Italian apparel retailer OVS (BIT:OVS) reported first-half 2026 consolidated net sales of €877.4 million, an 10.7% increase year-over-year, and said margins expanded as a multi-brand turnaround strategy took hold.
EBITDA reached €114.3 million, up 12.3%, with the margin rising 19 basis points to 13.0%. Gross margin widened 149 basis points to 62.1% of revenue, adding €64.3 million in absolute terms. Operating profit rose 10.8% to €76.7 million, while net income climbed 7.7% to €49.1 million.
Organic net sales growth excluding Goldenpoint came in at 6.1%, outpacing the reference market's estimated 1.5% expansion. Organic EBITDA rose 17.5% to €114.1 million, with margins swelling 135 basis points to 13.8%.
The OVS banner generated €614.0 million in sales, up 6.1%, with EBITDA margins improving 110 basis points to 15.1%. Upim also posted €191.9 million in sales, up 6.1%, and saw its EBITDA margin expand 150 basis points to 11.9%. Stefanel recorded overall sales growth of 31%, including 11% like-for-like.
Goldenpoint, acquired and integrated since July 2025, exceeded 11% organic sales growth in the period and generated positive EBITDA of approximately €200,000, reversing a €4.2 million loss in the prior-year period. The company set a medium-term EBITDA margin target of 12–13% for the brand.
Stefano Beraldo, chief executive, described the Italian apparel market as "finally stable or slightly increasing" after roughly 24 months of decline. He noted that some customers visit OVS specifically for premium brands such as PIOMBO, treating them "comparably to luxury labels and waiting for new collection releases."
On the balance sheet, net debt fell by €53.6 million to €240.1 million on an adjusted basis. Leverage improved to 1.04x EBITDA from 1.41x, with the 12-month average at 1.14x versus 1.26x previously. Trade working capital declined €4.1 million to €205.4 million, and working capital intensity dropped 140 basis points to 11.2% of net sales.
Total capital expenditures rose to €46.3 million from €43.6 million, with €35.9 million directed toward new store openings and refurbishments and IT investment increasing to €7.7 million from €5.9 million. The global store network stood at 2,711 locations as of July 31, 2026, spanning 1,248 directly operated and 1,463 franchise outlets across the OVS, Upim, Goldenpoint, Stefanel, and kids-focused banners.
A flagship store in Dubai is targeting annual sales of €10–15 million, with potential profitability in its first year under favorable conditions.
Shareholder distributions totaled €44.1 million through dividends and buybacks—€33.9 million in dividends and €10.2 million in share repurchases, €7.8 million more than the prior-year period. Treasury shares held amounted to 13,220,430, representing 5.184% of share capital as of September 22, 2026.
Net cash flow before M&A, dividends and buybacks was negative €50.2 million, a €15.3 million improvement over the prior year's negative €65.5 million. Operating cash flow narrowed to negative €23.0 million from negative €39.0 million. Full-year cash generation is expected to exceed the €90 million recorded in fiscal 2025, potentially reaching above €100 million.
