OVS: The Quiet Compounders Don't Need Tariff Refunds
While the market obsesses over tariff recoveries, OVS posts 11% sales growth, turns Goldenpoint profitable, and opens Dubai at budget.
OVS.MI · Earnings Call · 2026-09-24
What Changed: Women's Wear and a Dubai Miracle
Stefano Beraldo opened the call with characteristic understatement: “It has been a good quarter, more or less in line with the first quarter.” — Stefano Beraldo, CEO · 2026-09-24 But the numbers tell a louder story. Net sales rose 11%, with women segment growth of 5% year-to-date, men up 2%, and kids flat — a resilient mix given the entry of aggressive value players. The CEO credited a multi-year shift:That pivot is lifting sales density and average ticket, with traffic up 2% and conversion also contributing. New brand extensions like Utopja (growing 15-20% LFL) and Altavia ski apparel are pulling in younger customers, while Les Copains commands the highest sales density in the assortment. International expansion is no longer a side show. Dubai opened three weeks ago and is already 100% to budget. Beraldo called it a potential “positive margin in Dubai starting year one, which to me is like miracle.” — Stefano Beraldo, CEO · 2026-09-24 The 2,500 sqm store carries a 40% markup versus Italy, and management sees €10-15m in annual revenue. Meanwhile, the second store in India opened, and the company is ready to open 200 Shaka stores in Italy if it can negotiate another 300bps of margin from the Korean beauty partner.The most important element is that OVS is still underrepresented in the segment of the women compared to the market... we are continuing season after season to give more space within the store to the women to the detriment of the kids.
Goldenpoint: From Drag to Driver
The Goldenpoint acquisition, consolidated for only one month last year, is now contributing a positive €0.2m EBITDA versus a -€4.2m loss a year ago. CFO Francesco Leoncini projects €3-4m full-year EBITDA and a medium-term target of 12-13% margin, in line with the group. The cash generation story is equally compelling: first-half cash generation improved by €15m, driven mostly by higher EBITDA, and net debt fell €54m year-over-year despite dividends and buybacks. Management now expects “If last year was about EUR 90 million, we believe that this year it might be EUR 100 million maybe.” — Luca Bacoccoli, Analyst · 2026-09-24 That free cash flow will fund a dividend and opportunistic buybacks — Beraldo noted the company bought back shares after a recent unexplained price drop. Costs remain in check. The 5% operating cost increase breaks down as 1.5% inflation (national labor contract), 2.5% perimeter (Goldenpoint store costs), and 1% marketing. The hedging policy locks in favorable euro-dollar rates through Spring/Summer 2027, with 50% of Fall/Winter 2027 covered. As the CFO put it, no bounce back of tariffs, U.S. — a stark contrast to the global tape, where tariff refund is a hot theme for CBRL, COST, and MLKN. OVS operates in a different world: the Italian apparel market is finally stable, and OVS is gaining share.The Macro Contrast: No Tariff Clouds Here
Global keyword data is saturated with tariff-recovery chatter — Tariff refund ranked #1 in 20262 with a momentum of 422, and Net tariff refunds hit #3 in 20263. Yet OVS's CFO explicitly said:For OVS, the FX tailwind is a modest €8m visible in H1, and hedges ensure next year is at least neutral. The company's current trading is flattish against a warm September, but management expects a weather-driven pickup in October/November — a seasonal nuance that would be a red flag for most retailers but is on-brand for a management team that has consistently grown LFL for five years.There are not organic element in the margins that are represented in H1 2026. No bounce back of tariffs, U.S., just to name one element that other companies in the industry are reporting now.