Make Texture a preferred source on Google to support us
Add Texture to GoogleFor Fope, the next step in France involves establishing a company based in Paris. Announced in August 2026, the creation of Fope France SAS provides the Vicenza-based jeweler with a structure dedicated to a market it intends to target more directly. This decision sheds new light on its half-year results: behind the sales growth, the Italian company is building the commercial infrastructure for its expansion. The goal is not only to sell more jewelry but also to better organize its distribution, country by country, while maintaining profitability in the face of rising gold prices.
In Paris, the decision to establish a direct presence
Wholly owned by Fope Spa, the new French subsidiary joins the entities already operating in the United States, the United Kingdom, Germany, and Japan. Its mission focuses on business development, with resources dedicated to marketing and communications. It is tasked with supporting the selective distribution of the collections. It is therefore a tool for establishing a market presence, not an announcement of a Paris boutique.
This distinction matters. By establishing a locally structured team, Fope aims to strengthen its relationships with its clientele and support the distribution of its collections. Diego Nardin, its CEO, justifies this expansion by citing France’s position in the international luxury market and the opportunities offered by a direct sales model. He highlights a clientele that values quality, exclusivity, and product identity, though he has not yet announced any specific sales targets for the country.
The French initiative thus builds on a strategy already implemented elsewhere. The company does not treat its international expansion as a uniform whole: some markets have subsidiaries, while others are home to new retail locations. This organizational structure provides a more revealing perspective than a simple increase in revenue alone. It shows where the group chooses to allocate its resources to support its continued growth.
A Rise in Sales to Be Viewed in Light of the Price of Gold
Revenue was driven by a first half of the year that saw significant growth. Fope, listed on Euronext Growth Milan, reported €56.8 million in consolidated net revenue for the first six months of 2026, representing a 32% increase. This momentum extends to both its most established markets and those where its presence is still growing.
However, this figure should be viewed with caution. The jeweler raised its prices at the beginning of the year to account for the rise in the price of gold. Part of the revenue growth is therefore attributable to higher selling prices. The company believes its growth remains significant even when this adjustment is taken into account, but it does not provide a breakdown that would allow for a precise distinction between the impact of pricing and that of sales volume.
Diego Nardin does report an increase in sales volume. Nevertheless, it would be an overstatement to interpret the 32% growth as an equivalent measure of consumer demand for the collections. This distinction is essential in the jewelry industry when raw material costs rise: revenue reflects the value of sales, not—on its own—the number of pieces sold. The results, however, provide another, more precise indicator of the business’s performance: profitability is also on the rise.
Margins Keeping Pace with Growth
EBITDA reached 14.8 million euros, compared with 10.6 million in the first half of 2025. Its share of revenue rose from 24.6% to 26.1%. In other words, the increase in revenue is accompanied by an improvement in the operating margin before depreciation and amortization, and not merely by an accounting-related change in scale due to pricing.
Management attributes this trend to increased volumes and improved gross margins, which better absorb overhead costs. This is a critical factor during a phase of international expansion: the expenses required for the sales organization must be supported by business activity. For the half-year, Fope reports having achieved its expected EBITDA level.
After €1.5 million in depreciation and amortization—an amount unchanged from a year ago—operating income came in at €13.3 million, up from €9.1 million previously. Net income rose from 5.6 to 9.4 million. It also benefited from a significant reduction in net financial expenses, which fell from 1.2 million to 0.2 million euros. At the same time, the tax expense increased from 2.3 to 3.7 million. The final performance is therefore not driven by a single factor: operating performance is improving, and the burden of financing is decreasing.
Investing More Without Depleting Net Cash
The ability to finance this expansion is evident in the cash flows. Operations generated 9.2 million euros in operating cash flow, compared to 6.3 million in the first half of 2025. At the same time, investments in tangible and intangible assets totaled 3.4 million euros, up from 1.6 million a year earlier. The group is thus increasing its capital expenditures while its cash generation strengthens.
As of June 30, 2026, its net financial position remained positive at 9.9 million euros, very close to the 10 million recorded at the end of 2025. This stability should be viewed in light of the investment efforts, as well as the dividends distributed, which totaled 5.98 million euros.
The balance sheet, however, shows a seemingly less favorable trend: shareholders’ equity declined from 57.6 to 48.4 million euros. This decline does not reflect a half-year loss. It is primarily due to dividends and the reversal of the cash flow hedging reserve, which shifted from a positive balance of 7.5 million to a negative balance of 5.2 million. Share capital and reserves, meanwhile, increased from 50.1 to 53.6 million. Distinguishing these changes helps avoid confusing the profit for the period with the overall change in equity.
Asia is growing; Europe remains a mainstay
The geographic breakdown of sales explains the focus on these financial resources. The Americas and Europe remain Fope’s main markets. In Europe, Germany and the United Kingdom are driving growth. The creation of the French subsidiary thus complements an already established presence in two major markets on the continent, rather than shifting the group’s commercial center of gravity.
At the same time, Japan, South Korea, and Southeast Asia are the focus of part of the expansion strategy and investments. These markets are described as “emerging” for Fope—a distinction that reflects their role in the brand’s development. The recent opening of its first single-brand boutique in Hong Kong is a concrete manifestation of this Asian ambition. According to management, commercial initiatives have been well received across all territories, particularly those entered more recently.
For the end of the fiscal year, the group forecasts volumes higher than those of 2025 and a positive result. It nevertheless maintains a cautious approach in light of macroeconomic and geopolitical developments, citing the conflicts between Russia and Ukraine as well as between Israel and Palestine. The first few months following the half-year closing have reinforced these forecasts: the order backlog exceeds that of the comparable period in 2025 and remains in line with the budget. With this business visibility, the new Paris-based structure can now begin its work in the French market.