Release Date: June 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OVS SpA (FRA:0OV1, Financial) reported a positive start to the second quarter with single-digit growth, despite unfavorable weather conditions.
- The company is experiencing positive tailwinds, such as a weak dollar and reduced raw material costs, which are expected to contribute positively to the gross margin.
- The acquisition of Golden Point is expected to enhance OVS SpA's market position, with plans to fully control the company and capitalize on its potential.
- The women's wear category, particularly the Leopan collection, has shown strong performance, contributing to sales growth.
- OVS SpA has a stable net financial position, with a leverage ratio around 1.34, providing flexibility for cash management and future investments.
Negative Points
- The first quarter was weaker than expected, with a slight decline in profit before tax compared to the previous year.
- Franchising sales showed a slight decline due to phasing effects, impacting the performance of the OPA brand.
- The company faced challenges with certain product categories, such as leggings, which did not meet expectations.
- Golden Point's performance was slightly below expectations, affecting the overall sales expansion forecast.
- The first quarter saw increased labor and energy costs, impacting overall profitability.
Q & A Highlights
Q: Can you provide some performance figures for Golden Point in 2025, considering the performance this year is slightly below expectations?
A: The year 2025 started a bit lower than expected, but we anticipate ending the year with sales in line with last year's results, around €100 million. The summer season has started well, and we expect a positive outcome driven by strong performances in underwear and nightwear, despite some challenges with leggings. (Stefano Beraldo, CEO)
Q: What are the capital expenditure requirements for Golden Point's network expansion?
A: Over the next two to three years, we expect to spend €15 to €20 million on refurbishing stores, which should lead to increased sales. This investment will be spread over a three-year period. (Stefano Beraldo, CEO)
Q: Can you clarify the seasonality of Golden Point's profitability?
A: Typically, the first quarter is challenging, while the second quarter is stable. The third quarter is very strong, and the fourth quarter benefits from Christmas sales. We expect to improve performance in the second half, particularly in nightwear, which is strong in the winter season. (Stefano Beraldo, CEO)
Q: Regarding the acquisition of Golden Point, does the €25 to €30 million additional debt include payment and working capital requirements?
A: The net financial position includes all working capital needs, and we do not anticipate significant movements in working capital. The acquisition price is favorable compared to previous estimates and is manageable within our financial structure. (Francesco, CFO)
Q: How do you expect sourcing and sales density to impact Golden Point's profitability in 2026?
A: The main driver of profitability will be like-for-like growth in key segments such as socks, nightwear, and underwear. Additionally, we expect gross margin improvements due to favorable external conditions and sourcing efficiencies. (Francesco, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
