Ferrari Shares Dip As Luxury-Car Maker's Sales Underwhelm
The shares fell as much as 6.9% in Milan, having rallied in the past two weeks. The stock is roughly flat for this year.

Ferrari NV dampened investor hopes of an imminent boost to its outlook, as demand for its luxury cars underwhelmed in the second quarter.
Revenue rose 4% in the period from a year earlier — slightly less than analysts expected — as shipments remained flat. Rather than raising guidance, Ferrari said it’s more confident in its full-year outlook after the recent US-European Union trade deal lowered duties on imported cars in the American market.
The shares fell as much as 6.9% in Milan, having rallied in the past two weeks. The stock is roughly flat for this year.
Analysts at Jefferies said second-quarter revenue came in “a bit shy,” though profit was a touch higher than expected. Before the earnings were released, RBC analysts said a very strong set of results could lay the groundwork for Ferrari to lift guidance imminently.
Ferrari has largely avoided the fate of rivals such as Porsche AG, which cut guidance this week in response to US President Donald Trump’s trade war. Investors are banking on the Italian company’s ability to pass on any additional costs to wealthy customers due to the allure of the storied brand. Ferrari said it’s expecting reduced industrial costs in the second half.
The US and European Union agreed on Sunday to cut the tariff rate on vehicles imported from the bloc to 15%. That’d be much lower than the earlier 27.5% duty but far higher than the 2.5% levy in place before Trump’s new trade policies.
Ferrari makes all its vehicles in Italy, meaning it can’t offset the higher costs by moving production to the US, its largest market that accounts for around a quarter of its deliveries. But the company still has a big order book and few cancellations, underscoring its ability to price higher than the competition.
To keep its near-40% gross profit margin, Chief Executive Officer Benedetto Vigna will have to prove he can pass on most of that cost to US customers without diluting the up to two-year waiting list. The company in March said it planned to raise prices for some models in the US by as much as 10% to deal with the duties.
Lamborghini, Ferrari’s Audi-owned rival, reported record first-half deliveries on Wednesday, lifted by robust demand for plug-in hybrid models, though profit slipped 6% in the period. Ferrari will unveil its first fully electric vehicle in October.