Safilo Group (SFL) Q2 2026 earnings summary

Executive summary

• Net sales for H1 2026 were €512.0 million, down 4.8% year-over-year (1.9% at constant exchange rates), reflecting a resilient start but a softer Q2 due to subdued consumer sentiment and cautious ordering, especially in North America and Europe.

• Profitability and cash generation improved, with gross profit up 4.8% to €344.0 million and gross margin rising 6.1pp to 67.2%, aided by US tariff refunds and favorable price/mix.

• Adjusted EBITDA increased 38.1% to €86.0 million (margin 16.8%, up 5.2pp), and adjusted net profit rose 46.7% to €49.4 million (net margin 9.6%, up 3.3pp).

• Strategic investments included the acquisition of SPY+ and Serengeti, fully funded from internal resources, and the launch of a new share buyback program.

• Positive signs emerged towards the end of Q2, with improving consumer confidence in selected markets and management expressing increased confidence for H2 2026.

Financial highlights

• Net sales: €512.0 million in H1 2026, down 4.8% year-over-year; Q2 sales: €239.1 million, down 5.1%.

• Gross profit: €344.0 million, up 4.8%; gross margin: 67.2% (+6.1pp); Q2 gross margin: 73.1% (+11.5pp), with 8pp from a one-time tariff refund.

• Adjusted EBITDA: €86.0 million (+38.1%), margin 16.8% (+5.2pp); Q2 adjusted EBITDA: €49.0 million (+75.2%), margin 20.5% (+9.4pp).

• Adjusted net profit: €49.4 million (+46.7%), margin 9.6% (+3.3pp).

• Free cash flow: €36.4 million in H1 2026 (normalized €46.9 million); net financial position improved to €29.6 million pre-IFRS 16.

Outlook and guidance

• Management expects H2 2026 to show gradual market improvement, with positive signals in North America and selected markets.

• H2 gross margin expected to remain positive but less pronounced as prior pricing actions and deconsolidation effects are now in the base.

• Any further tariff refunds in H2 are expected to be residual.

• Additional marketing investments in 2026 are one-off and not expected to recur in 2027.