PADUA, Italy—Safilo Group S.p.A. (SFLG.MI) has reported preliminary key performance indicators for the financial year ended December 31, 2024. In 2024, Safilo's preliminary net sales amounted to €993.2 million, a decrease of 2.3 percent at constant exchange rates and 3.1 percent at current exchange rates compared with 2023. According to the company, the decline is due to the end of the Jimmy Choo license. Net of this impact, the trend in sales was slightly positive, the company stated, driven by the resilience of the European business. The North American market declined, however, marked by the disappointing performance of sunglasses and the sports business.

In the fourth quarter of 2024, sales performance improved compared with the previous quarters of the year, showing a decline of 1.1 percent at constant exchange rates and 1.6 percent at current exchange rates, to which the recovery of emerging markets contributed, the company said. Excluding the residual effect of Jimmy Choo exit, the quarter was positive by nearly 2 percent.

Sales in Europe remained stable compared with Q4 2023 (-0.1 percent at constant exchange rates), while in North America, sales in the fourth quarter were down 4.6 percent at constant exchange rates, impacted by decreased 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, Safilo reported. The performance in North America also reflected the still subdued performance of sunglasses in the wholesale channel, the company noted, which nevertheless showed signs of improvement in the last weeks of the year.

The fourth quarter of 2024 saw reported growth for Smith's sports business, which 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 favourable comparison base.

In the fourth quarter, the Asian and Pacific markets grew by 12.9 percent at constant exchange rates, while the “Rest of the World" markets grew by 2.4 percent at constant exchange rates.

Sales performance in 2024 by geographical area saw Europe growing by 1.6 percent at constant exchange rates, while the North American market recorded a decline of 5.2 percent at constant exchange rates. For the full year 2024, revenues in Asia and Pacific and the Rest of the World decreased by 2.1 percent and 5.9 percent, respectively at constant exchange rates.

The company reported that the brand portfolio in 2024 was strengthened with the acquisition of the perpetual license for Eyewear by David Beckham. Carrera and David Beckham represented the main strengths of the year, achieving double-digit growth in the last quarter of the year. These were complemented by the positive results of Tommy Hilfiger, Marc Jacobs and Carolina Herrera, which the company said delivered solid progress in their key reference markets.

On a preliminary basis, the gross margin for the year was 59.7 percent of sales, an improvement of 100 basis points compared with the adjusted level recorded in 2023. In the fourth quarter of 2024, gross margin equalled 59.5 percent.

The company also reported positive free cash flow of €16.7 million. The group’s net debt for the year, which takes into account the completion of its share buyback program for €11.8 million, remained stable compared with 2023, at €82.7 million.

Looking to 2025, Safilo said it remains focused on strengthening and growing its brand portfolio, aiming for an increasingly targeted use of resources and investments. The company stated that the economic and financial improvement achieved in 2024 represents a “solid basis to enable Safilo to address the opportunities of the New Year.”

The company said that its 2024 annual results will be approved by the board of directors on March 11, 2025.