Safilo Group S.p.A.

Safilo reported Q2 2026 net sales down 4.5% at constant exchange rates and first-half sales down 1.9%. Gross margin rose 11.5 percentage points year over year in Q2 to 73.1%; first-half gross margin increased 6.1 percentage points to 67.2%. Adjusted EBITDA was EUR 49 million in Q2, up 75.2% year over year, with margin at 20.5%; first-half adjusted EBITDA was EUR 86 million with a 16.8% margin. Adjusted operating profit for H1 was EUR 68.3 million and adjusted group net profit was EUR 49.4 million, up almost 47%. Free cash flow was EUR 23.8 million in Q2 and EUR 36.4 million in H1, and net debt ended June at EUR 5.4 million, or a positive net financial position of EUR 29.6 million pre-IFRS 16. Management did not give formal numerical full-year guidance, but said H2 should be better than H1, with more visible recovery in North America than Europe and further tariff refund benefits expected to be residual.

Angelo Trocchia framed the quarter as one where Safilo protected business quality despite softer demand, emphasizing disciplined commercial execution, favorable price/mix, and continued cost control. He said the company is using its cash generation to fund strategic investments, including the SPY+ and Serengeti acquisitions and a new buyback program, while still keeping capital allocation disciplined. His tone was cautious on the market but more constructive on the second half, citing improving customer behavior in late June and early July.

Michele Melotti highlighted the main financial drivers: Q2 net sales down 4.5% constant currency, first-half sales down 1.9%, and gross margin up to 73.1% in Q2 and 67.2% in H1. He quantified the tariff refund benefit at EUR 22.2 million received at quarter-end, with EUR 20 million recognized in P&L and EUR 2.2 million booked as inventory reduction, and said any additional refund amounts should be fairly residual. He also noted that excluding refunds, adjusted EBITDA margin was 12.1% in Q2 and 12.9% in H1, and said free cash flow of about EUR 47 million in H1 on a normalized basis reflected organic cash generation, though inventory could rebuild as sales improve.

Analysts focused on how sustainable the gross margin expansion is, whether H2 would still benefit from tariff refunds, what portion of the refund would be reinvested, and whether the late-quarter trading improvement implied positive growth. Management said H2 gross margin should still be supported by lower tariffs, but less by the Lenti deconsolidation and prior pricing actions; it also said any further tariff refund would be small. On trading, management said the soft patch was concentrated in April, May, and early June, while late June and July improved, especially in North America. On Blenders, management said the brand is still under pressure but has a role in the portfolio and will be managed more integrally rather than through aggressive pricing; on pricing to customers, management said it does not plan to pass tariff refunds directly to customers.