Salvatore Ferragamo Approves New Chairman

MILAN — Salvatore Ferragamo shares were up 2.68 percent to 18.41 euros by mid-afternoon Thursday on the Italian Stock Exchange, following the annual general meeting of the company’s shareholders. The meeting approved the 2020 financial statements and the group’s new board. There were no surprises as the list of board members was deposited last month.

As reported, Ferruccio Ferragamo is stepping down as chairman of the Florence-based luxury company after 15 years, passing the torch to his brother Leonardo.

Ferragamo stated that he was “deeply grateful” to his family for the ongoing support, “thankful to the people who have worked with me and poured their passion and dedication into achieving and consolidating important milestones,” extending “special thanks to all Ferragamo employees for the loyalty and sense of belonging to the company that they have always shown.” In particular, he thanked his mother, the late Wanda Ferragamo, “the true architect of Salvatore Ferragamo’s international success. The example she set and her teachings have been invaluable to me throughout this long journey.”

He will continue to hold the role of chairman of Ferragamo Finanziaria SpA, which controls the Salvatore Ferragamo company with a 54.28 percent stake.

Non-executive chairman Leonardo Ferragamo also acknowledged the role played by his mother, who was chair of the board after his father Salvatore died in 1960 and before Ferruccio. He expressed confidence in the company being able “to continue on this path and develop the immeasurable potential of our brand, even in these particularly challenging times. I will work alongside them and the new generations with all my energy.”

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The meeting also confirmed the appointment of executive vice chairman Michele Norsa and chief executive officer Micaela le Divelec Lemmi.

The list of board members has been whittled down to 10 from 13, and includes two additional Ferragamo members: Angelica Visconti, daughter of the late Fulvia Ferragamo, and sister of Ferruccio, as well as Giacomo, or James, Ferragamo, brand and product and communications director. The meeting set the term of the board’s office at three years, expiring on Dec. 31, 2023.

In addition to Leonardo Ferragamo, Norsa and le Divelec Lemmi, the board includes longtime Ferragamo partner businessman Peter K.C. Woo, who has a 5.99 percent stake through Majestic Honour Ltd.; Umberto Tombari; Patrizia Michela Giangualano; Marinella Soldi, and Anna Zanardi Cappon.

Members of the Ferragamo family have a 10.69 percent stake, and 29.11 percent of shares are free floated.

The general meeting resolved to determine in 500,000 euros the annual gross remuneration due to the entire board of directors.

The board also resolved to set up internal committees and appointed their members: the control and risks committee; the remuneration and appointment committee, and the development plan and strategies committee, which includes Norsa as president, the CEO and Leonardo Ferragamo.

As reported, creative director Paul Andrew will exit the brand in May and Ferragamo’s existing in-house team will be in charge of the creative and design direction of the brand.

The impact of the COVID-19 pandemic hurt Salvatore Ferragamo’s bottom line and revenues in 2020, but the company is seeing improvements, reporting a positive performance of the brand’s stores in the first nine weeks of 2021, topped by solid growth in China and South Korea and an 85.6 percent gain in the digital channel.

In the 12 months ended Dec. 31, revenues fell 33.5 percent to 916 million euros, compared with 1.37 billion euros in 2020. Ferragamo reported a progressive improvement in the second half.

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