(PRESS RELEASE) PADUA — The Board of Directors of Safilo Group S.p.A. has reviewed and approved the economic and financial results of the first half of 2025.
Angelo Trocchia, Safilo Chief Executive Officer, commented:
“Throughout the second quarter we continued to demonstrate our ability to adapt to the layers of uncertainty created by geopolitical tensions and evolving macroeconomic pressures.
Our sales rose by 2.3% at constant exchange rates, supported by the continued recovery of the business in North America, and the resilience of the European market.
France confirmed its position as one of our leading markets, driven by solid demand for prescription frames and sunglasses across independent opticians and retail chains, and further boosted by our in-store communication initiatives.
In all our regions, momentum continued to be strong for our contemporary and lifestyle brands, with Carrera, David Beckham, Tommy Hilfiger, BOSS, Carolina Herrera and Marc Jacobs standing out also in the second quarter.
From an economic standpoint, we delivered another quarter of significant margin expansion, also supported by a series of effective measures designed to mitigate the negative impact of U.S. tariffs. We closed the first half of the year with a gross margin of 61.1%, meeting our goal of converting much of this improvement into a solid operating performance. The adjusted EBITDA margin reached 11.6% of sales, the highest level in the past ten years.
This economic delivery, together with disciplined working capital management, finally drove a strong cash generation and further reduction of our net debt.
We closed the semester also making meaningful progress on our strategic agenda, with the renewal of Carolina Herrera for the next five years, and the launch of the share buyback program, underscoring our commitment to efficient financial management and shareholder value creation.
Most recently, the addition of Victoria Beckham to our portfolio marked another important achievement, further enhancing our women’s offering and strengthening our positioning in the aspirational, entry-to-luxury segment.
As we navigate a highly uncertain landscape, marked by still evolving tariff negotiations, we remain focused on building lasting value through operational agility, financial resilience, and an unwavering commitment to our customers worldwide.”
NET SALES PERFORMANCE
In Q2 2025, Safilo’s net sales totalled Euro 251.9 million, up 2.3% at constant exchange rates but down 1.1% at current exchange rates, mainly due to the approximately 5% weakening of the US dollar against the Euro. Consistent with Q1, sales performance at constant currencies was positive across most of the Group’s core brands, driven once again by the double-digit growth of David Beckham, BOSS, Tommy Hilfiger and Marc
Jacobs, while Carrera and Carolina Herrera recorded high-single-digit increases. Across product categories, the second quarter was underpinned by solid demand for prescription frames in all key markets, helping to offset the softer performance of sunglasses, influenced by more prudent consumer spending and continued promotional pressures, especially in the United States.
Safilo closed the first half of 2025 with net sales of Euro 537.6 million, up 2.3% at constant exchange rates and 1.1% at current exchange rates compared to Euro 532.0 million in the first half of 2024. In the semester, sales in the core wholesale channels, namely independent opticians and retail chains, recorded a solid high single digits growth.
The online business was moderately positive in the period, remaining stable at 16% of revenues. Solid growth in Smith’s direct-to-consumer channel and continued strong sales to internet pure players offset the subdued performance of Blenders’ e-commerce business.
Q2 and H1 sales by geographic area confirmed positive trends in North America, Europe and Asia-Pacific, while the Rest of the World region remained in negative territory.
In North America, Q2 2025 sales amounted to Euro 102.1 million, up 4.8% at constant exchange rates but down 1.1% at current exchange rates due to the approximately 5% weakening of the US dollar against the Euro. In the second quarter, the US market continued its recovery, driven by strong momentum in the Group’s contemporary and lifestyle brands across core wholesale channels. The positive performance was led by the double-digit growth in Carrera, David Beckham, BOSS, Marc Jacobs and Carolina Herrera’s collections, which significantly boosted prescription frame sales and helped sustain the sunglasses category in a challenging market environment. In the direct-to-consumer channel, while Blenders continued to be impacted by promotion-driven demand in the entry-level price segment, its performance showed an improvement compared to the first quarter.
In the sports channel, Smith’s sales were held back by the Group’s strategic decision to temporarily limit imports of new winter items from China. This move, influenced by tariff announcements resulted in the deferral of some deliveries to the second half of the year.
In the first half of 2025, sales in North America totalled Euro 220.9 million, up 2.8% at constant exchange rates and 1.5% at current exchange rates compared to Euro 217.6 million in H1 2024. This positive performance was driven by Smith’s high single-digit growth across its core channels and product categories, alongside solid contributions from the Group’s leading eyewear brands in wholesale distribution.
In Europe, Q2 2025 sales amounted to Euro 114.2 million, up 0.5% at constant exchange rates and 0.4% at current exchange rates. Sunglasses sales remained broadly stable, with the growth of the business through internet pure players, offsetting a more subdued and volatile performance in physical stores, particularly in Italy and Spain. Prescription frames posted low single-digit growth, fuelled by the increasing adoption of the You&Safilo BtB platform among independent opticians and retail chains.
In the second quarter, France confirmed its role as the region’s main growth driver, underpinned by a favorable business environment. Northern and Eastern European markets also continued to show solid momentum, supported by the Group’s key home and licensed brands.
Sales performance in Europe was also marginally impacted by the deconsolidation effect from the disposal of the subsidiary Lenti S.r.l. in June 2025.
In the first half of 2025, sales in Europe totalled Euro 243.1 million, up 1.7% at constant exchange rates and current exchange rates compared to Euro 239.1 million in H1 2024. The performance was underpinned by double-digit increases for David Beckham, Tommy Hilfiger, BOSS and Marc Jacobs, with solid results across both prescription frames and sunglasses collections. The semester in Europe closed with high single-digit growth for Carrera, while Polaroid recorded low single-digit growth.
In Asia and Pacific, Q2 2025 sales amounted to Euro 15.7 million, up 11.5% at constant exchange rates and 8.2% at current exchange rates. Momentum in the region remained healthy, especially in China and across distributor-led markets, which continued to show solid demand and engagement across the portfolio.
In the first half of 2025, sales in Asia and Pacific totalled Euro 30.2 million, up 14.7% at constant exchange rates and 14.1% at current exchange rates compared to Euro 26.4 million in H1 2024.
In the Rest of the World, Q2 2025 sales amounted to Euro 19.8 million, down 5.2% at constant exchange rates and 14.9% at current exchange rates. The region’s performance was mainly affected by the slowdown in business with Middle Eastern distributors, in a market environment made challenging by political tensions. In contrast, Q2 sales grew in Latin America, driven by a positive recovery of the business in Mexico.
In the first half of 2025, sales in the Rest of the World totalled Euro 43.5 million, down 3.8% at constant exchange rates and 10.8% at current exchange rates compared to Euro 48.8 million in H1 2024.
ECONOMIC PERFORMANCE
In the second quarter of 2025, Safilo continued its upward economic trajectory, marked by further improvement in profits and margins.
The Group achieved a significant improvement in gross margin, mitigating the adverse impact of US tariffs by maximising the use of existing inventory to serve the region, alongside selective price adjustments and supplier negotiations. During the quarter, gross margin also benefited from a favourable price/mix effect, as well as from a positive foreign exchange impact.
While continuing to invest in marketing activities to support the development of its home brands, the Group was also able to convert a significant portion of its gross margin improvement into stronger operating performance.
In the second quarter of 2025, the Group’s EBITDA included a gain of Euro 9.7 million from the disposal of the subsidiary Lenti S.r.l., which, together with other non-recurring items, is excluded from the adjusted results.
In Q2 2025:
- gross profit totalled Euro 155.3 million, growing by 1.5% compared to Q2 2024. Gross margin increased by 150 basis points, from 60.1% to 61.6%.
- adjusted EBITDA grew to Euro 27.9 million, up 9.0% compared to Q2 2024, with the adjusted1 EBITDA margin equalling 11.1%, up 100 basis points compared to 10.1% in Q2 2024.
In the first half of 2025, Safilo achieved a record-high gross margin and its strongest operating performance in the past ten years, resulting in a substantial increase in net profit.
In the first half of 2025, Safilo’s operating performance included a gain of Euro 9.7 million from the disposal of the subsidiary Lenti S.r.l., which, together with other non-recurring items, is excluded from the adjusted results.
In H1 2025:
- Gross profit amounted to Euro 328.2 million, growing by 2.8% compared to the gross profit recorded in H1 2024, while the gross margin reached 61.1%, improving by 110 basis points compared to the 60.0% achieved in H1 2024.
- Selling, marketing, general and administrative expenses rose slightly, by around 1%, also due to an increase in marketing investments to support the development of the Group’s home brands. Despite this increase, the incidence of SG&A expenses on sales remained stable, supported by more favourable operating leverage.
- Adjusted EBITDA amounted to Euro 62.3 million, up 8.1% compared to H1 2024. The adjusted1 EBITDA margin improved by 80 basis points, from 10.8% to 11.6% of sales.
- Adjusted operating profit totalled Euro 43.3 million, up 15.3% compared to H1 2024, also benefitting from a reduction in amortization and depreciation. The adjusted1 operating margin improved by 100 basis points, from 7.1% to 8.1% of sales.
- Adjusted Group net profit amounted to Euro 33.7 million, up 39.4% compared to Euro 24.2 million recorded in H1 2024. The strong improvement in net profit was primarily driven by the Group’s improved operating performance. This was further supported by lower net financial charges – which declined from Euro 6.9 million to Euro 2.9 million, reflecting a lower average Group net debt and positive net exchange rate differences – as well as by a higher gain related to the devaluation of the option liability on minority interests.
FREE CASH FLOW
Safilo closed the second quarter of 2025 with strong Free Cash Flow of Euro 29.1 million, bringing total cash generation for the first half of the year to Euro 43.5 million.
In the first half of 2025, cash flow from operating activities reached Euro 40.7 million, marking a significant increase compared to Euro 27.3 million in the same period of 2024. This improvement reflected both solid economic performance and effective working capital management, mainly driven by tight control over stock levels. The latter was further supported by the Group’s strategic decision in the second quarter to limit imports from China.
Cash flow for investing activities equalled a positive amount of Euro 8.4 million, driven by the disposal of the subsidiary Lenti S.r.l. for total net proceeds of Euro 11.9 million. This compared to the cash outflow of Euro 41.1 million recorded in the first half of 2024, which was mainly explained by the investment made by the Group for the perpetual license of the Eyewear by David Beckham brand.
GROUP’S NET DEBT
As of June 30, 2025, the Group’s net debt halved to Euro 42.4 million (Euro 0.7 million pre-IFRS 16), compared to Euro 82.7 million (Euro 40.3 million pre IFRS-16) at the end of December 2024.
SHARE PURCHASE PROGRAMME
Based on the Share Purchase Programme launched on June 24, 2025 and started on June 25, 2025, as of June 30, 2025 Safilo S.p.A. had purchased around 438 thousand Safilo Group ordinary shares, equal to approximately 0.11% of the outstanding shares, for a total transaction amount of Euro 0.4 million. As of July 25, 2025, Safilo S.p.A. had purchased, since the launch of the Programme, a total number of 2,540,827 of Safilo Group ordinary shares. Taking into consideration the shares already owned, at the above date, Safilo S.p.A. held a total number of 13,540,827 of Safilo Group ordinary shares, equal to approximately 3.27% of the outstanding shares.
2025 TOP BUSINESS NEWS
- On January 14, 2025 Safilo and Under Armour announce the renewal of their global eyewear licensing agreement.
- On February 6, 2025 Safilo and Dsquared2 announce the early renewal of their global multi-year licensing agreement for eyewear.
- On March 10, 2025 Safilo and Special Olympics renew long-standing partnership through to 2027.
- On May 29, 2025 Safilo announces the renewal of the supply agreement with Kering Eyewear until 2029.
- On June 10, 2025 Safilo communicates the disposal of the subsidiary Lenti S.r.l.
- On June 23, 2025 Safilo and Carolina Herrera announce the renewal of their global multi-year eyewear licensing agreement
- On June 24, 2025 Safilo announces the launch of Safilo Group S.p.A. shares purchase programme
- On July 1, 2025 Safilo and Victoria Beckham announce a ten-year global licensing agreement for eyewear collections
link