Safilo Stock Surges on Profitability Beat and U.S. Tariff Refund

Shares of Safilo (SFLG.MI) surged more than 12% after the Italian eyewear company reported a significant improvement in first-half profitability and a stronger balance sheet, driven by both operational gains and a one-time customs duty refund.

Profitability Outshines Revenue Dip

In its first-half 2026 financial results, Safilo announced a striking turnaround in profitability despite a modest decline in sales. The company's performance was highlighted by several key figures:

• Adjusted net profit climbed nearly 47% to €49.4 million.
• Adjusted EBITDA margin expanded by more than five percentage points to 16.8%.
• Net revenues were €512 million, a decrease of 1.9% at constant exchange rates.

CEO Angelo Trocchia noted that while demand softened in the second quarter, particularly for sunglasses, key brands like Carrera, Smith, and David Beckham maintained solid momentum. He also cited early signs of stabilization in June and expressed greater confidence in the outlook for the second half of the year.

Tariff Refund and Balance Sheet Strength

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A significant contributor to the bottom line was a one-time benefit of €22.2 million from refunded U.S. import duties paid in prior periods. According to the company, €20 million of this amount flowed directly through the income statement.

Beyond the windfall, Safilo's underlying financial health showed marked improvement. The company generated free cash flow of €36.4 million in the first half, allowing it to drastically reduce its net debt position to just €5.4 million. On a pre-IFRS 16 basis, this translated to a net cash position of €29.6 million.

Market Reaction

The strong results propelled Safilo's stock up 12.4% to trade at €1.956, pushing it toward the upper end of its 52-week range. The move was a standout performance in the broader Italian market, with the FTSE MIB index gaining only around 0.5% at the open, underscoring the company-specific nature of the news.