The Board of Directors of Safilo Group S.p.A. has reviewed the Group’s preliminary key performance indicators for the financial year ended December 31, 2024. The full-year annual results were approved by the Board of Directors on March 11, 2025.
In 2024, Safilo’s preliminary net sales amounted to Euro 993.2 million, recording a decrease of 2.3% at constant exchange rates and 3.1% at current exchange rates compared to 2023. The contraction is due to the end of the Jimmy Choo license. Net of this impact, the trend in sales was slightly positive, driven by the solidity and resilience of the European business. The North American market was however more difficult, marked by the underwhelming performance of sunglasses and the sports business.
In Q4, sales performance improved compared to the previous quarters of the year, showing a contraction of 1.1% at constant exchange rates and 1.6% at current exchange rates, to which especially the recovery of emerging markets contributed. Excluding the residual effect of Jimmy Choo’s exit, the quarter was positive by almost 2%.
Sales in Europe remained stable compared to Q4 2023 (-0.1% at constant exchange rates), while in North America, Q4 was down 4.6% at constant exchange rates, impacted by the lower sales of Blenders, which, in the same period of 2023, had been boosted by the success of the brand’s first collection in collaboration with Coach Prime.
The performance in North America also reflected the still subdued performance of sunglasses in the wholesale channel, which nevertheless showed signs of improvement in the last weeks of the year. It was instead a quarterback to growth for Smith’s sports business, which continued to progress in the Direct-To-Consumer (DTC) channel and saw a recovery in physical stores, supported by a strong start to the 2025 ski season and a favourable comparison base.
In Q4, the Asian and Pacific markets grew by 12.9% at constant exchange rates, while the Rest of the World markets grew by 2.4% at constant exchange rates. 2024 sales performance by geographical area saw Europe growing by 1.6% at constant exchange rates, while the North American market recorded a decline of 5.2% at constant exchange rates. In the year, revenues in Asia and the Pacific and the Rest of the World decreased by 2.1% and 5.9% respectively at constant exchange rates.
- Europe’s resilience helped counter the slowdown in North America, mitigating the decline in net sales to 2.3%
- Gross margin improved to 59.7% of sales and adjusted2 EBITDA margin improved to 9.4%
- The brand portfolio was strengthened with the acquisition of the perpetual license for Eyewear by David Beckham
- Positive Free Cash Flow of €16.7 M
- Stable net financial debt at €82.7 M after the acquisition of the perpetual license and the completion of the Share Buyback Program
Safilo Delivered Stronger Margins And Improved Cash Generation In A Challenging Market
In 2024, the acquisition of the perpetual license for Eyewear by David Beckham represented a further step towards the consolidation of a high-quality and long-term brand portfolio, perfectly balanced between home and licensed brands. Carrera and David Beckham represented the main strengths of the year, achieving double-digit growth also in the last quarter of the year. These were complemented by the positive results of Tommy Hilfiger, Marc Jacobs, and Carolina Herrera, which delivered solid progress in their key reference markets.
In 2024, Safilo improved margins thanks to the higher industrial efficiency achieved with the reorganisation completed in 2023, and the positive price/mix effect on sales was recorded throughout the year. On a preliminary basis, the gross margin for the year was 59.7% of sales, which is an improvement of 100 basis points compared to the adjusted level recorded in 2023. In Q4, gross margin equalled 59.5%.
At the adjusted EBITDA level, the Group’s operating performance was resilient despite the revenue pressure on the operating leverage. On a preliminary basis, the 2024 adjusted2 EBITDA margin stood at 9.4%, delivering an improvement of 40 basis points compared to 2023. In Q4, the adjusted EBITDA margin, equal to 7.5%, improved by 60 basis points compared to Q4 2023.
On the cash generation front, in Q4 the Free Cash Flow was positive for Euro 18.9 million, bringing the amount for the year to Euro 16.7 million, including the investment to acquire the perpetual license for Eyewear by David Beckham. On a preliminary basis, the Group’s net debt for the year, which also takes into account the completion of the Share Buyback Program for Euro 11.8 million, remained stable compared to 2023, at Euro 82.7 million (Euro 40.3 million pre-IFRS 16, improving by around Euro 3 million compared to 2023).
Looking to 2025, Safilo remains focused on strengthening and growing its brand portfolio, aiming for an increasingly targeted use of resources and investments. The economic and financial improvement achieved in 2024 represents a solid basis to enable Safilo to address the opportunities of 2025.
