Safilo Reports Stronger Margins and Improved Cash Flow in 2024
MILAN — Safilo Group on Tuesday released preliminary 2024 key performance indicators, which showed stronger margins and improved cash generation despite the challenging market.
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 impacted by a lackluster performance in sunglasses and sports.
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In the year, gross margin improved to 59.7 percent of sales, up 100 basis points. Adjusted earnings before interest, taxes, depreciation and amortization improved by 40 basis points to 9.4 percent of revenues.
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.
The fourth quarter showed an acceleration, as sales were down 1.6 percent but, net of Jimmy Choo, they rose almost 2 percent.
At constant exchange rates, revenues in Europe in the fourth quarter were stable compared to the same period in 2023, while North America registered a 4.6 percent decrease. This was 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 did show signs of improvement in the last weeks of the year.
Smith on the other hand 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.
In the year, and at constant exchange rates, Europe grew 1.6 percent, while the North American market recorded a decline of 5.2 percent. Revenues in Asia-Pacific and the Rest of the World decreased by 2.1 and 5.9 percent, respectively.
In 2024, Safilo acquired the perpetual license for Eyewear by David Beckham, replacing a previous contract that was due to expire at the end of 2030 and marking yet another approach to the production and distribution of branded eyewear. David Beckham and Carrera were the main strengths in the year, growing at a double-digit clip also in the last quarter. Eyewear by Tommy Hilfiger, Marc Jacobs, and Carolina Herrera also delivered solid progress.
The free cash flow was positive and amounted to 16.7 million euros, including the 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.
In a statement issued after the end of trading in Milan, where Safilo is publicly listed, the company said that looking at 2025, it “remains focused on strengthening and growing its brand portfolio, aiming for an increasingly targeted use of resources and investments.”
Other brands produced under license range from Dsquared2, Etro, and Isabel Marant, to Missoni, Moschino, and Stuart Weitzman, to name a few. In addition to Carrera and Smith, Safilo owns the Polaroid, Blenders, Privé Revaux and Seventh Street brands. On Tuesday Polaroid signed a global partnership with the ATP tennis tour.
“The economic and financial improvement achieved in 2024 represents a solid basis to enable Safilo to address the opportunities of the new year,” concluded the statement.
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