Ferragamo: Sales Trends Remain Weak Toward the Lower End of Peers; Shares Fairly Valued

We are maintaining our fair value estimate for no-moat Ferragamo as the company reported weak first-quarter revenue, on the lower end of peers. Continuing weakness suggests that as a smaller player, Ferragamo is harder hit by the industry slowdown, and the appointment of Maximilian Davis’ collections have so far failed to improve brand appeal two years into his appointment.