MILAN — Growth in Europe last year helped balance the challenges seen in North America and Safilo Group touted a stronger, more stable and balanced portfolio as it reported strong growth at Carrera, David Beckham, Tommy Hilfiger and Carolina Herrera.
In the 12 months ended Dec. 31, revenues amounted to 993.2 million euros, down 3.1 percent compared with 1.02 billion euros in 2023. The decrease was attributed to the end of the license with Jimmy Choo, which went on to ink a 10-year agreement with EssilorLuxottica. Net of this, sales were slightly positive, driven by the solidity of the European market, while business in North America was penalized by an election year and the climate of uncertainty that affected business and consumer confidence.
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The global performance improved in the fourth quarter as sales decreased 1.6 percent to 235.8 million euros. Net of Jimmy Choo, revenues were up 2 percent in the period.
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Group net profit amounted to 34.2 million euros, more than doubling from 14 million euros in 2023 mainly due to the effect of the valuation of the option liability on minority interests.
“[The year] 2024 was a year marked by a complex macroeconomic context, which affected business and consumer confidence, influencing demand dynamics in various sectors, including eyewear,” said chief executive officer Angelo Trocchia during a conference call with analysts at the end of trading in Milan on Tuesday. “In the face of market challenges, we proved our resilience and adaptability, consolidating our competitive edge through dynamic brand portfolio management and targeted investments. Our steadfast dedication to the quality of services offered to our customers and consumers remains the cornerstone of our strategy.”
He touted the “decisive action on the levers within our control,” which led to improvements in gross industrial margin nearing 60 percent of sales, and an adjusted EBITDA margin that increased to 9.4 percent.
Chief financial officer Michele Melotti said that prescription frames outperformed sunglasses in the year.
“Looking to 2025, the complexity of the macroeconomic and geopolitical landscape, and the related increasing challenges, will continue to impact the markets in which we operate, making it particularly difficult to predict business trends in the coming months,” said Trocchia. “In this context, we remain focused on strengthening our partnerships, maintaining agility and operational flexibility, with the goal of seizing opportunities to return to revenue growth. Our commitment to continuous margin improvement and consistent cash generation remains steadfast.”
Adjusted earnings before interest, taxes, depreciation and amortization totaled 93 million euros, up 1.1 percent on 2023 and improving by 40 basis points to 9.4 percent of revenues.
The adjusted operating profit totaled 52.6 million euros, up 6.1 percent compared with 2023.
The improvement in margins was attributed to higher industrial efficiency achieved with the reorganization completed in 2023, and the positive price/mix effect on sales recorded throughout the year.
Marc Jacobs, Dsquared2, Etro, Isabel Marant, Missoni, Moschino and Stuart Weitzman are among the brands also produced under license by Safilo. In addition to Carrera and Smith, Safilo owns the Polaroid, Blenders, Privé Revaux and Seventh Street brands. In January, Polaroid signed a global partnership with the ATP tennis tour. Trocchia said that 2024 was “a phenomenal year” for the David Beckham eyewear and a first monobrand store is in the pipeline in Mykonos, Greece. This is not owned by Safilo, noted Trocchia, and there are no plans for Safilo to expand in retail.
With the perpetual license of Eyewear by David Beckham inked last year, the group’s owned brands represented around 50 percent of total sales.
In January, the company announced the renewal of the Dsquared2 and Under Armour licenses. With the renewals that took place last year, with Moschino and Missoni for example, Safilo has “secured 80 percent of our licensed portfolio to 2030,” said Trocchia.
In 2024, sales in North America amounted to 428.7 million euros, a decrease of 5.3 percent compared with 2023. Smith’s performance was impacted by an unfavorable environment for the sports sector, with a delayed start to the ski season and sunglasses sales remaining largely weak due to cautious purchasing behavior from key wholesale channels.
The prescription frames business continued to show solid growth, supporting brands with greater exposure to this category. Blenders showed a lackluster performance in the last quarter, while Smith continued to progress in the direct-to-consumer channel and saw a recovery in physical stores, supported by a strong start to the 2025 ski season and a favorable comparison base. Trocchia said that Carrera’s performance last year was “a standout” and that the U.S. has become the brand’s first market, adding that the women’s segment was “incredibly successful” and it remains “a major focus” in 2025.
Asked about U.S. tariffs, Melotti said “we are closely monitoring” the situation. “We have been diversifying our supply chain out of China so we are better positioned. It’s a work in progress and we have to see how things settle, it’s premature to quantify the impact.”
Responding to a question about current trading in the U.S., Trocchia said that January and February have shown “positive signs,” as did the last quarter last year, but admitted there is a “level of uncertainty now that is making consumers more nervous.”
In 2024, sales in Europe edged up 0.6 percent to 414.2 million euros, with France standing out as one of the most dynamic markets, and the Italian market also performed well, while Central and Eastern European markets continued to see strong growth, with Poland and Turkey showing particularly positive results and Germany benefiting from the solid performance of the internet pure players channel. Among the group’s product categories, prescription frames continued to outperform sunglasses, demand for which in Europe was partly influenced by adverse weather conditions in May and June.
Sales in Asia-Pacific decreased 2.3 percent to 58.6 million euros, with China standing out as the main positive driver. In particular, Tommy Hilfiger, Ports and Polaroid drove growth, consolidating their position and contributing positively to the performance of the area. The year was more complex in the Southeast Asian markets, where the contraction in sales at distributors affected overall performance. In the last quarter, sales in Asia-Pacific were up 14.4 percent driven by the recovery of the Chinese market and the positive reception of the new collections presented at the Beijing eyewear fair.
Sales in the Rest of the World decreased 8.3 percent to 91.8 million euros, impacted by a slowdown in Latin America mainly due to weakness in the travel retail channel. Brazil, however, showed signs of recovery, particularly in the last quarter, thanks to greater stability in domestic demand.
The free cash flow was positive and amounted to 16.7 million euros, compared with 29.1 million euros in 2023. In 2024, cash flow for investments grew to 48.9 million euros, mainly due to Safilo’s investment to acquire the perpetual license for Eyewear by David Beckham — a figure that was not disclosed.
Net debt, which also takes into account the completion of the share buyback program for 11.8 million euros, remained stable at 82.7 million euros.