Safilo Group S.p.A. (Group), the Padua, Italy-based parent of Smith Optics and Blenders, and licensee of a range of fashion brands, reported that a preliminary review of the company’s 2025 performance found sales of €983.4 million for the full year, up 1.8 percent at constant exchange rates, with positive performances in both North America and Europe.

At current exchange rates, Safilo Group’s sales declined by 1 percent for the year, due to the progressive weakening of the U.S. dollar against the EU euro.

The company said Smith’s sports products’ leadership in the U.S., together with the continued strengthening of the contemporary and lifestyle portfolio, were the main drivers of growth for the year. Carrera, David Beckham, Tommy Hilfiger, Marc Jacobs, BOSS, Kate Spade, and Carolina Herrera all played a significant role in growing the Group across its key markets and strategic distribution channels.

Full Year Summary
Full-year 2025 sales at constant exchange rates increased 1.8 percent (+2.6 percent at current rates) in North America. Europe increased 2.7 percent at constant rates and rose 2.3 percent at current exchange rates. The year was also said to be positive in the Asia Pacific region, up 4.8 percent (+1.3 percent at current rates), while sales in the Rest of the World ended 2025 down 4.5 percent (-10.0 percent at current rates).

In 2025, the mitigation actions implemented to counter significant tariff pressures, in particular the price adjustments in North America and the progressive shift in sourcing away from China, were said to have combined with favorable price/mix dynamics, enabling Safilo Group to deliver continued margin improvement and strong cash generation.

The Group closed 2025 with a gross margin of 60.9 percent, 120 basis points above 2024.

EBITDA margin reached 10.8 percent for the full-year 2025, up 280 basis points versus 2024. The full-year 2025 Adjusted EBITDA margin reached 10.6 percent of sales, up 120 basis points versus 2024. In 2025, the Adjusted EBITDA margin excludes non-recurring items, equal to a net income of €2.2 million, due to the €9.7 million gain from the disposal of Lenti S.r.l., and to restructuring and special project costs for €7.5 million. In 2024, the Adjusted EBITDA margin excludes non-recurring costs of €13.2 million, mainly related to a terminated license agreement and certain special and restructuring projects.

Fourth Quarter
The Group reported continued expansion in profitability and strong cash generation in the fourth quarter, with “resilient sales” at constant exchange rates.

Preliminary fourth-quarter sales, amounting to €225.0 million, an increase of 0.4 percent in constant rates and 4.6 percent at current exchange rates compared to the prior-year fourth quarter

North America sales grew by 1.5 percent at constant exchange rates (-7.0 percent at current rates), supported by the wholesale business’s positive performance. In the last quarter, Smith’s sports products sales in physical stores turned to growth, while Blenders remained negative in its direct-to-consumer channel.

Europe sales increased by 0.7 percent at constant exchange rates (-0.1 percent at current rates), which was affected by lower volumes associated with the product supply agreement, the de-consolidation of the Lenti business sold in June 2025 and the phasing of deliveries to certain clients, anticipated in the third quarter. Europe reportedly produced a “solid organic trend,” up mid-single digits, driven by continued progress in the prescription frames business across key markets.

Emerging Markets sales performance was said to remain mixed. Asia and the Pacific slowed after several quarters of growth (-11.5 percent at constant exchange rates, -17.4 percent at current exchange rates), while some markets in the Rest of the World area drove a quarterly recovery (+3.9 percent at constant exchange rates, +0.1 percent at current exchange rates).

Fourth quarter gross margin reached 61.9 percent of sales, up 240 basis points compared to Q4 2024.

Fourth-quarter EBITDA margin came in at 6.7 percent, an improvement of 120 basis points from the 5.5 percent recorded in the fourth quarter of 2024. On an Adjusted basis, excluding non-recurring costs and income for the period outlined for the full year, Q4 EBITDA margin showed an improvement of 130 basis points, standing at 8.8 percent.

Balance Sheet and Cash Flow Summary
The Group purchased shares in Inspecs Group plc representing 25 percent of the company’s share capital, for a total consideration of approximately £21.7 million (equivalent to €24.9 million).

In the last quarter of the year, Safilo confirmed solid cash generation, reporting Free Cash Flow of nearly €16 million before the Inspecs investment. The year closed with Free Cash Flow of €55 million, including the net proceeds of €11.9 million from the disposal of Lenti S.r.l., completed in June 2025, and accounting for all investments.

Net debt at December 31, 2025, stood at €46 million (€6.6 million pre-IFRS), following the completion of the Share Buyback Program launched on June 25 and finalized on December 22, 2025, for a total of €18 million.

Outlook
For 2026, amid the ongoing challenges and complexities of the geopolitical and macroeconomic environment, which will continue to influence top-line growth opportunities, the Group remains focused on its strategic drivers to develop the business both organically and through selective acquisitions. Safilo believes it is well-positioned to continue strengthening profitability and cash generation, thereby consolidating its ability to create sustainable long-term value. 

Image courtesy Smith Sports/Safilo Group S.p.A.