Silvano Fashion Group (SFG1T) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was 12,016 thousand EUR, down 13.6% year-over-year, with gross profit falling 25.0% and operating profit down 60.5%.

• Net profit rose slightly by 1.8% to 2,969 thousand EUR, with EPS up 14.3% to 0.08 EUR.

• Wholesale revenue declined 24.0%, while retail revenue increased 6.1%.

• Russia and Belarus accounted for 85.1% of total sales; Russian sales fell 19.5%, Belarusian sales rose 10.4%.

• Total assets increased 5.9% to 89,449 thousand EUR; equity attributable to parent rose 6.7%.

Financial highlights

• Gross margin dropped to 48.6% from 56.0% year-over-year.

• EBITDA decreased 49.6% to 2,165 thousand EUR; EBITDA margin fell to 18.0%.

• Operating cash flow was negative at -2,618 thousand EUR, compared to 1,753 thousand EUR in Q1 2024.

• Cash and cash equivalents fell to 2,348 thousand EUR from 7,683 thousand EUR at year-end.

• Inventory increased to 32,140 thousand EUR, up from 28,305 thousand EUR at year-end.

Outlook and guidance

• Focus remains on improving retail profitability in Russia and expanding the store chain as opportunities arise.

• Investments in Q1 2025 were mainly for store openings, renovations, and production equipment.