Safilo Group’s First-Half Sales Fall 1.9% as It Invests in SPY+ and Serengeti Acquisition

Italian eyewear company Safilo Group reported its consolidated financial results for the first half of 2026 on August 4. Net sales totaled €512 million, representing a decline of 1.9% at constant exchange rates and 4.8% at current exchange rates compared with the same period last year.

In the second quarter, net sales amounted to €239.1 million, down 4.5% at constant exchange rates and 5.1% at current exchange rates. The company attributed the decline to weaker demand in its core markets and a more cautious approach to ordering among customers amid subdued consumer sentiment.

Summary

Weaker Demand Weighs on Sales

Safilo’s first-half performance reflected a resilient start to the year followed by a slowdown in the second quarter. Customers in the company’s core markets became more cautious about placing orders, particularly from late March through April and May. Some improvement was observed in June, supported by a more stable trading environment and gradually strengthening consumer confidence in selected markets.

By product category, sunglasses remained the most affected due to their more discretionary nature. The prescription frames business also experienced a slowdown compared with previous trends.

In Europe, first-half sales totaled €240.5 million, down 0.5% at constant exchange rates. North American sales reached €205.6 million, representing a decline of 0.8% at constant exchange rates. Asia-Pacific recorded a sharper decrease, with sales falling 15.8% at constant exchange rates to €24.9 million, affected by weak market conditions in China and a challenging comparison with the previous year.

At the brand level, Carrera, Smith, Eyewear by David Beckham and Kate Spade maintained solid momentum across key markets and distribution channels. In North America, Marc Jacobs and Carolina Herrera also continued to outperform the broader market.

Angelo Trocchia, chief executive officer of Safilo, commented: “After a resilient start to the year, the second quarter developed within a softer demand environment in our core markets, as lower visibility and subdued consumer sentiment led our customers to adopt a more prudent approach to ordering.

Against this backdrop, we continued to focus on the levers under our control, protecting the quality of our business through disciplined commercial execution, a favourable price/mix and continued cost control. These actions translated into another quarter of solid margin expansion and strong cash generation, allowing us to further reinforce our financial flexibility.”

Tariff Refunds Drive Margin Expansion

Despite the decline in sales, Safilo reported a marked improvement in profitability. Gross profit for the first half increased 4.8% year over year to €344 million, while the gross margin rose by 6.1 percentage points, from 61.1% to 67.2%.

Adjusted EBITDA increased 38.1% to €86 million. The adjusted EBITDA margin expanded by 5.2 percentage points, from 11.6% to 16.8%. Adjusted Group net profit rose 46.7% to €49.4 million.

The improvement was supported significantly by refunds of tariffs previously paid in the United States. Safilo received €22.2 million in refunds, of which €20 million was recognized in its profit and loss statement, mostly as a reduction in the cost of goods sold.

Of the 6.1-percentage-point increase in the first-half gross margin, 3.8 percentage points came from the tariff refunds. Excluding the refunds, the adjusted EBITDA margin was 12.9%, still representing an increase of 1.3 percentage points from the previous year.

Favorable price and product-mix dynamics, positive foreign exchange effects and a reduced impact from tariffs also contributed to the company’s structural margin improvement.

€21.5 Million Deployed Toward SPY+ and Serengeti Acquisition

During the first half, Safilo recorded a cash outflow of €21.5 million related to its acquisition of SPY+ and Serengeti. Its consolidated cash flow statement classified €21.494 million as escrow deposits paid for acquisitions.

The acquisition was formally completed on July 1, following the end of the first-half reporting period on June 30. SPY+ strengthens Safilo’s position in the sports and outdoor segment, while Serengeti expands its presence in high-end eyewear. The company expects the two brands to complement its existing portfolio.

Trocchia said: “In the period, we were able to invest in our strategic priorities, fully funding the acquisition of SPY+ and Serengeti with our own resources. These two brands are highly complementary to our existing portfolio, enhancing our ability to serve the sport segment and high-end eyewear. At the same time, we launched a new share buyback programme in June, as part of a disciplined and efficient capital allocation approach.”

Safilo also invested €5 million in additional shares of Inspecs Group and paid €6.3 million to acquire the remaining 20% stake in Blenders, bringing its ownership of the brand to 100%.

Despite these strategic investments, cash flow from operating activities increased to €78.8 million from €40.7 million a year earlier. Free cash flow totaled €36.4 million, compared with €43.5 million in the first half of 2025.

The company’s net debt declined to €5.4 million as of June 30. Before the application of IFRS 16, Safilo held a positive net financial position of €29.6 million, compared with net debt of €46.1 million at the end of December 2025.

Safilo’s licensed brand portfolio includes BOSS, Carolina Herrera and Marc Jacobs, alongside labels such as Tommy Hilfiger, Victoria Beckham, Isabel Marant and Moschino. As demand remains subdued, the company’s ability to turn its expanded brand portfolio and structural margin improvements into sustainable growth will remain a key focus for the second half of the year.

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