Safilo Group (SFL) H1 2025 earnings summary

Executive summary

• Achieved record margins and cash flow in H1 2025, with sales up 2.3% at constant exchange rates, driven by strong performance in North America, Europe, and robust growth in Asia Pacific, offsetting IMEA weakness.

• Strategic milestones included early renewal of the Carolina Herrera license, a ten-year global licensing agreement with Victoria Beckham, and the launch of a share buyback program.

• Growth was led by contemporary and lifestyle brands, with France as a key market and resilience in Europe.

• Operational agility and disciplined working capital management supported profit and margin expansion.

Financial highlights

• H1 2025 net sales: €537.6M (+1.1% year-over-year, +2.3% at constant FX); Q2 2025 net sales: €251.9M (+2.3% at constant FX).

• H1 2025 gross margin: 61.1% (+110 bps year-over-year); Q2 2025 gross margin: 61.6% (+150 bps year-over-year).

• H1 2025 adjusted EBITDA: €62.3M (11.6% margin, +8.1% year-over-year); Q2 2025 adjusted EBITDA: €27.9M (11.1% margin, +9.0% year-over-year).

• H1 2025 adjusted net profit: €33.7M (+39.4% year-over-year); free cash flow: €43.5M, including €11.9M from Lenti S.r.l. disposal.

• Net debt as of June 30, 2025: €42.4M, down 48.7% from December 2024, nearly debt-free pre-IFRS 16.

Outlook and guidance

• Focus remains on operational agility, customer-centric strategies, and financial resilience amid ongoing tariff negotiations and macroeconomic uncertainty.

• Expansion in high-potential markets, product innovation, and marketing investments are strategic priorities.

• Share buyback program to enhance shareholder value, running through December 2025.

• Working capital expected to build in H2 due to delayed inventory imports, but year-end efficiency should improve versus prior year.