The Ferragamo family announced Tuesday their plans to sell a 3.5 percent stake in the eponymous luxury group, Salvatore Ferragamo Spa, Reuters reports. The firm’s shares tumbled sharply on the news — closing the day down more than 8 percent to 22.46 euros.
The family — which owns a 58 percent stake through holding company Ferragamo Finanziaria — sold the small stake through an accelerated book building, according to Reuters. (In total, the Ferragamos reportedly control a stake of nearly 70 percent.)
The sale comes at a time when the company — which has previously been anti-sale for some time — has experienced a spell of lackluster earnings.
When it reported financial results in May, it posted both sales and profit declines for the three months ended March 31.
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Ferragamo’s net profit, including minority interest, decreased 18.8 percent to 9 million euros, or $10.2 million at current exchange, compared with 11 million euros in the same period in 2017.
Revenues had decreased 1.7 percent to 304 million euros, compared with 309 million euros in the same period last year.
Goldman Sachs was the sole book-runner in the ABB operation, which is aimed at institutional investors, Reuters reported.
Perhaps a sign of the times, several privately-held and family-owned luxury players have recently sold off minority and majority stakes in their firms. Just this month, Dries Von Noten sold a majority stake in his namesake label to Barcelona-based fashion and fragrance firm Puig. Also this month, Italian family Missoni sold a 41.2 percent stake in their eponymous fashion business to private equity group FSI.