Safilo Group SpA (0NJ5.L) Q1 2025 Earnings Report

Safilo Group S.p.A. reported a solid year-over-year improvement in profitability for QQ1 2025, but experienced a pronounced quarter-over-quarter revenue decline consistent with seasonality in the eyewear cycle. Revenue reached EUR 268.8 million, up 1.07% from QQ1 2024, while QoQ revenue dropped 41.72% versus the prior quarter (Q4 2024). The company posted gross profit of EUR 164.1 million and a gross margin of 61.05%, indicating strong product pricing and mix discipline despite weaker topline momentum. EBITDA stood at EUR 32.66 million (12.15% of revenue), and operating income was EUR 25.64 million (9.54% margin). Net income was EUR 20.86 million, delivering a net margin of 7.76% and EPS of EUR 0.050 (diluted EUR 0.050). The YoY improvement in profitability is notable (net income up 136.9% YoY; EPS up ~139.5%), suggesting some benefit from fixed-cost absorption, operating leverage, and potential mix effects, even as near-term demand shows volatility.

Key drivers include a favorable gross margin, disciplined cost management, and a diversified brand portfolio with exposure to owned and licensed names. However, the quarter’s sharp sequential revenue decline underscores seasonality and potential channel mix challenges that may pressure quarterly comparability. There is no forward guidance provided in the disclosed materials, limiting visibility into cadence of a rebound. Investors should monitor brand performance, geographic mix, licensing contributions, and any changes in working capital or capital expenditure as the company progresses through the year.