MILAN — The progressive weakening of the U.S. dollar against the euro weighed on Safilo Group’s revenues last year.
On Thursday at the end of trading in Milan where the Italian eyewear firm is publicly listed, Safilo reported a 1 percent decline in preliminary sales to 983.4 million euros. At constant exchange, sales were up 1.8 percent.
In the fourth quarter ended Dec. 31, sales were down 4.6 percent to 225 million euros. But at constant exchange, revenue inched up 0.4 percent.
While there was no conference call with analysts and the press, Safilo said in a statement that “the leadership of Smith’s sports products in the United States, together with the continued strengthening of the contemporary and lifestyle portfolio, represented the main drivers of growth for the year.” Safilo singled out Carrera, David Beckham, Tommy Hilfiger, Marc Jacobs, Boss, Kate Spade and Carolina Herrera as all playing “a significant role in growing the group across its key markets and strategic distribution channels.”
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In the fourth quarter, sales in North America decreased 7 percent, but were up 1.5 percent at constant exchange, supported by the positive performance of the wholesale business. Also, sales of Smith’s sports products in stores returned to growth, while Blenders remained negative in its direct-to-consumer channel. In 2025, North America was down 2.6 percent and up 1.8 percent at constant exchange.
In the quarter, sales in Europe edged down 0.1 percent, affected by lower volumes associated with a product supply agreement, the deconsolidation of the Lenti business sold in June 2025, and the phasing of deliveries to certain clients, anticipated in the third quarter. In 2025, revenue in the region was up 2.3 percent.
Europe showed a solid organic trend, up midsingle digit, driven by the continued progress of the prescription frames business in all the key markets.
Asia-Pacific slowed down after several quarters of growth, reporting a 17.4 percent decrease in sales, which translated into an 11.5 percent drop in constant currencies. Some markets in the company’s rest of the world division drove a quarterly recovery, up 3.9 percent at constant exchange, or a 0.1 percent gain at current exchange. However, in 2025, the Asia-Pacific area was up 1.3 percent and the rest of the world was down 10 percent.
Safilo touted “continued improvement in margins and strong cash generation” in 2025, which was attributed to “the mitigation actions implemented to counter the significant tariff pressures — in particular the price adjustments in North America and the progressive shift of sourcing outside China — combined with favorable price/mix dynamics.”
The fourth-quarter gross margin reached 61.9 percent of sales, up 240 basis points compared with the same quarter of the previous year. This led to closing the year with a gross margin of 60.9 percent, 120 basis points above 2024.
Margins on earnings before interest, taxes, depreciation and amortization for the fourth quarter came in at 6.7 percent, an improvement of 120 basis points compared with the 5.5 percent margin recorded in the fourth quarter of 2024. For full-year 2025, the EBITDA margin reached 10.8 percent, up 280 basis points versus 2024.
“For 2026, amid the ongoing challenges and complexities of the geopolitical and macroeconomic environment, which will continue to influence top-line growth opportunities, the group remains focused on its strategic drivers to develop the business both organically and through selective acquisitions,” said the company, which is led by chief executive officer Angelo Trocchia. “Safilo believes to be well-positioned to continue strengthening profitability and cash generation, consolidating its ability to create sustainable long-term value.”
In December, Safilo purchased 25 percent of vertically integrated eyewear company Inspecs Group for approximately 21.7 million pounds.
The year 2025 closed with a free cash flow of 55 million euros, including the net proceeds of 11.9 million euros from the disposal of Lenti completed in June 2025, and taking into account all investments.
As of Dec. 31, net debt stood 46 million euros, after completing the share buyback program finalized on Dec. 22 for a total amount of 18 million euros.
