Safilo Group S.p.A., the owner of Smith Optics and Blenders and licensee of Under Armour, Fossil, Havaianas, Tommy Hilfiger, Levi’s, and Liz Claiborne brands for eyewear, among others, reported that preliminary net sales for full-year 2024 were €993.2 million, a decrease 2.3 percent at constant currency (cc) rates and 3.1 percent in reported terms compared to 2023. The company said the decline was due to the expiration of the Jimmy Choo license.

Despite the Jimmy Choo impact, the company reported that the trend in sales was slightly positive, driven by the “solidity and resilience” of its European business. The North American market was reportedly more difficult, marked by “the underwhelming performance of sunglasses and the sports business.”

The company closed the year on a positive note as fourth-quarter sales performance improved sequentially compared to the previous quarters of the year, showing a contraction of 1.1 percent cc and a decline of 1.6 percent in reported terms mainly due to the recovery of emerging markets.

Excluding the residual effect of the Jimmy Choo exit, the company’s fourth quarter was up by almost 2 percent.

Europe sales reportedly remained “stable” compared to Q4 2023 (-0.1 percent cc).

North America fourth-quarter sales were reportedly down 4.6 percent cc, impacted by lower sales of Blenders, which received a boost from the brand’s first collaborative collection with Coach Prime in the prior-year Q4 period. The performance in North America also reportedly reflected the “still subdued performance of sunglasses” in the Wholesale channel, which the company reported showed improvement in the last weeks of the year.

Smith’s sports business saw a return to growth in Q4, which continued to progress in the Direct-to-Consumer (DTC) channel and saw a recovery in physical stores, supported by a strong start to the 2025 ski season and a favorable comparison base in the prior-year Q4 period.

The Asian and Pacific markets grew by 12.9 percent cc in the fourth quarter, while the Rest of the World markets grew by 2.4 percent cc for the period.

For full-year 2024, sales performance by geographical area saw Europe’s resilience help counter the slowdown in North America, mitigating the decline in net sales.

  • Europe sales increased 1.6 percent cc year-over-year;
  • North American sales declined 5.2 percent cc for the full year;
  • Asia and Pacific decreased 2.1 percent cc; and
  • Rest of the World markets declined 5.9 percent cc for the year.

Safilo said it continued strengthening its brand portfolio and to improve margins and cash generation in 2024.

The company pointed to the acquisition of the perpetual license for Eyewear by David Beckham as an example of a further step towards the “consolidation of a high-quality and long-term brand portfolio, perfectly balanced between home and licensed brands.”

Carrera and David Beckham represented the company’s main strengths for the year while achieving double-digit growth in the last quarter, complemented by the positive results of Tommy Hilfiger, Marc Jacobs and Carolina Herrera, which reportedly delivered solid progress in their key reference markets.

Income Statement Summary
In 2024, Safilo improved margins due to the higher industrial efficiency achieved with the company’s reorganization completed in 2023 and the positive price/mix effect on sales recorded throughout the year.

On a preliminary basis, gross margin improved to 59.7 percent of sales, which is an improvement of 100 basis points compared to the adjusted level recorded in 2023. Fourth quarter gross margin came in at 59.5 percent of sales.

Adjusted EBITDA margin improved to 9.4 percent of sales. At the Adjusted EBITDA level, the Group’s operating performance was resilient despite the revenue pressure on the operating leverage. On a preliminary basis, the 2024 Adjusted EBITDA margin stood at 9.4 percent, an improvement of 40 basis points compared to 2023. In the fourth quarter, the Adjusted EBITDA margin came in at 7.5 percent, improving by 60 basis points compared to Q4 2023.

Balance Sheet and Cash Management Summary
On the cash generation front, Free Cash Flow was positive by €18.9 million in the fourth quarter, bringing the full-year level to €16.7 million, including the investment to acquire the perpetual license for Eyewear by David Beckham.

On a preliminary basis, the Group’s net debt for the year, which also takes into account the completion of the Share Buyback Program for €11.8 million and the acquisition of the perpetual license, remained stable compared to 2023, at €82.7 million (€40.3 million pre-IFRS 16, improving by around €3 million compared to 2023).

Outlook
Looking to 2025, Safilo said it remains focused on strengthening and growing its brand portfolio, aiming for an increasingly targeted use of resources and investments.

“The economic and financial improvement achieved in 2024 represents a solid basis to enable Safilo to address the opportunities of the new year,” the company concluded.

Images courtesy Safilo Group S.p.A./Eyewear by David Beckham,