The departure of creative director Paul Andrew, expected to come in the next few weeks (though unconfirmed, as of now), is the last chapter in the Ferragamo company shakeup. The stylist had entered Ferragamo in 2016 as creative director for the women shoes department. In 2019 he was promoted to head of the design office for all categories. Business of Fashion, which first launched the departure story, believes that Andrew will not be substituted.
Ferragamo company shakup
He Ferragamo company shakeup started on May 28th 2020, when Ferruccio transferred his executive powers to Michele Norsa. The manager thus became an executive VP within the company of which he was CEO from 2006 to 2016. In Spring of 2020 some rumors started popping up, regarding the wish of the family to sell the brand. Rumors that were always denied by the interested parties. The same Mr. Norsa was at the center of rumors, in January 2021, as he was allegedly leaving the company, along with the CEO Micaela Le Divelec Lemmi. Indiscretions that are, at least as of now, just that.
Donald Kohler, CEO of the Americas BU and Chief Retail officer recently left Ferragamo. While on March 30th it was announced that Ferruccio Ferragamo was laving his post in favor of his brother Leonardo. Giacomo “James” Ferragamo, whom Mr. Andrew has to thank for hiring him and whom supervises products, will return to the BoD after having left last year. Giovanna, one of the daughters of founder Salvatore Ferragamo will free the spot for him.
Why is Ferragamo not working? According to Business of Fashion, the family didn’t always agree on the strategy to follow. That made it difficult to both find a path to follow and caused delays in the implementation of much needed changes. That’s why the brand finds itself in a disadvantageous position on a market that requires speed and flexibility.
The latest strategies
The luxury brand implemented a number of strategies to try to recover (also) from a difficult 2020: during which it lost 33% of its revenue due to Covid-19. For example, the most recent one we mention is the entry in gaming, with Enigma. It seems to have focused on the digital field, with a publication on its online archive. And more: the involvement of young creatives in some special projects during 2021, along with the customization service for men’s footwear thanks to Microsoft Hevolus. Other investments worth mentioning include the war against counterfeiting in the USA with Amazon. And last but not least, the 250 million euro loan obtained from Intesa San Paolo thanks to a Green-focused project and the acquisition of Arts and Aura 1.