Milan, Italy-based brand consolidator BasicNet S.p.A., the parent of Briko, K-Way, Kappa, Robe di Kappa, Sebago, Sundek, Superga, and Woolrich Europe,  reported aggregate sales of Group brands by the global network, which includes sales by licensees, increased 11.3 percent year-over-year (y/y) to €299.1 million, compared to €268.8 million in the first quarter of 2025.

Aggregate sales of Group Brands by the Global Network

  • Aggregate sales from third-party Commercial and Direct Licensees increased 15.4 percent y/y for the first half to €453.1 million after growing 19.0 percent in the first quarter:
    • Europe sales jumped 19.6 percent for the half, falling short of the nearly 26 percent increase in Q1. Europe now accounts for ~81 percent of aggregate sales and it is where the Group’s development projects have focused:
    • Asia and Oceania grew 2.1 percent in H1, less than half the growth rate in the first quarter:
    • The Middle East and Africa increased 6.3 percent y/y after falling 5.5 percent in the first quarter; and
    • The Americas contracted once again for the half, as sales for the half fell 18.8 percent, slightly worse than the Q1 trend line.
  • Productive Licensees sales declined 12.6 percent to €57.3 million.

Consolidated Revenues
Consolidated revenues, which includes Direct Sales and Royalties from the licensees, amounted to €216.4 million in the first half, representing a 25.4 percent increase from €172.6 million in H1 2025. The H1 trend was a considerable moderation from the 35 percent increase in the first quarter.:

  • Direct Sales jumped 45.0 percent to €188.7 million in the first half, compared to €137.3 million in the 2025 H1 period, driven in part by the Woolrich and Sundek contributions, the integration of the European retail networks, the ongoing consolidation of European retail operations, alongside strong e-commerce channel growth (+111 percent) in which the Group continued to invest during the period;
  • Royalties from Commercial and Productive Licensees fell 21.3 percent (an acceleration for the 14 percent decline in Q1) to €27.2 million from €34.6 million in the 2025 first half period.

Part of the reduction in Productive Licensees Sales and the resulting royalties was said to be due to the launch of direct distribution in certain markets that were operated by third-party licensees in the first half 2025, resulting in the reclassification of a portion of revenues from Royalties to Direct Sales.

Certain key financial indicators presented in the company’s first half earnings report have been calculated based on the pro-forma consolidated figures, excluding the effects of non-recurring charges and income from the M&A work completed at the end of 2025. The company said it believes the pro form view provides a clearer view of the Group’s operating performance in the H1 period. The comparative figures for 2025 were also compiled and presented on a pro forma basis, net of the extraordinary items resulting from the company’s sale of approximately 40 percent of the stake held in K-Way S.p.A., including the related costs of €17.7 million, in addition to further non-recurring charges of €2.8 million.

Pro forma EBITDA amounted to €9.1 million in the first half, compared to €15.1 million in 2025 first half. This result reportedly reflects the Group’s transformation and expansion phase involving the investments and costs incurred to integrate Woolrich and Sundek and their gradual inclusion into the business model.

Excluding non-recurring extraordinary charges totaling €7.0 million, the company said EBITDA for the H1 period still includes the operating and personnel costs related to the former Woolrich offices in Bologna and to the retail locations that have already closed or are in the process of closing.

“Although these costs do not qualify as non-recurring charges for calculating the pro-forma figures, they are expected to gradually reduce as the integration activities are completed,” the company said in the earnings release.

The EBIT loss for the half amounted to €10.3 million, a €15 million swing from the EBIT profit in the first quarter, and compared to an EBIT profit of €4.4 million in the H1 period last year, following the recognition of amortization and depreciation on tangible and intangible assets of €7.3 million and depreciation on right-of-use assets totaling €12.1 million. The figure reportedly more than doubled versus the prior year, which was said to be primarily due to the expansion of the retail network following the recent acquisitions and new store openings.

Although already adjusted for non-recurring extraordinary charges of €7.1 million, EBIT reportedly also includes depreciation on rights-of-use accruing to the period relating to leases which have been terminated or are in the process of being terminated; these items are also not expected to recur in subsequent periods.

Excluding these effects, the company said EBITDA and EBIT would be higher and would better reflect the Group’s structural profitability, which is expected to benefit progressively from the synergies arising from the integration of the recently-acquired brands.

The net loss of €11.1 million for the first half compared to net profit of €0.8 million in the first six months of 2025. The figure includes a net pro forma adjustment of approximately €5.9 million, lower than the adjustment applied to EBITDA and EBIT, said to be due to the deferred tax recognized on the non-recurring charges.

The company noted that the figures for the previous year are presented on a pro-forma basis, excluding the extraordinary costs related to the sale of the 40 percent stake in K-Way S.p.A. Revenues for the year include the contribution of Woolrich Europe and Sundek which are not present in the comparative period.

Balance Sheet Summary
The net financial position with banks was negative €146.2 million at the end of the first half, compared to negative €74.4 million at December 31, 2025. The position was said to primarily reflect the financial debt incurred by the Group at the end of 2025 following the acquisitions of Woolrich and Sundek, in addition to the normal course of the business cycle, which results in a greater absorption of financial resources in the first half of the year than at the end of the year.

The Group during the first half reportedly completed the refinancing of Sundek’s debt, settling the previous syndicate loan and the additional outstanding unsecured loans, while rebalancing the maturities by reclassifying a portion of the debt from short-term to medium to long-term.

The shift was said to be carried out through two five-year loans of €20 million each, agreed with Banca Monte dei Paschi di Siena and Intesa Sanpaolo, respectively.

The overall net financial position was negative €247.3 million a the end of June, compared to negative €191.0 million at December 31, 2025.

Dividends & Other
The company said dividends totaling €7.6 million were distributed in H1 2026 to BasicNet shareholders, with capital reserves of €2.0 million returned to minority shareholders and €6.4 million of treasury shares acquired.

The company also recognized the payment of €1.6 million in the period related to the price adjustment for the acquisition of Sebago France and a final payment of €5.3 million for the earnout linked to the acquisition of K-Way France.

Outlook
Against a still uncertain geopolitical and macroeconomic backdrop, the Group said it remains focused on sustainable growth and brand enhancement over the medium to long-term. The results for the period were said to reflect the significant growth in business volumes, supported in part by the contribution of Woolrich and Sundek, in addition to the investments required to integrate the two new brands and for their gradual incorporation into the BasicNet model.

“This process strengthens the Group’s multi-brand positioning and lays the foundation for tapping into the synergies and growth opportunities arising from the new scope,” the company ny concluded in its H1 report.

Images courtesy Woolrich Europe and Sebago/BasicPress