OVS (OVS) Q1 2027 earnings summary

Executive summary

• Strong first quarter performance with all brands and business units outperforming the market, especially Stefanel and OVS flagship brand, with Stefanel reaching break-even and accelerating its turnaround.

• Goldenpoint integration progressing well since July 2025, delivering robust sales growth, increased gross margin, and benefiting from purchasing synergies and a successful store restyling plan.

• All key commercial indicators improved, including store footfall, conversion rate, sales volumes, and average ticket value.

• Positive market conditions and supportive weather aided results, with the apparel market growing 2.3% year-over-year and the group significantly outperforming this benchmark.

• Continued focus on store refurbishments and new openings, both in Italy and internationally, with positive early signals from new markets.

Financial highlights

• Net sales for Q1 2026 reached €397.2 million, up 12.1% year-over-year; excluding Goldenpoint, growth was 7.5%.

• Organic sales grew 7.5% year-over-year, driving a 27% increase in EBITDA to €35.7 million; EBITDA margin rose to 9.4%.

• OVS EBITDA increased 26.7% to €29.1 million; Upim EBITDA rose 11.3% to €7.5 million.

• Cash absorption improved by €7.5 million year-over-year, now slightly above €100 million; net debt as of 30 April 2026 was €260.6 million, with leverage improved to 1.19x EBITDA.

• Investments of €9.5 million in treasury shares were made during market volatility.

Outlook and guidance

• Sales growth continues into Q2, with May particularly strong and June slightly softer due to weather.

• Expectation for further increases in sales, EBITDA, margin, and cash flow for fiscal year 2026, supported by enhanced brand equity and a successful multi-brand strategy.

• Optimism for continued outperformance versus the market, especially as sales periods begin.

• Positive top-line performance and improved brand perception support an optimistic outlook for the remainder of the year.