Tariff refunds accounted for 2.1 points of Safilo’s Q3 gross margin gain

The refunds enter the gross margin through costs

Safilo recorded around €5 million of Q3 tariff refunds as a reduction in cost of goods sold. It attributed the other 3.2 points of the gross margin gain to price and mix effects and lower tariffs. Gross profit rose from €131.7 million to €148.0 million. Source 1

The company also published an adjusted view

Safilo’s adjusted EBITDA margin rose from 10.0% to 11.4% for the quarter. Its separate calculation excluding both one-time tariff refunds and additional investments gives 10.8%. That calculation removes two items together, so the gap from 11.4% is not the standalone effect of the refunds. Source 1

The nine-month comparison has a different sales direction

Sales rose 3.0% at reported exchange rates in the quarter but fell 2.5% across the first nine months. Nine-month gross margin still rose from 60.6% to 66.5%. The company reported about €25 million in refunds across the second and third quarters. Source 1 Source 2

Cash generation and margins use different measures

Free cash flow reached €24.6 million for the quarter, up from €20.7 million. For the first nine months it fell from €64.2 million to €61.0 million. EBITDA margin divides an earnings measure by sales. Free cash flow is a euro figure that reflects cash movements and investment. Source 1

Sources

• Safilo, 10 November 2026 trading update, economic and financial performance tables
• Safilo, third-quarter and nine-month 2026 results materials