LETTER FROM THE CHAIRMAN
We will always remember 2020 for the personal and professional challenges it posed, but also for the solidarity, determination, resilience, and courage of many.
The health emergency has changed the world and, as a result, also Companies and how these approach their business. The Covid-19 emergency and the lockdowns imposed in several geographies during the first half of the year significantly affected the Group’s business, causing a contraction in both revenues and margins.
The industry we operate in was forced to rethink schedules and priorities.
This was an overdue and useful exercise: for Salvatore Ferragamo, it made us even more aware that we must make a fresh start by putting sustainability at the center of our strategy.
We have reimagined our way of working, putting the health of our staff first and striving to ensure everyone can work safely. Technology has allowed us to continue meeting, and the Ferrragamo teams have showed great dedication and willingness. I am grateful to our people for the passion and sense of belonging to the brand that they have showed even at the most challenging times.
As the health emergency swept over us, we took action to support associations and healthcare entities in the fight against the pandemic. Among other projects, we helped the Italian Red Cross with the renovation of Florence’s Fraticini Hospital, and supported the Tuscany Region by donating 50,000 units of hand sanitizer and pledging to manufacture and donate over 100,000 masks through our contract manufacturers.
That said, the pandemic did not sway us from our commitments.
We continued our partnership with the Meyer Foundation, supporting newborn screening activities and the planned expansion of the Children’s Hospital in Florence. At such a particular and challenging historical moment, we made a point of supporting the young and research efforts, which are key to a fresh start.
In 2020, in line with the commitments of the Fashion Pact, we were the first Italian luxury company to set Science-based Targets to reduce our direct and indirect CO2 emissions by 42% by 2029. This commitment makes us proud: a heartfelt thanks to all the teams that worked together to define the targets and dedicate themselves every day to achieving them.
Our history has taught us that at challenging times, we can find solutions in creativity and innovation: this vision has guided us also during this year as we discovered alternative, regenerated and circular materials for our collections. From organic silk to regenerated nylon yarns, from recycled post-consumer cashmere to certified leather, we are combining creativity and experimentation with the same enthusiasm that colored my father’s work.
The experience of our supply chain, comprised of world-class artisans, has allowed us to continue providing our customers with products that are the pinnacle of Italian quality, beauty, and comfort. And we want to start again from our products.
Before the pandemic, our company had been working to consolidate its positioning, investing to bolster its digital presence, optimize physical stores, and communicate in a way consistent with the values that have always defined us. The pandemic has reinforced our vision, and we continue on this journey by focusing on the long-term strategy: we believe the key to the recovery is continuing to believe in ideas, commitment, and creativity, without ever forgetting our history and heritage.
The main lesson we have learned is that the power of collaboration allows to grow and innovate, always responding positively to change.
Ferruccio Ferragamo, Chairman