Shares In Salvatore Ferragamo Rise Amidst Death Of Matriarch

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The death of the widow of Salvatore Ferragamo has sent the shares in his eponymous company soaring amid the speculations that her successors will likely sell their stake in the shoe business.

The shares closed up by more than seven percent during late afternoon today.

The value of the company peaked in 2015 and has been on a downward trajectory ever since May of last year.

The matriarch of the Florentine shoemaker, Wanda Ferragamo, died at the age of 96 last Friday.

She was widowed 58 years ago. She took over the shoemaking business of her husband which she then grew into an international brand.

The firm was listed on the Milan exchange in 2011, however, Wanda Ferragamo kept 19.5 percent of the voting rights, while another 15 percent must be re-allocated after Fulvia, her daughter, died earlier this year.

A Jeffries analyst, Flavio Cereda, stated: “We believe she ranks alongside the greatest female entrepreneurs in Italian fashion, alongside the Fendi and Fontana sisters, Mariuccia Mandelli, more recently Miuccia Prada, and of course, the original businesswoman, Luisa Spagnoli.”

Cereda continued: “Italian bureaucracy sets the timing, but clearly there will be a greater concentration of control in the hands of fewer members in the family, some of whom have been sellers in the recent past.”

He added: “Whilst we still see M&A as a medium-term option, the shareholder changes will focus minds on possible developments here.”

Jeffries said that it is expecting that the family will give Micaela LeDivelec Lemmi, the new chief executive of the company, enough time to turn the business around.

Lemmi was appointed last July. Cereda said that she is facing “a big ask, but not entirely impossible” if she is to get the business back on the right path.

Salvatore Ferragamo was established in the 1920s Florence, making and selling ladies footwear.

The firm started expanding beyond Italy after the Second World War.