Good evening, everyone. We'll be waiting another couple of minutes just in case anyone is late, and then we shall start the call.

Okay. I think you can see my screen.

Thank you for connecting to today's call. This morning we had the Board of Directors of BasicNet to present the the figures of the first quarter 2026, whose numbers we'll be commenting in the in the next hour.

Starting as usual with the with the key indicators we we use to monitor the performance of the group. The total aggregate sales are are up compared to last year by 11%.

We'll see the disaggregation in between aggregate sales of licensees, meaning the direct sales made by the group and the sales made by commercial licensees and the aggregated sales of sourcing centers. The former have increased compared to to last year, with the contribution of the newly acquired brands Woolrich and Sundek.

I remind that Woolrich has been consolidated starting from December the 1st, whereas Sundek was consolidated at year-end. This is the first contribution to the to the P&L and, in general, to the economic indicators of the of the group.

ASL reported an important improvement, they're just shy of of they're just above 240 million, whereas when it comes to aggregated sales of sourcing centers, we reported a slight decrease. This is due partially to a different timing in terms of of orders compared to last year, especially for orders made by BasicNet Group itself, and some lower purchases by third-party licensees in their normal management of stock, purchases made for carryovers in previous years.

When it comes to consolidated revenues, the the the the row increased compared to last year is above 35% with the contribution with a strong contribution from Woolrich and Sundek. That, usually, we don't share data by brand, but I I can I can say that even without Woolrich and Sundek, the growth would still be double-digit, in in absolute like-for-like terms.

Within consolidated revenues, we had some shift in between royalties and direct sales as, the group keep keeps consolidating direct sales, especially for the European market. This phenomenon, which has been going on over the last years, continued in in 2026.

You will remember that, at the end of last year, to mention probably the most important one, we acquired back Sebago France, the the French licensee for for Sebago. EBITDA is up at 15.4 million, an increase of over 20% compared to last year.

Here we are comparing it to the pro forma data of 2025, meaning the EBITDA net of all the costs incurred for the K-Way for the K-Way transaction, which saw Permira acquiring roughly 40% of of K-Way. Here again, Woolrich and Sundek contributed positively to the indicator, they they they already are EBITDA positive.

We we see more later on. We already started several activities on on both group, and Woolrich, of course, is the the largest one to improve the profitability.

We we expect Q3 and especially Q4 to be the moment when we will see the results of all these actions which which have already been taken. Then, finally, in terms of net financial position with banks, we are just slightly above 100 million.

We closed the year at 74. Here Q1 is is typically a quarter when we have a cash absorption due to to to the usual trend of trade working capital, which in in this year, in this quarter, was amplified by the inclusion of Sundek and Woolrich within the perimeter.

Among the notable facts in terms of NFP, we we paid a portion of the deferred price related to Sebago, 1.6 million. We will have a final payment which will occur in 2026 of up to €1 million.

As you probably will remember for those who took part into the latest calls, we we say we we said we shared and anticipated that we were going to renegotiate the financial debt of Sundek. Again, I make one one step back.

The the financial debt of Woolrich was completely refinanced immediately at closing, whereas for Sundek, we acquired the the existing debt at the time of the closing, which was not aligned in term in in term of in which was not aligned in terms of conditions to to the group standard conditions. We said we would have rene- have renegotiated it in the first months of 2026, which we did.

We we we have drawn a new mid-term loan from MPS that has allowed, in between the latest days of of March and beginning of April, to pay back in full the the existing debt and replace it with a with a new one with the same condition as we have for for the group. Basically I already shared the comments that you can see here, and probably most of you have already read.

Moving to the to the activity of the network, we reported a little bit of history to see where we moved compared to to to to the previous 5 years. You can immediately see, under a graphic point of view, the the important increase of ASL, which again are the combination of direct sales of goods made by the group and sales made by the commercial licensees.

Here, in between the 203 million and 241 of of this year, we had a contribution of Woolrich and Sundek plus different different trends among the brands. We will not go that much in detail with the figures because you know that our approach is that BasicNet is a is a platform, and also the strength of the platform is is having several brands and with different with different performance at different times.

I I can say that Sebago, once again, as per the latest calls we had, has outperformed. The the the brand is growing.

We now basically control most of Europe directly. Which, in any case, does doesn't make any impact here, as we are summing up our sales and those from from the commercial licensees.

Just on a pure brand standpoint, it was absolutely outstanding. In terms of Kappa, we had mixed performances across the geographies, and we'll see that partially later on since we had a a slight decrease in in in in the Americas, which is related substantially to to Argentina, and then mixed performances across all the the geography in Europe, which keeps being our key market.

As per the sales of sourcing centers, which are the sales that our production licensees make either to us or to the commercial licensees, this is basically the amount on which sourcing commissions are calculated, they decreased, as I mentioned in in the opening of the call, is partially due to purchases that we made in advance, and so the goods were shipped at the end of 2025. Again, this is part of a of a strategy that we we've had over the last years to anticipate deliveries to the final customers, to retailers and wholesalers, and partially to some reduction from certain specific licensees in terms of purchasing of especially in carryover, to maximize the the existing stock of recurring items.

In terms of the geography, as I mentioned before, we have, unfortunately, a a red sign on Americas. You you will remember, over the last couple of years, we had not the the most outstanding performance in the Americas due to the bankruptcy of the the Kappa US licensee.

Now this -18% is mostly related to Kappa Argentinian licensee, which is affected by the general condition of the market and and the economy in [unclear]. Europe again keeps growing, which is good news since it's it's our main market.

We had some some good performances across Asia, Oceania, especially in Vietnam and and in Japan. When it comes to Middle East and Africa, we have a a large licensee in in Middle East which to whom is related this little decrease compared to to last year.

Here, as you can imagine, we had some big concern considering what is what is going on right now in the world and in Middle East specifically. The good news is that, thus far, we didn't see a major impact, a slight decrease, but apparently, for the time being, it seems that our consumers are local consumers mostly, not tourists whose whose presence in the Middle East has significantly dropped.

The brands keep performing pretty steadily compared to the previous periods. Then jumping into the network activity, I will not go that much in detail, and you have the materials, for for anyone who wants to read in detail, everything is is available.

Just very quickly, Kappa has kept working on its major lines, which means motorsport, where we have increased our presence and guaranteed that we will be part of MotoGP again for for next year. As you can imagine, Q1 for for ski, which is important for Kappa and also for K-Way, as we'll see later on, is mostly related to the to the Olympics, and we were lucky enough to see very often US US athletes which were Kappa-kitted on the podium during during the whole Olympics.

Then, apart from that, Q1 was was was the moment for the presentation, the launch of spring-summer. Among the various items, we launched a new running shoe, which has been the the center of several activities and and presentations.

Superga, as I mentioned above, hasn't had the best moment of the life of of the brand, but again, we know it's a cycle, and so we keep working to be to be ready, and we think it will not take much longer to wait. In Q1, we announced the the presentation of a of a book which was published in in April telling the history of Superga, which even though the the the commercial performance is is not as outstanding as it as it has been, keeps being a an icon and an immediately recognizable shoe with a very deep history.

Several activities were made for for the presentation of spring-summer 2026, and then with with association with influencers, create creators, digital creators around the world to make smart, intelligent marketing campaigns and activities. K-Way, as I said before, in Q1 and here there are a few activities which were held across the end of 2025 and beginning of 2026 for especially for for ski.

Our presence in in Cervinia on the Skyway, and several activities related to the to the ski collection. Then the the the Montagna Milano event held at our village in Milan in January.

Then we presented the spring-summer 2026 collection with, again, a new drop of the Le Vrai 4. 4.0.

Sebago kept the new openings, a new opening in Florence. Others will follow in the next months in between Italy and France.

Several locations have already been scouted, a few already signed. It's just a matter of completing the renovation works and and move forward.

We partnered again, and we are very happy about that, with Max Mara. This is a a co-branding which comes back from from previous years.

Among the other things, we were present again at the at the Paris Fashion Week. Then just a few highlights from Woolrich and Sundek.

Woolrich was back at Pitti. We will be back again in June with both Woolrich and Sundek.

We are working on on that. We presented the new collection, the fall-winter 2026 to the press.

As you can imagine, for those who know the business and us, these are collections which were largely already defined when we made the acquisition, we just could make some minor adjustments where needed. The work which has already been done and which was part and still is part of of our plan of turnaround of both brands is working on the on the image, on the campaigns, and the presentation.

A specific mountain-based campaign, extremely raw, to bring Woolrich back to its to its aesthetics was was made. The same for for Sundek, where we went to we went in California to make a shooting of the the new season.

Moving to our results, a few figures that we partially already commented. Sorry, I went too fast.

Direct sales, we went from 81 to 118 million. This is a a combination of wholesale, retail, and e-com sales.

Again, even without Sundek and Sundek and and Woolrich, the growth here would be a solid a solid double-digit one. Net royalties decreased compared to last year.

This is a combination of, as you can imagine, we saw that the sales of sourcing centers declined, lower sourcing commissions, and when it comes to royalties, we had some reclassification. I mentioned before Sebago France, which was acquired, we we we don't have the direct royalties anymore, but we have then the direct sales and several other territories which were back which were brought back.

We have and I know it's marginal, a slight decrease in the real estate revenues. Here, actually, this is the contribution to the group.

Actually, our real estate grew, but it's just working more for the group, since we are expanding and growing, we just reduced spaces rented out to third parties. In terms of EBITDA, we went from 12.7 to 15 million.

Even here, without without Woolrich and and Sundek, which contributed a little less than 2.4 million, still we would have an increased an increase compared to last year. As you can imagine, the contribution to the to the higher costs is mostly related to to the new brands.

Just one point on the on the on the labor cost, the let's say the the like-for-like, at same perimeter, growth would be of 3 million. This is a growth which is related first to the to the retail network, and so K-Way and Sebago retail network, which is expanding, and then to investments we made in human resources in in K-Way to bring on the value the value plan with Permira in the in the next years.

Moving to the to the NFP, we started at 74 million. We're comparing with with year-end.

Just a quick note, at the end of March 2025, NFP was positive, positive, highly positive. We had just completed the transaction with with Permira, not even have paid most of the costs.

Actually the comparison here would be not extremely indicative. Of course, we we had not done any of the acquisitions which were completed in December 2025.

Across across the quarter, the operating cash flow was was slightly negative, and mostly due to trade working capital. It's mostly the difference in between the the reduction of inventory, which comes from shipping of spring-summer, and payment of trade accounts payable.

Here, compared to last year, we also had the the the inclusion of Woolrich and Sundek plus plus some work to align the payment conditions of Woolrich to our usual group standards. In terms of capex, we invested again in in the retail expansion, IT as usual, plus the renovation works that we are bringing on here at BasicVillage.

For those who are familiar with our headquarters, basically we own a large building which is just aside the headquarters. It has hosted the the the the Revenue Agency over the last years, and now we are expanding the headquarters to host the new Woolrich colleagues who will move here in September.

We started some renovation works to have these new offices available after summer. As I mentioned before, we paid this first this first part of the deferred price to Sebago France for the acquisition of Sebago France.

Just a quick note, it's not in the figures because it was paid in April, but we we made the final payment related to the K-Way France acquisition. This was a part of the earnout that you could see in the figures at the end of 2025.

Then apart from from the acquisition of treasury shares, we had a a big increase in the IFRS 16 payments, basically rent, to make it very easy, with a big contribution from Woolrich and Sundek. This is another chapter where we are working to make some reasonable rightsizing of of the costs and then, of course, of the cash out.

I think this is it in terms of our presentation. If there are any questions, I'm glad to answer.

I see Mr. Lustig raising the hand.

I would say if you want to start...

Good evening to all, and good evening, Marco. I just have a question on the profitability and the contribution coming from Sundek and Woolrich.

If I understood well, you mentioned a contribution slightly below 2 million at EBITDA level maybe, if I am correct, which is, well, positive in my opinion. You anticipated that some jobs and some actions have been already done, but the best part is going to come.

If you can mention action already realized and what is going to happen in the coming quarter. Thank you.

Yeah. The contribution to EBITDA of the two brands combined is slightly above 2 million, it's a little bit more.

We are taking several actions, I would say the most related to Woolrich. As but I will tell all the story, maybe not everybody's familiar, Woolrich headquarters at the time of our acquisition were in Bologna.

The corporate seat now is here, most of the people are still in Bologna, and we decided to move their headquarter to Torino. After a discussion, negotiation with the labor unions and then with a favorable vote from the employees, the decision was finally taken to move it here in Torino in September.

Also to give a size of the operation, out of 130 people who are either, as I said, in Bologna or in Milan, where there is a showroom for the sales activity, a little bit more than 20 people will move to Torino, meaning we will have a significant layoff in September. Clearly, this will be the largest action affecting the P&L.

In Q1, we already had some minor layoff related to individual transactions with a few people from management, they account for roughly half a million. The largest part will be leaving Bologna, in terms of EBITDA, there will be a large impact in terms of labor cost because we certainly have to hire a few people because these 130 employees, of course, were doing their job and performing activities.

Some of the activities will be absorbed by the existing workforce here in Torino, with several brands contributing, so that we will move some knowledge from the other brands, we will leverage, of course, on several synergies for all, let's say, the back office and the staff activities. There, we project to have a very, very significant saving just due to our sizing, structure, and model.

We will leave the headquarters, the impact on that will be below EBITDA, and here negotiations are ongoing with the landlord to find an agreement and close the contract before its normal ending. We've already started several activities in terms of G&A, so as you can imagine, IT, external consultants, attorneys, to move everything possible to our group agreements, insurances.

All the G&A voices you can imagine, we are switching everything into BasicNet, which doesn't mean that we will not have to pay an additional single penny compared to what we spent before acquisitions, but, of course, there will be a strong synergy rather than Woolrich standalone, one company of, let's say, 90 million of turnover. There we will have an important saving.

We started some and partially closed some negotiations with suppliers, where again, the initial response was very positive. Then, on the cost of goods, there are so many different factors impacting in between dollars, shipping, and whatever happens in the world at the cost of fabrics, I will probably not spend here the saving we obtained, but still we obtained one in immediate negotiations with the factories.

I think that's it. The other part in Q1, this is not in EBITDA, it's definitely in the net financial position, Sundek, which is relatively smaller, still paid a huge amount of interest due to this old debt, which will significantly drop and that will be cash and it's actually cash saved from April the 1st.

Thank you very much. Can I also ask you, sorry—

Sorry, Stefano, I missed one thing. The other part we are working on, I will not go too much in detail on the significant doors because there are negotiations and confidentiality matters, but we are working on a few stores to see if we can move to different locations, also to leverage on locations that we already have for other brands, and so to move to spaces which are, we believe, more effective for the brand, less expensive, and more in line with the image of the brand, its positioning, and everything.

Thank you very much. Can I also ask you if the beginning of Q2 is showing, in terms of sales, is something materially different from Q1 trend?

I would say Q1, actually, was pretty much split in between January, February and then March, especially related to retail. As I said before, we haven't seen a direct impact on our licensees in Middle East following everything which is going on, which I assume everybody in this call knows perfectly.

We've seen some impact on direct purchases, honestly speaking, which does make absolutely sense in the moment when gasoline, energy is skyrocketing that there are some different choices from consumers. It didn't surprise us incredibly.

Already in March, we've seen sales slowing down compared to a very, very strong beginning of the year. April is pretty much in line with March.

I have to say wholesale is a pretty much different story, when we look then with different trends across brands, geography, and so on, but overall, when we look at the backlog for wholesale, it's still very positive and consistent with Q1. Basically Q1 we shipped the spring-summer, and for fall-winter we don't see any major change.

Thank you very much.

Thank you. Is there any additional question?

If not, again, thank you very much for attending this call. I remind you that the next one will be held on July the 31st.

We will put all the details, time, and connection details on our website as usual, and we will be presenting half-year results. For the time being, thank you again for sharing this half an hour with us, and see you in July.

Thank you. Bye.