the ESG indicators through which we measure our progress have been recognized at various levels: from the results achieved in some of the leading international ESG rankings, to the honor of hosting the annual Steering Committee of The Fashion Pact, during which, together with other fashion leaders, we strengthened our collective action to address the significant environmental and social challenges that this sector will face in the coming years.

It is with this awareness, and drawing strength from our values, our authenticity, and our renewed ability to engage with our community of customers and stakeholders, that in 2026 we will continue our transformation journey with absolute determination, committed to turning opportunities into lasting value.

I would like to thank the Board of Directors for their ongoing support, as well as all our partners and valued colleagues around the world for the work they carry out with passion and dedication, and for the meaningful contribution I am sure they will continue to make in 2026.

We look forward to the new financial year with confidence, focus, and passionate determination, aware of the significant opportunities that lie ahead and ready to seize them along a transformation journey that is already clearly mapped out.

Our vision remains clear and ambitious: to create truly authentic luxury that continues to embody the core values of our brand across the globe, by combining timeless craftsmanship with forward-thinking innovation, while always placing the well-being of our people and our customers—wherever they may be—at the heart of everything we do.

Thank you for your trust and for being part of this extraordinary journey.

The Chair
Leonardo Ferragamo