This article first appeared on GuruFocus .
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Adjusted EBITDA improved significantly to approximately 13 million from 9 million in the same period last year, reflecting strong cost management.
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Operating cost savings of 19.1 million were achieved in the first half of 2026 through efficiency measures.
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Gross margin improved to 52.6% from 52.2% in the prior year, driven by better operational management and channel mix.
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Bank debt reduced to 95 million from over 100 million year-over-year, with a target of 40-45 million by year-end 2026.
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New product innovation, such as the Clima Sandal with ventilated cushioning technology, sold out 20,000 pairs quickly, indicating strong consumer demand.
Negative Points
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Sales declined 8.8% on a comparable basis, with an 11.4% drop in the same period, impacted by a challenging market.
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Retail channel sales fell 8.5%, partly due to reduced store traffic from macroeconomic and geopolitical conditions.
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Wholesale revenue decreased from 100 million to 88 million, driven by order campaign reductions and client rationalization.
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Digital wholesale platform sales dropped significantly by 8.6 million, due to market cleanup and reduced orders from Russia and key customers.
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The market remains tough with ongoing headwinds from extreme weather events and credit risks among clients, limiting recovery.
Q & A Highlights
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Q: On the evolution of the gross margin, do you see further room for expansion in the second half of the year? A: (Andrea Maldi, CFO) Yes, we are still seeing an improvement going through the end of the year. This is mainly driven by the mix effect, as we are counting on a greater weight of the direct-to-consumer channel, including the website. Additionally, we expect to get more efficiency from the full winter campaign, where the cost of goods is normally higher. Our improved purchasing methods are expected to give another boost of approximately 0.5 basis points.
Q: Can you provide an estimate of the one-off costs budgeted for this year? A: (Francesco Di Giovanni, CEO) One-off costs are estimated at approximately 3.8 million for the full year 2026.
Q: Can you comment on July trends and any preliminary feedback on the spring/summer 2027 collection? A: (Francesco Di Giovanni, CEO) The market is still tough, though we are facing a slight improvement, not enough to recover the loss from the first half. For the spring/summer 2027 collection, we are seeing significant improvement across almost all lines, though there is some reflection on women's sneakers. We are also rationalizing sales channels and clients, exiting those with high credit risk, as the market is impacting our clients' creditworthiness.
Q: What is the outlook for full-year 2026 sales and profitability? A: (Andrea Maldi, CFO) We expect a decline in sales in the high single-digit range, estimating about 550 million in sales for the full year. Adjusted EBITDA is expected to be in the range of 30 to 33 million euros. We are confirming EBIT estimates in the area of 2% to 3%. The dramatic improvement is on the financial position, with net debt expected to close in the range of 40 to 45 million euros.
Q: How is the company managing its working capital and inventory? A: (Andrea Maldi, CFO) Operating working capital as of June 2026 is at 21.9%, improving from 22.3% in December 2025. The improvement is driven by efficiency in inventory, with better aging, quality, and quantity of stock. We are using a new approach to purchasing, resulting in better sell-through and cash flow management. Bank debt as of June 2026 is 95 million euros, 5 million lower than the same period in 2025.
Q: What is the status of the business plan review? A: (Andrea Maldi, CFO) We are still working on finalizing the review of the business plan, which covers the years 2026, 2027, 2028, and 2029. We expect to be ready to make further communication on this point in early September.
Q: How is the company's new technology product, the Clima Sandal, performing? A: (Francesco Di Giovanni, CEO) The Clima Sandal, which features a new ventilated cushioning system, was very successful. We distributed approximately 20,000 pairs in our top shops worldwide, and it sold out in a matter of weeks. This product is unique due to its comfort and lightness, offering active ventilation of the feet while walking.
Q: What are the key drivers behind the improvement in adjusted EBITDA? A: (Francesco Di Giovanni, CEO) The adjusted EBITDA improved to approximately 13 million euros for the period, compared to 9 million in the same period last year. This is a result of significant cost structure revisions, generating savings of approximately 19.1 million in operating costs in the first half of 2026. Efficiency measures in product processes, procurement, and sourcing strategies have also contributed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
