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OVS SPA reported solid financial performance for the first quarter of 2025, highlighted by a 6% increase in net sales and improved profitability metrics. The company maintains impressive gross profit margins of 59.34% and trades at an attractive P/E ratio of 14.96x relative to its growth potential. Despite these gains, the company’s stock saw a 5.2% decline, reflecting investor concerns over broader market challenges and a competitive landscape. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value, though it maintains a "GOOD" overall financial health score. The earnings call detailed advancements in product innovation and international expansion, alongside strategic initiatives aimed at sustaining growth.
Key Takeaways
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- OVS SPA achieved a 6% rise in net sales for Q1 2025.
- EBITDA increased by €13 million year-over-year.
- The stock declined by 5.2% following the earnings announcement.
- New product launches and international franchise agreements are driving growth.
- The company is capitalizing on market exits by competitors like Benetton.
Company Performance
OVS SPA demonstrated robust growth in the first quarter of 2025, with net sales rising by 6% compared to the previous year. This growth was supported by a €13 million increase in EBITDA and a 91 basis point improvement in gross margin. The company continues to outperform the market, benefiting from strategic positioning in the bridge and premium segments, as well as the market exit of competitors like Benetton.
Financial Highlights
- Revenue: €442.35 million (forecast)
- EBITDA: Increased by €13 million YoY
- Gross Margin: Improved by 91 basis points
- Net Result: Grew by approximately €2 million
Outlook & Guidance
OVS SPA remains optimistic about its prospects for 2025, with expectations for continued growth in EBITDA and cash generation. The company plans to open 10-20 standalone beauty stores and anticipates a potential €30 million sales recovery from weather normalization. The tax rate is expected to stabilize around 26%, with a possibility of reducing to 24%.
Executive Commentary
Stefano Humberaldo, CEO, emphasized the company’s innovative capabilities, stating, "We continue to demonstrate that we have the power to generate ideas and almost always successful ideas." Francesco Rinciuri, CFO, highlighted the importance of the beauty department, noting, "Beauty is the most important project that we have been able to create and generate in the last five years."
Risks and Challenges
- Competitive Pressure: The mid-market segment is under strain, with challenges from stable competitors like Inditex.
- Economic Conditions: Consumer spending trends could impact sales.
- Market Volatility: Stock price fluctuations may affect investor sentiment.
- International Expansion: New franchise agreements in Mexico and Japan present both opportunities and risks.
Q&A
During the earnings call, analysts inquired about the potential advantages from US tariff situations and the strategy behind the Golden Point acquisition. The management also detailed plans for expanding the beauty department and addressed concerns about consumer spending trends.
Full transcript - OVS SPA (OVS) Q4 2025:
Conference Operator: Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the OBS Full Year twenty twenty four Financial Results. As a reminder, all participants are in a listen only mode. After the presentation, there will be an opportunity to ask questions.
At this time, I would like to turn the conference over to mister Stefano Humberaldo, CEO. Please go ahead, sir.
Stefano Humberaldo, CEO, OBS: Hello. Good morning to everybody, and thank you for attending this conference relating to the full year twenty four results. I will start with a general overview. I think that we had, again, a very good year, which has been characterized by a difficult start because of a very negative weather condition, which affected the as as already been reported the the first half of the year. And in spite of this, we end up with the first half, which has been positive, and the second half, which has been very, very stronger, bringing total sales to more than 6% versus last year, mostly generated by like for like and merchandising initiatives, basically.
I want to mention that some of the of those initiatives. Innoviazza, Piombo is achieving a material turnover of more than 100,000,000, approximately 120,000,000. Piombo grew by 4% versus last year, and we are introducing new initiative regarding Pyeombo, like Pyeombo Tech and Pyeombo Contemporary, which are generating expectations for a possible enlargement of the size of BioMosays in the next coming quarters. Another initiative, which has been very positive, has been the one dedicated to the younger generation like b angel. In b angel, we had an important growth, approximately 50% of growth in ’24 compared to ’23.
More space, more merchandising, and even higher sell through, which means that the initiative is very solid and generating good cash margin. Also, Altaria and Utopia are the two initiatives, which the first of of them, which started basically in 2024, and Utopia is in the second season. Both these initiatives are generating solid growth and are attracting, and this is even more important, new customers, people which are looking for more sporty and outdoor garments and generations that with Utopia. Also, it’s worth mentioning that they continue support to the growth and to the to the introduction of our brand to new customers generated by the beauty department. The beauty department inside the of the asset store is becoming an important part of the business, accounting now for more than 100,000,000.
The growth in year twenty four has been about 20%, and we expect this growth to continue to continue at high single digit, maybe low double digit growth also in 2025. Thanks to new initiative improvements in the merchandising. This segment is continuously attracting new customers, generating also important cross selling opportunity in favor of the woman segment, by the way, is for the third consecutive year, the portion of our business which is growing the most. I want to take opportunity also to mention the result of Lecopen in the beginning of the year ’25. We introduced Le CoPen Innovia with the spring summer season, And the initial results are more than encouraging, are very solid.
In this moment, we believe that based on the first couple of months of sales, this initiative has been another success and will will have the potential to achieve the same sales of Pyongbo. Obviously, Pyongbo is also dedicated to men when Lekopen is only women. So, basically, we expect that from Lekopen, we can achieve in 2025 probably 40,000,000 sales and in the future, even more. Couple of words about international. We we decided to mention even in the press release the one small reference to the international activities, which are growing either in term of top line.
We had approximately a plus 15% in the top line entirely generated by like for like. We are cleaning a bit our network and focusing on the most performing store and starting operating in new countries with the franchising partner. It was mentioned a new agreement that we had that we had with Mexico, a new agreement that we have with Japan. Two country where two of the biggest local players decided to start working with OBSE and with some of our brand on the basis of a wholesale, basically, agreement. So, basically, we don’t enter in CapEx or or rent or SG and A risk, the the margin is gonna be good.
And even in 2025, based on this new agreement, we expect another, hopefully, 15% growth in sales and profitability as well. So in term of initiatives, I think that we continue to demonstrate that we have the power to generate ideas and always or almost always successful ideas, which are bringing to our brand a new and most enlarged customer base, also with more innovative customer profile in term of pro capital spending, which is allowing us, together with the improvement of the quality of the stores, windows, and atmosphere, and also, most importantly, quality of the merchandising, we are also continuing elevating our average price and increasing the conversion rate, which is a good evidence that independently from market expectation and behaviors, sometime market are consumer are maybe concerned, like, about the the national situation and the uncertainty and the electricity bill, which is increasing. But what we see is that OBS as a destination continue to remain their preferred place where Italian families are deciding to go, and this is demonstrated by the very high conversion rate. Couple of words about g and a. SG and a has been impacted by the cost of labor increase, which has been higher than normal.
You are already aware that last year, the new labor agreement has been signed, and this impacted almost 15,000,000 in our profit and loss. A material amount of SG and A, about $2,025,000,000, has been generated by growth, so new openings. Unfortunately, we have been affected in the last portion of the year by this one off element, which we have been forced to report as EBITDA even if it is extraordinary element of EBITDA, which refers to a couple of situations where customers in financial trouble and under the protection of the Composizione Negotiata del Acrisi for the ones of you who are familiar with the Italian kind of chapter 11. Differently from what had been reported before forced us to a major a higher depreciation of our credit. And another element has been the the change in the tax law regarding the research and development activities, which impacted all the credit generated in the pension industry by these activities, which has been subject to a change in the law, which forced all of us to claim and to enter in negotiation with the the tax authority because the change in the law has been has forced all of us to change our accounting policies, basically, our creditor versus the state because part of this credit has been not recognized.
So this extraordinary impacted by about 5,000,000 in our account. So the the the adjusted EBITDA, if you want to say that once the nonrecurrent element would be not considered is about $2,200,000,000. We believe that this means that the company has been able to confirm to be a very solid player in this market. CapEx has been high compared to our historical level for the last year in in term of extraordinary CapEx because we completed, as we announced, the three year program of innovation in several of our technological innovation, like the new deposit, the the opening in a body of the center dedicated to rework the the product which are leftover and in order to increase the life cycle of those item with the positive element positive aspects also in term of profitability for the following year because thanks to this investment, a higher amount of goods of our government will be refurbished and reported for the following year as as new. Also, we mentioned the good performance of SFLN in the second part of the year.
This is not material in our account because it’s remained very small, 20 approximately 25,000,000 turnover for the full year. But it’s worth mentioning that after a period of uncertainty or negative performance generated by the collections, which were made by a former manager, now finally, I believe we have found the the solution with a new manager in charge of it, a new designer. And in the second half, Stephane’s sales grew double digit compared to the past. And also in this first part of the year, the Stefanel sales are very promising. So that’s it for now, and I hand the word to to Francesco Rinciuri.
But before doing it, I remember also that in light of the good net financial position and cash generation, we decided to propose to the shareholder meeting a dividend of €011 per share, which means an increase compared to the ordinary dividend of more than 50% and also an increase of 10% compared to the total dividend that we have been distributed the year before. Thank you. Mister Francesco, I leave the word to you. Thank you, Stefano. So I move now to page number five with some further details on the income statement.
Most of the comments have already been provided by by Stefan, so I think we summarized the plus 6% in net sales. The growth of 91 basis points in gross margin that despite the the inflationary pressure that led to an EBITDA increasing by 13,000,000 over last year. And with the the net result growing a couple of million, in this case, we also penalized by some increase in the tax rate due to some new international regulations that impacted our group. I move to page number six with some more colors of this performance over the quarters. They have already commented over time the the first three quarters.
Just to remember, a good q one, very weather penalized q two with sales growing just 3%, but then with a strong q three, in that case, weather was favorable. And then in q four, that was basically a normal normal quarter in terms of things. That, unfortunately, did not translate in a further increase in EBITDA because all these one off items mentioned by Stefano, that is the the the the provision that the loss on on receivable and the adjustment on the fiscal credit happened and took place in q four. So the 60,000,000 reported is a net of this cost that needs to be based on accounting principles reported above EBITDA. I move to page number seven that provides a breakdown by channel and branch with all positive figures.
So the the franchising both franchising and direct growth are growing. Both brands, OBS and Oopim, are growing, Particularly, OPIM in the course of 02/2024 had very strong results, plus 8% in sales that translated into a plus 16% on the business unit EBITDA that now passed also the line of the 10% margin with OBS consolidating a profit an EBITDA margin above 13%, so in line with the best practice of of the industry. On page number eight, we start to have a look to all the financial items of the the the company. In a context, I said, of growing business, we also managed to generate cash out of the working capital in global 12,000,000 as a combination of a flattish trade receivable sign that we have a a very strong credit management policies vis a vis all of the franchisees and that is so it’s slightly cash generative item. On inventory, compared to last year, we see a 25,000,000 increase due to couple of elements.
On one side, the growing of the duty that requires some stock to be put in the store as starting stocks, especially for the new opening or the new opening within our stores. And on the other side, we have still alive the issue of the the Swiss channel that forces us to have a longer shipment time. Last year, it was just taking place, so we we were in a sort of ramp up phase, and now we have normalized with about 20,000,000 stock in transit higher than than last year. On page number on payables, sorry, We instead, we are benefiting over the growth of the business plus 6% and that are more or less 24,000,000, and the rest are due to this anticipation extra purchases on on good. Page number nine, we have the view on capital expenditures that are basically in line with with last year even if, I mean, of course, the the topics that we touched during this year changed.
Last year, we completed basically the the automation of our Continuum Energy Exchange DC. And this year, the main investment was on the innovation center in in Bari where we deal with rework of of governments. We in terms of IT, we also had, during this year, the rollout of the new cash system that easy the interaction with customers and also the the all the omnichannel activities. And in total, we reached the 95, 90 4 million like last year, and we expect 02/2025, of course, to reduce the peak of of investments. Page number 10 provides the view on the cash flow.
Cash flow that is increasing by 5,000,000 versus last year as a combination of 13,000,000 higher EBITDA. In working capital, still cash positive and in line with previous year, like the investments that were substantial. And the fact that we during the 2024, terminated our tax credit related to the past year losses, COVID related losses. And so we had a strong increase in the tax payment also with a double effect of the first year in which we recover a a due vis a vis the the the government. The element I would like also to highlight is that single year cash flows can somehow be impacted by extraordinary elements like a payment arriving or paid one day or or the day after.
But over three years, we are now in front of a row of over 60,000,000 cash generation That totals about 200 millions. So if you would have provided solid feeling on the cash generation capacity of of this company. Page 11, what have we done with this cash generated? Basically, we gave it all to our shareholders either by direct dividend distribution that increased over time by 11,000,000 in 02/2022 to 12 25,000,000 in 02/2024 at least an increase in in buyback. As anticipated by Stefano, this year, based on the results, we expect to further increase the dividend distribution to 11¢ per share, and we are also proposing to a shareholder meeting to go ahead with the buyback plan in order with 10 millions for the the the the coming months.
Page number 12 is provides a view on the the net financial position that is basically stable given the fact that we are distributing all the cash generated with a leverage ratio between 0.76 to 0.8. So, basically, a a super safe number that even over the the taking the average over the last twelve months is 1.3. So in a situation of normal business. Page 14, move to the future. And with a couple of one dedicated slide that we thought was necessary to commence the the the storm that affected the market over the last ten days, that is the the the the the tariffs, the the of US.
Of course, we are worried in general about the how such a irrelevant topic was dealt with with go and forth back and forth. But in general, we see, for OBS, positive elements. The first one that we already recorded is the improvement of the value of euro vis a vis the dollar, and this allowed also to fill one of the gaps that we still had two months ago that was how to cover December 26. Because at that time, the euro dollar was 1.03, 1 point 0 4, and now we are managing to cover it with the, let me say, a standard value of 1.1 plus in terms of of coverage. The other is depending on how this saga will end, but most probably, there will be some reduction in import from the the Far East to US, and this will free up capacity production capacity in those countries to the benefit of negotiation with with suppliers.
Both these two items, we think, have a positive element vis a vis OBS. So in general, on page 15, the expectation for 2025 are of continuing in in the growth, first of all, in the business related items that are the appreciation of our collections. As said by Stefan, we launched with a very successful plan, the the Lego Pen brand, and all the other elements are moving well. So we expect a ’25 growing both in terms of BTDA and cash generation vis a vis 2024. The initial months of this year were affected a little bit by the weather.
So we and we are comparing, as I said, with excellent results in 02/2024. So we are managing to keep basically these results, and we hope, of course, in rebound over the the weather in May, June, the tariff, the focus month for for our business. And last year, we’re very negative. So we expect an improvement in that moment. That’s it.
So I would say a link to the q and a session and give back the word to the operator. Thank you.
Conference Operator: Thank you. This is the conference operator. We will now begin the question and answer session. Session. The first question is from Luca Cini Baroni of Vaughn Investments.
Mister Baroni, your line is open. Mister Baroni, maybe your your telephone is on mute. The next question is from Daniela Librandi of Stifel.
Stefano Humberaldo, CEO, OBS: Yes, sir. Good morning, gentlemen. Thanks for taking my question and congrats for the results. Two questions and follow ups. I’ll start with the follow-up.
First one is if you can give us an idea of what is the tax rate guidance for this year. Second follow-up on Stefano. You mentioned double digit growth in H2. I remember H1 was minus 8%, Q3 plus 5%. So I would say there has been there was an acceleration in Q4, just checking on this.
And the two questions are, first one on gross margin. What should we expect for 2025 in terms of gross margins gains as we are seeing energy costs decreasing? The US dollar is weakening, which should be helpful for your sourcing. And and also a potential resolution of the conflict in the Red Sea could actually push freight rates down. So just want to to check this with you.
And last question on Golden Point, if you can give us an update on the numbers last year, the strategy you wish to implement here, the cost of the option, and the potential synergies you can extract as basically market is not factoring anything there yet. And at some point later this year, I guess, in September, we have to adjust the numbers. So thanks for for for the answer. The tax rate going forward should be around 26%. Of course, we are working on some potential benefit coming from the Italian legislation supporting some investment, especially in the South Of Italy or in the digital IP transformation, like, with the and the the so called test.
If all these major will be effect on our tax basis will go down about around 24%. But for the time being, 26 is what we have in our plan. Okay. On the question relating the the gross margin 25, I expect that as a balance between different elements, the gross margin might remain more or less stable. After a couple of year of price increases, which we have been able to pass to our customers, also thanks to the improvements that we made in our store and in our merchandising, we decided for year 2025 to keep prices more or less stable.
And the dollar that you correctly mentioned will be an advantage mostly on 2026 sourcing because the recent weakening of the dollar is enabling us to start buying dollars for spring summer twenty six after much advent at a much favorable rate compared to this year and last year. But on the other side, most of the sourcing for year ’20 ’20 ’5, as usual, has been hedged. So we have a very small advantage, almost immaterial compared to 2024 in year twenty five. All the advantages will be taken, and we are buying dollar now to the advantage of the 2026. Other aspect, as you correctly mentioned mentioned, might generate advantages like like the the shipment cost.
In this moment, with the huge turmoil that we see in the market, market, it’s difficult to incorporate those kinds of benefit in our assumptions. On the other side, we must be also cautious that the market this year might require some further markdown in case in case the customers would be reluctant to to spend. So we don’t know what will happen in the consumer feeling. We don’t have evidence in this moment of negative aspects which are impacting our customer base. We believe, again, that if there will be a continuation, if I may say, of the down trading trend, is affecting the market, obviously, we’ll be properly positioned to take advantage of it, like we are doing now.
But I prefer to remain flattish in my expectation of gross margin this year, and we are working in order to have a 2026 with a further improvement in gross margin, not because of a further price increase, but because of a lower cost of goods, thanks to the two elements which have been mentioned, the dollar. And also and this is gonna be very important. The present situation of high custom duty are creating a sort of a strong reaction in the Far East suppliers, and we are receiving continuous requests from vendors to meet and to start discussing prosecution of our orders for 2026. And in exchange of this, they are ready to give us a better condition because, as Francesco mentioned, they are concerned because one portion of their production capacity will be void next year due to reduction of sales in The United States. This is already happening.
This is not a speculation or something theoretical. This is happening because the orders from our competitor, which are operating in The United States, like Gap or Abercrombie, are basically strongly reduced or in a steep spending position waiting for news from the custom duty side, which apparently will not be good for them. So difficult to give you a a more precise guidance, But as Francesco said, we believe that the success of some project, like the growth of beauty, the growth of the angel, the growth of other element, we generate a positive effect by default in the like for like service. The gross margin will be more or less stable, and, also, we started an important activity of cost cutting. This is not because we are scary, but because we believe that given the international turmoil, it is appropriate for us to try to make some saving in our f g and a structure, which we generate some medium of advantages in year twenty five compared to year twenty four.
So all in all, that’s why we are confident that year twenty five will be another year where top line and EBITDA will will grow. We have some negative elements again, like the cost of labor increase. You might remember that the national labor contract foresee a three year distribution of the cost increases. So the first year has been ’24. The second year is ’25.
And in lower extent, it will impact also 2026. Stefaniella Stefaniella in the second half grew by 25%. So that’s why after the first half double digit negative, we end up with a positive like for like. And in the first half of the year, the the sales are increasing again like for like compared to the year before. Golden point, still still soon to draw conclusion on the impact on our sales and profitability.
All in all, the results of of Golden Point in year twenty four has been $34,000,000 lower than our expectation, and this is this generated in our negotiation with the owners, the decision to change our agreement regarding the sequence of options. So, basically, we are reducing by this amount the cost of the second call option and also the first option that we expect to exercise within July instead of being paid to the present shareholder will be injected in the company. So, basically, 50 of this price will be to the advantage of our stake. From the industrial point of view, everything is moving in the right direction. We started the we we didn’t have time, basically, to to to activate initiatives at the merchandising level because of the seasonality of this business, which require, as you know, months in advance before generating new products and introducing those products in the store.
But the first signals are are very good. The the the for instance, I can tell you that the the segment of Nightware where we are very strong and they were very weak has been has demonstrated to be a big opportunity because in the last part of the year, 2024, we had the opportunity to introduce part of this segment, moving some of our products from our dedicated store, changing the label to 200 points, and the increase of sales has been immediate and very material. So this means that from this category in year 2025, we will see an important sales growth. Same happened to the fitness line. We have a fitness line in OBS, we introduced in the second part of last year, very successful.
Some of those item has been given to Golden Point as a pilot, and the sell through has been super strong. So they went out of stock in few weeks. So it is clear to us that the store are reacting to every new good idea and good segment of product that we will generate. One one other information, we in the first two months of the year, we started converting, better to say, refurbishing according a new image, some stores of Golden Point. And even without a completely new merchandising, which will be visible in the second part of year ’25, The stores which have been refurbished are increasing sales by about 15% compared to similar store in the same geographic area, which has not been refurbished.
So all good signals. I hope to have answered to your question completely. Yes. Thank you very much.
Conference Operator: The next question is from Domenico DiLoccia of Equita.
Stefano Humberaldo, CEO, OBS: Good morning. My first question, if you can give us a sense of what was the performance compared to the market. So if you have a sense of your market share performance in 2024 and any change in the competitive landscape? The second question is on the CapEx. Generally, CapEx level for this year, but more in particular, we should expect maybe also the mix in CapEx change a little bit, so more dedicated to store openings and store refurbishment or the the same compared to last year?
And and the third, you were mentioning in the press release also the opportunity to to push the beauty also through dedicated mono brand stores, if you can elaborate on this initiative also. Thanks. Thank you, Domenico. And your first question regarding the market, I can tell you that in year twenty four, in the last quarter market has been reported by Citadel, negative by minus two, and the total year, the market has been positive by 0.7%. Those figures are according to Citadel.
Our performance has been plus 3.7 for sorry. Our performance like for like has been 3.7, I see. And in total, we achieved a 6% increase. So, basically, we one year, again, we overcome the market performance. In the first month of this year, we are, again, outperforming the market, which started negative with a minus one, more or less, minus zero seven in February, and minus 1.2 in March, and we are performing better than the market again.
In term of competitive landscape, nothing special to mention. If not, that Benetton is really deciding to disappear from the market. They are closing stores. We are benefiting from this trend because we are opening stores that were formally managed by Benetton Partners. For instance, in the Puglia region, which is in the South Of Italy, we are about to open about 10 stores, small or mid size, with the the former Benetton partner.
And those stores, we became a Golden Point, we became Stefaniella, and this is really an opportunity. From a more general point of view, Inditex is still doing well with mostly all of their format, not increasing number of stores, but performing well in our opinion. Primark is on its market positioning continuously growing and performing well. EPCO seems to have some trouble. They grew very much, but they are not delivering quality in in the in in the proper way.
And all the others The mid market is suffering hugely. And the performance of the Canal is particularly encouraging given that in the bridge and premium part of the market, most of the players are really suffering. And this is, again, a confirmation of the right positioning where we have the sensor because we are really attracting a big amount of those customer buying Piombo and now also buying Elecopene. CapEx question, the mix is changing because the reduction of CapEx is mostly related to the spacer project, which has been accomplished.
So, basically, the new opening CapEx, dedicated CapEx, and refurbishing dedicated CapEx, we remain more or less the same. But because the total amount we reduced, the mix is changing in favor of revenue generating CapEx. On the beauty beauty is really, I think, the most important project that we have been able to create and generate in the last five years. Sales density of beauty in our stores is much higher than the apparel, which is normal. €13,000 per square meters sales with a slightly lower margin means that the GMOY or the gross margin per square meter of beauty is almost double compared to the margin generated by the apparel.
So beauty is useful not only to attract new customer in obvious stores, generating cross selling, but also to generate absolute EBITDA per square meter. Regarding your question about the opening of a stand alone stores, I’m happy to say that in Pavia, we opened last week our second pilot, and the results are are even better than the Ferrara First pilot. In the first six six months, Ferrara is generating a 30% per sales higher compared to our budget, and the store, we expect that we’ll achieve 1,000,000 sales. The store is a 90 square meter store, so more than €10,000 per square meter. It will be a very profitable store.
In Pavia, the the start has been even higher. So the first day doesn’t mean anything special, but there were a few people queuing and waiting for the opening of the store. And we are achieving sales in absolute value in the first days, which are comparable to full format of the SS store five times bigger. So very good start. And now we decided to enter in the second phase of our, call it, pilot, but it’s not that much a pilot anymore.
It will became a development plan. I think that we opened this we will open this year between ten and twenty beauty store. We are looking for locations now, and this business is very promising. Thank you. The
Conference Operator: next question is from Andrea Bouncer, Bank of Akros.
Stefano Humberaldo, CEO, OBS: Hello. Good morning to everybody. My question is related to the month of May and June. Second, assuming that weather normalized, how much sales would you recover compare compared with last year in terms of number? Are we talking of 14 or more, thirty, fifty?
Just sort an idea. Thank you very much. Well, when I think and my team is thinking, I touch more. So because we are talking about something which is not dependent from our power. It will be a material number.
Maybe 30,000,000 could be achieved. Also because, as of now, weather continues to be very negative. You are in Italy, and you know that today is cold, is raining, etcetera. So we believe that most of the state which characterize the start of the real string sales period still has to come. So I expect a stronger bound because our assortment is well in place.
We have no delay this year. While last year, we suffered some delay in the arrival of merchandising. So could be 30, could be even more. Very much will depend from weather. If weather will change as apparently will happen in ten days from now, we start mirroring the worst days of last year because as of last year last year, as of today, sales were very good and weather was positive.
From mid April, weather changes drastically, and so we had easy comparison starting from next week, basically. So let’s cross finger 30,000,000 minimum we expect to compared to last year. Thank you very much.
Conference Operator: Star and one on your telephone. For any further questions, please press and one on your telephone.
Stefano Humberaldo, CEO, OBS: One thing maybe I will say because I think that we need mentioning one element. We told that we told you that during 2025, the CapEx will be reduced. Didn’t tell. We didn’t give you a guidance. We believe that at least 10,000,000 less CapEx will be done in year 2025, if not fifteen.
Thank you for attending this call, and I wish you a nice Easter period. Good have a nice day. Ciao.
Conference Operator: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.
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