OVS (OVS) Q2 2025 earnings summary

Executive summary

• Net sales for H1 2024 reached €761.7 million, up 3.6% year-over-year, with both OVS and Upim brands contributing positively and outperforming a flat or slightly negative market despite adverse weather conditions.

• Gross margin improved to 59.6% of sales, up 200 basis points from H1 2023, reflecting better purchasing conditions and markdown management.

• Adjusted EBITDA rose to €89.0 million (11.7% margin), with net income at €34.6 million, both increasing year-over-year.

• UPIM brand led with 7.3% sales growth and 26.5% EBITDA growth, while OVS brand grew 2.5% in sales.

• Positive sales momentum continued into August and September, with September showing double-digit growth and year-to-date like-for-like sales exceeding 5%.

Financial highlights

• Net sales: €761.7 million (+3.6% YoY); gross margin: 59.6% (+200 bps YoY); EBITDA: €89.0 million (+3.0% YoY); EBIT: €57.3 million (+4.8% YoY); net income: €34.6 million (+2.8% YoY).

• EBITDA margin: 11.7%; EBIT margin: 7.5%; net profit margin: 4.5%.

• Net debt/adjusted net financial position: €263.0 million, leverage at 1.38x EBITDA (1.09x excluding treasury shares).

• Working capital reduced by €11 million year-over-year; inventory in hand 8% lower, but higher stock in transit due to Suez Canal disruptions.

• CapEx reached €46.2 million in H1, focused on store refurbishments, logistics automation, and digital transformation.

Outlook and guidance

• All brands started H2 2024 with strong sales; August sales up 7% and September double-digit, supporting optimism for Q3 and full-year performance.

• Gross margin expected to remain above last year, with a slight decrease in H2 due to dollar effects.

• Tax rate for 2024 projected at 25%-26%, with increases due to new international regulations.