Smith Leads the Way as Safilo Navigates a Turbulent 2025

Italian eyewear giant Safilo closed out 2025 with a tale of two currencies — solid underlying growth undercut by a weakening U.S. dollar — but through the headwinds, one brand stood out as the clearest engine of progress: Smith.

Safilo once again moved close to the €1 billion turnover mark, closing 2025 at €983.4 million, down 1% at current exchange rates but up 1.8% on a constant currency basis. Chief Executive Officer Angelo Trocchia described 2025 as a year in which Safilo demonstrated its ability to grow and create value, "even in a global environment that remained complex, uncertain, and often volatile."

Of all the brands in Safilo's sprawling portfolio — which spans licensed names like Tommy Hilfiger, Marc Jacobs, and BOSS alongside home brands like Carrera and Polaroid — it was Smith, the Sun Valley, Idaho-based sports optics brand, that emerged as the standout performer.

Safilo singled out Smith's sports products in the United States, alongside its contemporary and lifestyle portfolio, as the main drivers of growth for the year. Trocchia noted that organic growth was fueled by Smith, alongside flagship brand Carrera and David Beckham, as well as solid mid-to-high single-digit increases across core licensed brands.

The brand's trajectory was particularly impressive early in the year. In the first quarter, Smith recorded double-digit growth both in sports stores and in the direct-to-consumer channel, buoyed by a favorable ski season, further consolidating its market leadership in North America's winter sports segment.

That momentum continued through the summer. In the third quarter, Smith delivered solid growth in its direct-to-consumer business, benefiting from positive demand and effective online engagement. Shipment timing provided a modest speed bump — sales to physical sport shops were affected by the ongoing recovery of sport product shipments from China — but the brand's underlying demand remained healthy.

By year's end, even as broader conditions in North America softened, Smith was holding the line. Sales of Smith's sports products in stores returned to growth in the fourth quarter, a meaningful signal given that the final quarter was among the most challenging of the year for the region.

North America, where Smith is most dominant, recorded a difficult fourth quarter on paper — sales fell 7% at current exchange rates — but rose 1.5% at constant exchange rates, supported by solid wholesale performance. For the full year, the region was down 2.6% in reported terms but grew 1.8% at constant exchange.

The contrast between the two figures underscores a recurring theme in Safilo's 2025 results: the group was executing well operationally, but a strong euro relative to the dollar made that execution harder to see on the income statement.

Blenders, Safilo's direct-to-consumer value sunglasses brand, remained a pressure point. Blenders remained negative in its direct-to-consumer channel as competition intensified in the value-for-money eyewear segment online — a stark contrast to Smith's more resilient performance.

Despite the revenue headwinds, Safilo's profitability picture improved. EBITDA reached double-digit margins for the full year supported by a favorable mix effect and continued operating discipline. In the first half alone, gross margin climbed to 61.1%, up 110 basis points from the same period a year earlier.

The year closed with free cash flow of €55 million, including net proceeds of €11.9 million from the disposal of Lenti, a lens manufacturing subsidiary sold in June 2025, and taking into account all investments. Net debt stood at €46 million as of December 31, after completing a share buyback program finalized in late December for a total of €18 million.

In a move signaling confidence in the group's direction, Safilo in December purchased a 25% stake in vertically integrated eyewear company Inspecs Group for approximately £21.7 million.

For a group with Smith at its commercial core, the health of the outdoor and snow sports market will remain central to Safilo's fortunes. The brand has now built a track record of growing in good snow seasons and holding its own in difficult ones — a resilience that gives Safilo a dependable anchor as it works to rebalance its portfolio and push toward that elusive €1 billion revenue threshold.