The ten-year licensing agreement gives Inter Parfums the exclusive right to manufacture and distribute fragrance for the Italian luxury group, the companies said. It comes into effect in October.

It’s a departure for Ferragamo, which for the last two decades has manufactured all its perfume in-house, but said it sees an opportunity to boost the business. Under the new licensing agreement the company said it has guaranteed production will still take place in Italy.

Inter Parfums announced last month that it was in exclusive negotiations to secure Ferragamo’s fragrance license. The company said the agreement is an opportunity to develop its business in the fashion and luxury segment.

The deal comes as Ferragamo is attempting a wider turnaround. It is one of the few remaining independent luxury brands with international name recognition, but it has struggled in recent years and the pandemic dealt an extra blow to its finances.

Revenue tumbled 33 percent in 2020 to €916 million ($1.1 billion) and the company recorded its first annual loss since going public on the Milan stock exchange in 2011. Creative director Paul Andrew exited in May and a board reshuffle this year fuelled speculation that the Ferragamo family, still the company’s main shareholder, could be open to a sale.

The Italian shoemaker has long been viewed as a potentially attractive target for a luxury group or strategic investor keen to buy into the fast-growing footwear category, though the company has consistently denied the family has any intention of selling.

The company is hoping new leadership will help fuel a rebound alongside the rest of the market. It scored a coup last month, poaching Burberry chief executive Marco Gobbetti, who is due to join next year.

Editor’s Note: This article was revised on 14 July 2021 to include additional context.