Safilo Group (SFL) H1 2025 earnings summary

Executive summary

• Achieved one of the strongest first-half performances in company history, with H1 2025 net sales of €537.6M, up 2.3% at constant exchange rates and 1.1% at current rates, despite geopolitical and macroeconomic challenges.

• Record-high gross margin (61.1%) and best operating performance in a decade, with adjusted EBITDA up 8.1% to €62.3M and adjusted net profit up 39.4% to €33.7M.

• Strategic milestones included early renewal of the Carolina Herrera license through 2031, a new ten-year global licensing deal with Victoria Beckham, and the launch of a share buyback program.

• Free cash flow for H1 2025 was €43.5M, with net debt halved to €42.4M by end of June.

• Growth was driven by contemporary and lifestyle brands, with strong performance in North America, resilience in Europe, and robust growth in Asia Pacific.

Financial highlights

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

• Gross margin reached 61.1% for H1 2025, up 110 bps year-over-year; Q2 2025 gross margin: 61.6% (+150 bps YoY).

• Adjusted EBITDA: €62.3M (11.6% margin, +8.1% YoY); adjusted operating profit: €43.3M (8.1% margin, +15.3% YoY).

• Adjusted net profit: €33.7M (+39.4% YoY); basic EPS: €0.101 (vs €0.043 in H1 2024).

• Free cash flow: €43.5M (vs -€19.0M in H1 2024); net debt reduced to €42.4M at June 2025.

Outlook and guidance

• H2 outlook depends on tariff developments and sales mix; ambition is to continue margin improvement and operational agility.

• No further price increases planned unless significant tariff changes occur; no negative demand impact seen from recent price actions.

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

• Management sees no significant uncertainties regarding going concern and continues to focus on operational efficiency and brand development.