Safilo Q3 Sales Rise 3% to 227.5 Million Euros on North America Recovery

Safilo Group posted third-quarter sales of 227.5 million euros, up 3 percent from 220.8 million euros a year earlier, as a North American recovery offset continued weakness in Europe. The Italian eyemaker reported the figures for the three months ended Sept. 30 during a conference call with analysts on Tuesday after the close of trading.

Adjusted EBITDA reached 26 million euros, up 17.3 percent from 22.1 million euros. Gross profit rose 12.3 percent to 148 million euros from 131.7 million euros, helped by favorable price/mix effects and a positive year-on-year impact from lower tariffs. Free cash flow came in at 24.6 million euros, including roughly 3 million euros of tariff refunds, against 20.7 million euros a year earlier.

What drove the top line?

North America led the quarter. Sales there rose 7.7 percent to 104.4 million euros — almost 46 percent of group revenue — supported by stronger direct-to-consumer trends, particularly in sunglasses. Europe fell 3.3 percent to 87.9 million euros. Asia-Pacific gained 2.6 percent to 14.2 million euros, and the Rest of the World rose 9.8 percent to 21.1 million euros. China returned to growth and India also recovered. Prescription frames went back to growth, while Carrera, Smith, Kate Spade, David Beckham and Boss eyewear performed strongly.

Chief executive officer Angelo Trocchia, who has held the role since 2018, underscored the "clear improvement" of the quarter compared with the second-quarter slowdown.

"The third quarter marked an improvement in our sales trajectory, confirming the positive signs we had started to see toward the end of the first half and into July," Trocchia said.

"North America showed clearer signs of recovery, as market conditions gradually stabilized across certain channels, while the environment in Europe remained more challenging for sunglasses in some key markets," he added.

What did management say about current trading?

"October was broadly in line with expectations, depending on the different geographies," Trocchia said. "North America saw some moderation after the third quarter, while Europe was aligned with the previous two quarters." Italy, Spain, Portugal and Greece ranked as the best performers; France and Germany were slower.

Trocchia said Safilo "delivered further progress in margins and continued cash generation, providing us with the flexibility to continue investing behind our strategic priorities." He noted the group began deploying additional resources behind core brands and digital infrastructure, with those initiatives becoming more significant in the fourth quarter to strengthen brand visibility and support customers in an uncertain, volatile market.

What about leadership and M&A?

Also on Tuesday, Safilo renewed Trocchia's contract for an additional three-year period, effective Dec. 31.

On acquisitions, chief financial officer Michele Melotti said deals "remain a priority for capital allocation" also for next year. Trocchia cautioned there are "no specific M&A scenarios" at the moment. Safilo acquired Spy+Serengeti earlier this year and built a stake of almost 30 percent in Inspecs Group. Integration of the recent acquisitions into the distribution network has started.

Where do smart glasses stand?

Smart glasses development is "progressing very well as per our plans," Trocchia said, with market launch expected "by summer time." He called it "crucial" to form "strong partnerships with tech companies, because AI is the discriminator."

How do nine-month numbers look?

The picture remains softer over nine months. Group sales fell 2.5 percent to 739.4 million euros from 758.4 million euros. Europe declined 1.7 percent to 328.4 million euros and North America dropped 2.5 percent to 310 million euros. Asia-Pacific fell 11.2 percent to 39 million euros; the Rest of the World edged down 1 percent to 62.1 million euros.

Nine-month adjusted EBITDA stood at 112 million euros, up 32.7 percent from 84.4 million euros. As of Sept. 30, the group's net financial position reached a positive 10 million euros, compared with net debt of 46.1 million euros at the end of December 2025.

With margins expanding, cash generation continuing and the balance sheet in positive territory, Safilo enters the fourth quarter with room to fund brand investment, integration and a smart glasses launch targeted for summer.