Angelo Trocchia, CEO, Safilo Group S.p.A. (Group), the Padua, Italy-based parent of Smith Optics, Spy+, Serengeti and Blenders, and licensee of a range of fashion brands, reported Wednesday, August 6, that the company’s Board of Directors had reviewed and approved its economic and financial results for the first half of 2026, including specific break-out data for the second half.

Immediately following the end of the first half, the company, on July 1, closed on its acquisition of the Spy+ and Serengeti brands from Bollé Brands.

Trocchia signaled that the company had produced a “softer” second quarter after a “resilient” first quarter performance as customers in the Group’s core markets “adopted a more prudent approach to ordering,” particularly from late March and throughout April and May.

He said trends showed “some improvement in June,” supported by a more stable trading environment and gradually improving consumer confidence in selected markets.

In this context, he said that sunglasses continued to be the most affected product category, reflecting their more “discretionary nature,” while the prescription frames business experienced some deceleration compared with prior trends.

“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,” Trocchia noted. “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.”

He said these actions translated into “another quarter of solid margin expansion and strong cash generation, allowing us to further reinforce our financial flexibility.”

“In the period, we were able to invest in our strategic priorities, fully funding the acquisition of Spy+ and Serengeti with our own resources,” the CEO continued. “These two brands are highly complementary to our existing portfolio, enhancing our ability to serve the sport segment and high-end eyewear.”

First Half Summary
Safilo closed the first half of 2026 (H1, First Semester) with net sales of €512.0 million, down 1.9 percent year-after-year (y/y) at constant exchange (CC) rates and 4.8 percent at current exchange (CE) rates compared to the comparable period of 2025.

Second Quarter Summary
Net sales in the second quarter were down 5.1 percent y/y in reported CE terms (-4.5 percent CC) to €239.1 million. Some markets reportedly saw a degree of polarization, with more resilient performances in Premium and Luxury segments partially offsetting softer demand in mid- to low-price brands. Within this context, the company said the quarter continued to highlight areas of strength for Safilo, with Carrera, Smith, David Beckham, and Kate Spade brands confirming solid momentum across key markets and channels.

Net Sales by Geography
(in € million)

Europe
Europe sales amounted to €110.6 million in Q2 down 2.7 percent at CE rates and decreased 3.2 percent at reported CE rates to €110.6 million. Performance in the region was said to be mainly affected by more challenging trading conditions in France and Germany where the company said lower traffic across physical stores and online channels weighed on Safilo’s sales development.

In France, the optical market decline was broad-based across distribution channels and product categories, while in Germany, the Group’s sales softened in the internet pure players channel. By contrast, sales continued to grow in Eastern Europe, in particular in Turkey and Poland, as well as in Italy, where sustained tourist flows supported opticians’ performance across both prescription frames and sunglasses.

In the Italian market, the growth of Carrera, David Beckham, Polaroid, Tommy Hilfiger, BOSS, and Marc Jacobs, together with the launch of Victoria Beckham, more than offset the deconsolidation effect from the disposal of Lenti S.r.l. and the reduction in the product supply business.

In the first half of 2026, sales in Europe declined 1.0 percent y/y in reported CE terms (-0.5 percent  CC) to €240.5 million, contracting  slightly compared to the H1 period of 2025.

North America
North America Q2 2026 sales declined 6.1 percent CE y/y (-4.4 percent CC) to €95.9 million. Safilo’s performance was said to reflect a weak market environment, particularly in the Independent Opticians channel, where overall eyewear sales recorded a high-single-digit decline in May.

Department Stores and Retail Chains showed more supportive trends, in particular in June, driven by stronger demand for premium brands. At the brand level, Kate Spade, Carrera, David Beckham, Marc Jacobs, and Carolina Herrera continued to outperform, while Blenders remained in negative territory, still reflecting a challenging trading environment.

In the Sports channel, Smith delivered a positive performance, driven by solid momentum in the bike business, which continued to perform well across both direct-to-consumer and physical wholesale channels. This reportedly offset weaker pre-orders for winter sports products, which were affected by the uneven performance of the previous season.

In the first half of 2026, sales in North America declined 6.9 percent CE (-0.8 percent CC) to  €205.6 million.

Asia & Pacific
In Asia and Pacific, Q2 2026 sales amounted to €13.0 million, down 17.7 percent at CC rates and down 17.2 percent at reported CE rates.

Asia performance was said to be “already penalized by a particularly challenging comparison with the strong growth recorded in the second quarter of 2025,” was also held back by weak market conditions in China and the rescheduling of the Xiamen optical fair from its usual timing later in the year to June. This reportedly resulted in weaker-than-expected customer attendance and reduced commercial traction during the period.

Australia continued to deliver positive results, reportedly supported by a “solid contribution” from Smith and Carrera. These latest trends, combined with ongoing initiatives to further strengthen commercial execution across core geographies, are expected to provide a basis for the region’s gradual normalization.

In the first half of 2026, sales in Asia/Pacific declined 17.6 percent CE (-15.8 percent CC) to €24.9 million, compared to the comparative period of 2025.

Rest of the World (ROW)
ROW sales in Q2 2026 amounted to €19.5 million, down 5.1 percent at CC rates and 1.5 percent at reported CE rates. Performance in the period reportedly continued to be impacted by the effects of the conflict in the Middle East, although the region showed some signs of stabilization as the quarter progressed. In India, business performance improved, supported by a more focused go-to-market strategy, while sales in Latin America remained overall muted, as eyewear retail market growth, particularly in Brazil, continued to be driven mainly by low-price segments.

In the first half of 2026, sales in the RoW geography totaled €41.0 million, down 5.8 percent at CC rates and down 5.7 percent at CE rates compared to the caparative period of 2025.

Trump Tariffs
Safilo said it delivered a marked improvement in its economic and financial performance in the first half of 2026, underpinned by the ongoing structural progress of the business and the refunds of tariffs.

Following the implementation by U.S. Customs and Border Protection (CBP) of the refund mechanism established after the February 2026 U.S. Supreme Court ruling on IEEPA tariffs, Safilo filed claims for duties previously paid in the United States and received refunds for €22.2 million. Of this amount, €20.0 million was recognized in the P&L, mostly as a reduction of costs of goods sold, while €2.2 million was reportedly recorded as a reduction of inventory as of June 30, 2026. This one-time benefit will be partially used for future investments to further strengthen the Group’s infrastructures and accelerate marketing activities across key markets.

2026 Q2  Economic Trading Update
(in € million and percent on net sales)

Gross Profit totaled €174.8 million in the second quarter, up 12.6 percent compared to €155.3 million in the second quarter of 2025. Gross margin increased by 11.5 percentage points y/y, from 61.6 percent of net sales to 73.1 percent, benefiting 8.0 percentage points from tariff refunds and an additional 3.5 percentage points from structural business improvements. The latter were said to be primarily driven by continued favorable price/mix effects, and by a positive year-on-year impact from lower tariffs.

Adjusted EBITDA totaled €49.0 million in Q2, up 75.2 percent y/y compared to €27.9 million in the second quarter of 2025. The Adjusted EBITDA margin increased by 9.4 percentage points, from 11.1 percent of net sales in Q2 2025 to 20.5 percent in Q2 2026, reportedly driven by the significant increase in gross margin, partially offset by “lower operating leverage in a weaker sales environment, cost inflation pressures and continued investments behind the Group’s brands.”

Excluding tariff refunds, the Adjusted EBITDA margin stood at 12.1 percent of net sales, up 1.0 percentage points year-over-year.

2026 H1 Key Economic Performance
(in € millions and percent of net sales)

Free Cash Flow
In the second quarter of 2026, Safilo confirmed solid cash generation, with Free Cash Flow of €23.8 million, bringing the total for the first half to €36.4 million, compared to €43.5 million in the first half of 2025.

In the first half, Cash Flow from operating activities increased to €78.8 million, compared to €40.7 million in the first half of 2025, benefiting from a solid economic performance and from tariff refunds.

During the period, the Group also recorded cash outflows related to strategic investments, namely €5 million for the additional shares in Inspecs Group, €21.5 million for the acquisition of Spy+ and Serengeti and €6.3 million for the purchase of the remaining 20 percent stake in Blenders, which brought Safilo’s ownership to 100 percent.

Excluding the impact of the tariff refunds and these strategic investments, Free Cash Flow amounted to €29.4 million in the second quarter of 2026 and €46.9 million in the first half of 2026, compared to €17.2 million and €31.6 million in the corresponding periods of 2025, excluding the €11.9 million proceeds from the disposal of Lenti S.r.l.

Net Debt
As of June 30, 2026, the Group’s net debt decreased to €5.4 million, equal to a positive net financial position of €29.6 million pre-IFRS 16. This result, which includes the impact of the execution of the Share Purchase Program for €2.4 million, compares to €46.1 million (€6.6 million pre-IFRS 16) at the end of December 2025, and to €42.4 million (€0.7 million pre-IFRS 16) at the end of June 2025.

Share Purchase Program
Based on the Share Purchase Programme launched on June 8, 2026, Safilo S.p.A. had purchased 1,360,000 Safilo Group ordinary shares as of June 30, 2026, equal to approximately 0.33 percent of the outstanding shares, for a total transaction amount of €2.4 million.

As of July 31, 2026, Safilo S.p.A. had purchased, since the launch of the Program, a total number of 3,200,000 of Safilo Group ordinary shares. Taking into consideration the shares already owned, at the above date, Safilo S.p.A. held a total number of 25,536,585 of Safilo Group ordinary shares, equal to approximately 6.13 percent of the outstanding shares.

“We launched a new share buyback programme in June, as part of a disciplined and efficient capital allocation approach,” Trocchia commented. “While the overall environment remains challenging, some positive signs we observed towards the end of the second quarter and into the beginning of the third give us more confidence as we look to the second half of the year, ready to capture the opportunities which may arise from a gradual improvement in market trends.”

Spy+ and Serengeti Chronology

  • April 21, 2026: Safilo announced the signing of an exclusivity agreement with Bollé Brands aimed at the acquisition of Spy+ and Serengeti
  • May 11, 2026: Safilo signed a binding agreement to acquire Spy+ and Serengeti
  • June 8, 2026: Safilo launched Safilo Group S.p.A. Shares Purchase Programme
  • July 1, 2026: Safilo completed the acquisition of Spy+ and Serengeti

The Group’s portfolio now includes home brands (Carrera, Polaroid, Smith, Spy+, Serengeti, Blenders, Privé Revaux, and Seventh Street); the Perpetual License Eyewear by David Beckham; Licensed brands BOSS, Carolina Herrera, Dsquared2, Etro, Fossil, HUGO, Isabel Marant, Juicy Couture, Kate Spade New York, Kurt Geiger, Levi’s, Liz Claiborne, Love Moschino, Marc Jacobs, Missoni, Moschino, Pierre Cardin, Ports, Stuart Weitzman, Tommy Hilfiger, Tommy Jeans, Under Armour, and and Victoria Beckham.

Safilo Group S.p.A. reports it is a “global player in the eyewear industry that has been creating, producing and distributing for over 90 years sunglasses, prescription frames, outdoor eyewear, goggles. and helmets.

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