Italian apparel retailer OVS said consolidated net sales rose 11% to about EUR 900 million in the first half of 2026, with the group moving toward an annual target of EUR 1 billion per semester.
Like-for-like sales grew 3% at both OVS and its Upim chain, while organic growth within the existing perimeter added another 3%, bringing total organic sales growth to 6%, outpacing the broader Italian market's estimated 1.5% rise.
Consolidated EBITDA increased by EUR 12.5 million, with the EBITDA margin reaching 13% of revenue, or 13.8% excluding Goldenpoint. OVS's own EBITDA margin was 15.1%, while Upim's improved to around 12%, up from roughly 10% two years ago.
The Goldenpoint acquisition, which began consolidating on July 1 of the prior year, contributed positive EBITDA of EUR 200,000 over the six-month period compared with a EUR 4.2 million loss in H1 2025. Management set a medium-term margin target of 12% to 13% for Goldenpoint and forecast full-year EBITDA of EUR 3 million to EUR 4 million.
Gross profit margin over the trailing twelve months stood at 60.96%, with the organic growth margin improving more than 100 basis points in the first half.
Net debt fell by EUR 54 million year-over-year, bringing the leverage ratio to between 1.0x and 1.1x EBITDA. Full-year free cash flow is expected to exceed EUR 100 million, up from EUR 90 million last year.
The company has been expanding its premium positioning. CEO Stefano Beraldo noted that some customers now visit OVS primarily for its PIOMBO brand, describing the perception as comparable to a luxury label. He added that more shoppers are choosing OVS over Zara, calling the group an alternative for many customers.
Internationally, OVS opened a second small store in Trento, its second location in India during the first semester, and a store in Dubai in the third quarter. The Dubai location is expected to begin contributing in 2027 and perform in line with budget, generating EUR 10 million to EUR 15 million in annual sales with upside potential.
Beraldo said the Italian apparel market, after approximately 24 months of continuous decline, is now stabilizing or slightly increasing.
OVS shares were up about 2.88% on the day of the call. The stock has returned 40% over the past year and 31.76% over the past six months, with a market capitalization of about $1.58 billion. The dividend yield stands at 2.52%, having been raised for five consecutive years.
