Safilo posts Q3 gains on North America recovery and renews CEO to 2029

Safilo Group grew third-quarter sales 3 percent to €227.5 million, up from €220.8 million in the same period of 2025, as a North America recovery offset softer conditions in Europe. The Italian eyewear maker also renewed chief executive Angelo Trocchia's contract for three more years.

The renewal takes effect Dec. 31 and keeps Trocchia, who took the role in 2018, in place through most of the decade. It was confirmed alongside results on a Tuesday conference call with analysts, where Trocchia spoke of a "clear improvement" over a second quarter he described as a slowdown.

The gains were led by prescription frames returning to growth and strong performances from Carrera, Smith, Kate Spade, David Beckham and Boss eyewear. Sunglasses showed a clear improvement in North America, supported by stronger trends in the group's direct-to-consumer channel.

By geography the quarter split unevenly. North America revenue rose 7.7 percent to €104.4 million, almost 46 percent of the total. Europe fell 3.3 percent to €87.9 million. Asia-Pacific rose 2.6 percent to €14.2 million, and the Rest of the World climbed 9.8 percent to €21.1 million.

Trocchia framed the quarter as a turning point. "The third quarter marked an improvement in our sales trajectory, confirming the positive signs we had started to see toward the end of the first half and into July," he said. North America, he added, showed clearer signs of recovery as market conditions stabilised in certain channels.

Europe proved harder. "The environment in Europe remained more challenging for sunglasses in some key markets," Trocchia said. Within the continent, Italy, Spain, Portugal and Greece were the best performers, while France and Germany were slower. China returned to growth in the quarter and India also recovered.

Current trading is uneven again. October was broadly in line with expectations, Trocchia said, but North America saw some moderation after the third quarter ended, while Europe tracked the previous two quarters. That leaves the group carrying momentum into a fourth quarter it has already flagged as investment-heavy.

Margins and cash strengthen

Profit improved faster than sales. Adjusted EBITDA reached €26 million in the quarter, up 17.3 percent from €22.1 million in 2025. Gross profit rose 12.3 percent to €148 million from €131.7 million, helped by favourable price and product-mix effects and a positive year-on-year impact from lower tariffs.

Trocchia said the company "delivered further progress in margins and continued cash generation, providing us with the flexibility to continue investing behind our strategic priorities." Free cash flow reached €24.6 million, including roughly €3 million of tariff refunds, against €20.7 million in the same quarter last year.

Over the nine months, adjusted EBITDA stood at €112 million, up 32.7 percent from €84.4 million in the first nine months of 2025. The nine-month top line was weaker, at €739.4 million, down 2.5 percent from €758.4 million a year earlier, a reminder that the recovery is only one quarter old.

The year to date shows how far the geography shifted. Nine-month sales in Europe fell 1.7 percent to €328.4 million, while North America decreased 2.5 percent to €310 million. Asia-Pacific dropped 11.2 percent to €39 million and the Rest of the World edged down 1 percent to €62.1 million.

The balance sheet swung into positive territory. Safilo's net financial position stood at a positive €10 million on Sept. 30, compared with net debt of €46.1 million at the end of December 2025. That turnaround, alongside the tariff refunds, strengthens the case for further acquisitions, which the group signalled remain a priority.

Acquisitions and smart glasses

M&A is still on the table, though nothing specific is near. Earlier this year Safilo acquired Spy+Serengeti and built a stake of almost 30 percent in Inspecs Group. Chief financial officer Michele Melotti said acquisitions "remain a priority for capital allocation," including next year, and the group has started integrating recent purchases into its network.

Trocchia, asked separately about dealmaking, said there are "no specific M&A scenarios" at the moment. He added that the additional resources being deployed behind core brands and digital infrastructure "will become more significant in the fourth quarter," aimed at brand visibility and supporting customers in an uncertain market.

On smart glasses, Trocchia said development is "progressing very well as per our plans," with a launch expected "by summer time." He described forming strong partnerships with technology companies as "crucial, because AI is the discriminator." The group's investment push is being timed to land in the fourth quarter and beyond.

Safilo is listed in Milan and operates as one of the world's largest independent eyewear groups, producing and distributing frames under owned brands as well as licensed names such as Kate Spade, David Beckham and Boss. Its portfolio spans prescription frames, sunglasses and, increasingly, performance and sports eyewear through Carrera, Smith and the newly acquired Spy.

Trocchia's renewed three-year term, running to late 2029, gives the strategy continuity as the company spends behind its own brands and digital infrastructure rather than relying on licence renewal cycles alone.

Safilo has not set out a full-year outlook in figures, but the direction is confirmed: a loss-making nine-month top line turning on a stronger third quarter, cash generation funding investment, and a chief executive now contracted through the end of the decade to see it through.

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