Despite currency headwinds, the Italian eyewear group strengthened its portfolio, improved margins, and delivered solid cash generation in the first quarter.Despite currency headwinds, the Italian eyewear group strengthened its portfolio, improved margins, and delivered solid cash generation in the first quarter.
MILAN — Safilo Group showed resilience in the first quarter in North America and Europe, improving margins and cash generation in the period despite being impacted by currency headwinds.
During a conference call with analysts and the press on Thursday at the end of trading, chief executive officer Angelo Trocchia touted the resilience of the Italian eyewear group’s business model, and its “solid brand portfolio and effective commercial execution.”
He fielded several questions about the recent acquisitions, underscoring how these allow to “selectively grow” Safilo’s portfolio and leverage synergies.
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In February,Safilo revealed the purchase of additional shares in Inspecs Group plc representing around 5 percent of the company’s share capital, increasing its stake to 29.99 percent, and on April 21, it revealed the signing of an exclusivity agreement with Bollé Brands aimed at the acquisition of Spy+ and Serengeti.
The former “sits between Smith and Blenders and further builds our sports portfolio,” while the latter will lead Safilo to further expand into the premium and high-end range, Trocchia explained. “Both fit with our strategic direction.”
Chief financial officer Michele Melotti said the acquisitions will be “accretive at the bottom line and fully compatible at the EBITDA [adjusted earnings before interest, taxes, depreciation and amortization]level.”
Trocchia also said the start of the year saw a very promising launch of the new Victoria Beckham eyewear collection, an agreement inked last year that “underscores the continued evolution of our portfolio and its ability to reach ever‐new consumer segments,” and offset the impact of the deconsolidation of the Lenti business.
In the first quarter ended March 31, Safilo’s sales declined 4.5 percent to 272.9 million euros compared with 285.8 million euros in the same period last year. The decrease mainly reflected the depreciation of the U.S. dollar against the euro. At constant exchange rates, revenues inched up 0.4 percent.
Adjusted earnings before interest, taxes, depreciation and amortization amounted to 37.1 million euros, improved by 160 basis points, to 13.6 percent from 12 percent, reflecting the expansion at the gross margin level and an effective cost management. The adjusted figure excluded nonrecurring costs of 2.9 million euros due to special projects and some restructuring expenses.
The quarter also marked another strong performance in terms of cash generation, with a free cash flow of 12.6 million euros, after the purchase of additional shares in Inspecs Group for about 5 million euros.
“We delivered another quarter of strong margin expansion and solid cash generation, thanks to the structural improvements achieved across the group’s operations over recent years,” said Trocchia. “Against a backdrop of continued uncertainty and limited visibility, we remain firmly focused on strengthening our results through disciplined execution of our strategic priorities.”
In Europe, sales edged up 0.8 percent to 129.9 million euros. At constant currency they rose 1.4 percent. France, Italy and Germany delivered solid trends in both independent opticians and key accounts. Safilo also continued to strengthen its positioning in Eastern Europe.
In North America, sales fell 7.7 percent to 109.7 million euros, reflecting the depreciation of the average dollar-euro exchange rate by about 11 percent. At constant currency sales were up 2.3 percent. Trocchia said eyewear brands Kate Spade, Carrera, Tommy Hilfiger, Boss, Marc Jacobs and David Beckham confirmed the high‐single to double-digit growth trajectories achieved throughout 2025.
In the sport channel, Smith remained solid while Blenders’ performance improved, thanks to the ongoing development of its wholesale business and a gradual recovery in its direct‐to‐consumer channel. Trocchia said that the strategy to sell through three channels — DTC, wholesale and online — “is showing clear signs that it is right.”
In Asia-Pacific, sales tumbled 18 percent to 11.8 million euros, reflecting a challenging comparison base with the first quarter of 2025, combined with the continuation of a more prudent demand observed in the fourth quarter of last year. At constant exchange rates, sales were down 13.6 percent.
Sales in China were affected by the timing of the Chinese New Year, with a positive January ahead of the holiday period, followed by a weak February and a partial recovery in March, with “struggling distributors cautious and conservative on buying.”
In the Rest of the World, sales decreased 9.1 percent to 21.5 million euros. At constant currency sales were down 6.3 percent. Trocchia and Melotti said the performance in this area was mainly impacted by weaker trends in the Middle East, as a consequence of the war starting from March. The Middle East only represents 2 percent of sales, Trocchia clarified.
Australia on the other end performed strongly as did Mexico, driven by key licensed brands such as Carolina Herrera, Tommy Hilfiger and Boss.
As of March 31, the group’s net debt decreased to 30.1 million euros, compared to 46.1 million euros at the end of December 2025.
