Safilo S p A : The Board of Directors of Safilo Group S.p.A. approves 2025 results

About this update from Safilo Group S.p.a.

THE BOARD OF DIRECTORS OF SAFILO GROUP S.P.A. APPROVES 2025 RESULTS SALES GROWTH AT CONSTANT CURRENCIES Net sales at €983.4 M, +1.8% at constant currencies, +2.6% organic performance Growth in Europe and North America led by Carrera, David Beckham, Smith and the key licenses CONTINUED IMPROVEMENT OF PROFITS AND MARGINS Gross profit at €599.3 M, +1.1%; margin at 60.9%, +120 bps Adj. 2 EBITDA at €104.2 M, +12.0%; margin at 10.6%, +120 bps Adj. 2 Net result at €44.6M, +30.4%; margin at 4.5%, +110 bps STRONG CASH FLOW GENERATION Free Cash Flow at €68.1 M, before the purchase of an equity stake in Inspecs Group and the sale of Lenti S.r.l. Net debt at €46.1 M from €82.7 M, after Share Buyback of €18 M STRATEGIC PROGRESS Renewal of licenses: Dsquared2, Under Armour, Carolina Herrera and Pierre Cardin New ten-year licensing agreement for Victoria Beckham branded eyewear Entry into the CDP Climate Change Leadership List (score A−) NEW BUYBACK PROGRAMME FOR A MAXIMUM NUMBER OF 10M SHARES Padua, March 12 2026 - Today, the Board of Directors of Safilo Group S.p.A. has approved the Company's consolidated annual report for the year ended December 31, 2025 1 and examined the separate financial statements for the year ended December 31, 2025 1 , which will be submitted for approval by the shareholders at the Annual General Meeting to be held in a single call on April 28, 2026. The Board of Directors has decided not to propose the payment of a dividend at the next Annual General Meeting. The Board has supported a resolution to the subsidiary Safilo S.p.A. to execute a new Share Buyback Programme. Angelo Trocchia, Safilo Chief Executive Officer, commented: "2025 was a year in which Safilo demonstrated its ability to grow and create value, even in a complex global environment shaped by geopolitical tensions, market volatility, and tariff pressures. The quality of our brand portfolio, combined with our geographical diversification and adaptability, supported our revenues and the improvement of all key economic and financial indicators. We closed the year with net sales up 1.8% at constant exchange rates, a positive performance to which both North America and Europe contributed. In both regions, the solidity of our business confirmed the quality of our relationships with customers and the power of a brand portfolio able to generate value across multiple markets and distribution channels and appeal to different consumer groups: from our flagship brands, Carrera, Smith and David Beckham, to leading licenses such as Tommy Hilfiger, Marc Jacobs, BOSS, Kate Spade, and Carolina Herrera. In a year marked by significant external pressures, we responded quickly and effectively, neutralizing the negative impact of tariffs thanks to a flexible suppy chain and targeted commercial actions. We ended 2025 with a gross margin of about 61% and adjusted EBITDA at 10.6%, both up 120 basis points compared to 2024. These results bring our profitability back to the highest levels of the past decade and, together with disciplined and effective working capital management, helped generate a Free Cash Flow of 55 million euros and reduce net debt to 46 million euros, further strengthening our financial profile. Our confidence in the Group's improving trajectory encouraged us to launch a new buyback program, designed to enhance flexibility and efficiency in the allocation of our financial resources. Along with the shares we already held, this initiative has allowed us to reach about 5.6% of Safilo's share capital. We also continued to drive a dynamic management of our brand portfolio, renewing important partnerships such as Carolina Herrera, Under Armour, Dsquared2, and Pierre Cardin, and signing a ten-year licensing agreement for Victoria Beckham eyewear, a brand that will enrich our offering in the aspirational women's segment. In line with our supply chain optimization strategy, in June we announced the sale of Lenti S.r.l., further focusing our industrial perimeter on the Group's core competencies. On the investment front, December marked the purchase of a 25% equity stake in Inspecs, a UK - based group particularly active in optical frames, one of the most important areas for our long - term development. 2025 also marked significant progress in sustainability. We reached 100% renewable electricity across all our activities and were included in CDP's Leadership List, confirming the credibility and consistency of our decarbonization journey. The increasing use of recycled and bio-based materials in our collections and the recognition received by our products reflect our concrete commitment to building increasingly virtuous business models throughout the value chain. As we look to 2026, we do so with both awareness and a sense of responsibility, remaining firmly committed to our brands, to innovation, and to the quality of our relationships with customers and partners. In a global environment that in recent weeks has shown new and significant elements of tension and instability, financial discipline and the ability to adapt rapidly to external challenges have become even more crucial levers for our long-term value-creation journey." NET SALES PERFORMANCE In 2025, Safilo recorded net sales of Euro 983.4 million, up 1.8% at constant exchange rates and delivering an organic growth of +2.6% when excluding the impact of the Lenti business deconsolidation completed in June. At current exchange rates, revenues declined by 1%, reflecting the steady weakening of the US dollar against the euro throughout the year. In the fourth quarter, net sales reached Euro 225.0 million, up 0.4% at constant exchange rates and +1.9% on an organic basis. At current exchange rates, the quarter posted a decline of 4.6%, significantly affected by unfavorable currency movements. Organic growth for the year was supported by the strong expansion of prescription frames, which continued to show robust demand across all major geographies. This performance offset the still-challenging trend in sunglasses, where consumption remained more cautious, particularly in the US value-for-money segment, where business was marked by intense promotional activity. 2025 confirmed the strength and balance of Safilo's brand portfolio, which continued to generate value across markets and distribution channels thanks to the combined contribution of the Group's home brands and its key contemporary and lifestyle licenses. The breadth and complementarity of the portfolio, from flagship brands Carrera and David Beckham to global licenses such as Tommy Hilfiger, Marc Jacobs, BOSS, Kate Spade and Carolina Herrera, were among the main drivers of growth, enabling the Group to reach a broad range of consumer segments and to respond effectively to trends across the main eyewear categories. Within this context, Carrera stood out once again as one of the year's most dynamic performers, delivering growth across all key markets thanks to the strong appeal of its iconic sun and optical collections, further supported by the brand's expansion in the women's segment. Following two years of outstanding results achieved together, Carrera renewed its partnership with Ducati in 2025, continuing to offer design, technology and speed enthusiasts the opportunity to wear the Carrera|Ducati collections. David Beckham continued on an exceptionally strong growth path, affirming its position as one of the top-performing premium men's brands in the portfolio. The quality of its collections, together with the brand's strong recognition and the ongoing expansion of its international distribution, supported sustained momentum throughout the year. In the sports business, Smith continued to represent a key asset, driven by the excellent performance of its Direct-to-Consumer (DtC) channel. Despite a more challenging environment in brick-and-mortar retail, the brand maintained its distinctive positioning and confirmed its leadership in the U.S. winter sports segments. In 2025, the wholesale channel recorded mid-single-digit growth, supported by the combined contribution of independent opticians and retail chains, which continued to reward the quality of Safilo's offering and the strength of the commercial relationships built in recent years. The online business remained stable, maintaining a revenue share of around 16%, supported by the expansion of the sports direct-to-consumer channel and the growth of European Internet Pure Players, which helped offset the weaker performance of Blenders' ecommerce channel. NET SALES PERFORMANCE BY GEOGRAPHY (in Euro million) 2025 % 2024 % % Change current forex % Change constant forex North America 417.6 42.5 428.7 43.2 -2.6% +1.8% Europe 423.9 43.1 414.2 41.7 +2.3% +2.7% Asia Pacific 59.3 6.0 58.6 5.9 +1.3% +4.8% Rest of the world 82.6 8.4 91.8 9.2 -10.0% -4.5% Total 983.4 100.0 993.2 100.0 -1.0% +1.8% Q4 2025 % Q4 2024 % % Change current forex % Change constant forex North America 99.8 44.4 107.3 45.5 -7.0% +1.5% Europe 89.9 40.0 90.1 38.2 -0.1% +0.7% Asia Pacific 15.3 6.8 18.6 7.9 -17.4% -11.5% Rest of the world 19.9 8.8 19.9 8.4 +0.1% +3.9% Total 225.0 100.0 235.8 100.0 -4.6% +0.4% In North America , 2025 sales amounted to Euro 417.6 million, up 1.8% at constant exchange rates compared with the Euro 428.7 million recorded in 2024. At current exchange rates, revenues declined by 2.6%, reflecting the 4.4% depreciation of the average dollar-euro exchange rate. In the fourth quarter, the region maintained a positive trajectory at constant exchange rates, up 1.5%, while at current exchange rates sales decreased by 7.0%. The full year was supported by the solid performance of the wholesale channel, which delivered mid-single-digit growth in every quarter, driven by sustained momentum across the Group's contemporary and lifestyle portfolio. Among these, Eyewear by David Beckham, Tommy Hilfiger, Hugo Boss, Marc Jacobs and Kate Spade stood out for their robust and broad-based growth, further strengthening their presence with key customers across the region. Across product categories, growth in North America was again driven by prescription frames, while sunglasses sales were held back by the highly promotional environment in the entry-price segment. This dynamic continued to weigh on Blenders' e-commerce channel, although its performance in the second half of the year proved less challenging than in the first six months. In the sports segment, Smith delivered a positive performance, supported by the significant expansion of its DtC channel, which now accounts for roughly 40% of the brand's total business. Sales in brick-and-mortar sporting-goods stores were softer between the second and third quarters, following the Group's decision to temporarily limit imports of winter products from China, resulting in delayed deliveries. Most of the impacted volumes were recovered in the fourth quarter, helping to drive a rebound in physical retail. In Europe , 2025 sales reached Euro 423.9 million, up 2.7% at constant exchange rates and 2.3% at current exchange rates compared to Euro 414.2 million in 2024. Both in the quarter and the full year, Europe delivered a solid organic performance, with mid-single digit growth driven above all by the continued expansion of the prescription frames business across all major markets. Among these, France again proved to be the region's most dynamic market, supported by a broader commercial footprint and consistently robust demand. Turkey and Poland also remained standout performers, each recording double-digit growth and ranking among the Group's fastest-growing markets. Growth was broad-based across the portfolio, with particularly strong momentum in the Group's contemporary and lifestyle brands. The only exception was Polaroid, which saw a slight decline due to an unfavorable sunglasses season in some key markets. Fourth-quarter sales increased by 0.7% at constant exchange rates (-0.1% at current exchange rates), a resilient performance considering the headwinds from lower volumes tied to the product supply business, the deconsolidation of the Lenti S.r.l. business sold in June, and the phasing of deliveries to certain clients, anticipated in the third quarter. Across the region, the strengthening of the customer base was fueled by the increasing reach of the You&Safilo Business-to-Business (BtB) platform, which continued to elevate service standards and strengthen long-standing relationships with independent opticians. Its growing adoption reflects the trust built over time and underscores the Group's commitment to supporting the channel with advanced digital tools that simplify daily operations, enhance efficiency and improve overall purchasing experience. In Asia and Pacific , 2025 closed with sales of Euro 59.3 million, up 4.8% at constant exchange rates and 1.3% at current rates. The region experienced a slowdown in the fourth quarter, with revenues down 11.5% at constant exchange rates and 17.4% at current rates, reflecting a normalization of demand in several markets after the strong acceleration seen in the first nine months of the year. The positive trend that characterized much of the year was supported by the solid performance of distributor-led markets and by the healthy growth trajectory of the Australian market, where Carrera played an important role supported by the brand-building initiatives launched in the country and the successful introduction of the women's collection. Among the brands, Tommy Hilfiger also stood out, posting particularly strong progress and confirming the brand's growing appeal across the region. In the Rest of the World, 2025 sales were equal to Euro 82.6 million, down 4.5% at constant exchange rates and 10.0% at current rates. In the fourth quarter, some countries in the region began to show signs of recovery, allowing the area to return to growth, up 3.9% at constant exchange rates (+0.1% at current rates), helping to mitigate the weaker dynamics that had characterized the rest of the year. The area's performance was affected by the slowdown in India and by lower sales to distributors in the Middle East, a region impacted by rising geopolitical tensions, more cautious purchasing behavior, and the resulting volatility in demand. In parallel, Latin America showed mixed trends: Mexico held up well, supported by the growth of Carrera and Carolina Herrera and by more stable consumer spending, while Brazil experienced a slowdown, reflecting weaker demand and a less dynamic distribution environment, also due to the macroeconomic uncertainties that characterized the market during the year. published on 3 November 2005.

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