Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the OVS first half 2026 financial results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Stefano Beraldo, CEO of OVS. Please go ahead, sir.
Thank you. Good morning to everyone. Thank you for attending this conference. I will make the story short. It has been a good quarter, more or less in line with the first quarter. So good momentum for all the brands of the company, for all the brands inside OVS, like PIOMBO, like Les Copains, like Altavia, like Utopja. Each of them with its own peculiarity, which is one of the reasons when people ask me, "How can you manage in such a challenging market to continue to perform so well?" The answer, I think, is the strategy. The strategy and the way the strategy is implemented. The brands inside OVS are more and more positioning OVS as an ideal place to come, to visit, and to expect to receive a good answer to different needs.
Utopja, for instance, is growing, will continue to grow, attracting Generation Z, which five years ago were not even considering OVS like a place to be visited. Altavia, I am receiving telephone calls from France asking me, "When Altavia s ki apparel will enter in the store, because we are waiting. Are you still making Altavia s ki?" And I say, "Yes. Wait one month. And in one month you will find Altavia s ki." We have people that visit OVS only because they love PIOMBO, and they have expectation like it is a luxury brand. They wait for the new collection. And similarly, Les Copains is justifying a higher price positioning simply because people perceive that it is well done, but also is a brand.
The fact that we have brands inside our assortment is really the reason why our positioning is benefiting, I think, more than other, at least in the Italian market, and generating is a good result. So very good six months, good profitability, cost under control. A lot of new initiatives that are giving good results. The one of you that lives in Milan might have seen last week incredible amount of number of people making queue, waiting to be admitted to our Shaka event. We had almost 20,000 people visiting Shaka, and I think 40 million impressions in Italy across the country regarding this event. We opened the second small, I call luxury OVS store, a small store in the middle of Trento to offer the best of our collection, and the store is doing very well. So we have still gasoline in the engine and ideas.
I think that also the second half will benefit from all the good things that we are doing in terms of product innovation and opening new stores. Everything is doing very well. The market is finally stable or slightly increasing. Happy to say that in the last maybe 24 months, we are not assisting anymore to a continual decrease and shrinking of the market. The market is hopefully now has found its bottom line. In this bottom line, we continue to benefit from the general trending down. More and more people also looking at our focus group and market research are trending down and deciding to find in OVS what maybe 10 years ago they only found in Zara. Finally, we are an alternative for many customers to Zara, and they declare when we ask what they think about OVS.
When we make this survey, we speak with thousands of people, and they like what we do, and they are ready also, as I told last week, it was the day before yesterday, to Milano Finanza Fashion Week conference. I told what is true. People is asking us also to increase prices because they are ready to pay for sweat jacket more. The best item, which is out of stock today, is the sweat jacket. But the price of the suede jacket is EUR 190. And 10 years ago, OVS maximum price maybe EUR 60. This is why OVS is changing, and this is why OVS is performing well, I think. I think better I stop, and I hand the word to Francesco.
Thank you, Stefano. I will start with page number four, and I excuse for the quantity of numbers in this slide, but it was necessary a little bit on this slide to explain also the performance with and without the integration of Goldenpoint that I remember started the 1st July last year. Last year was consolidated for just one month, but the best month within the semester for Goldenpoint and this year for the full six semesters. In the higher part of the table, we see the reported results with net sales increasing 11%, composed of a 3% like-for-like trend in OVS and Upim, and an additional 3% organic growth within the isoperimeter, or let me say the perimeter excluding Goldenpoint, and then, of course, the addition of Goldenpoint for the full semester.
In terms of absolute sales, we are close to EUR 900 million. Hopefully, moving forward in the next years, we could touch the EUR 1 billion per semester. The gross margin is improving as expected, driven by the euro-dollar improved exchange rate in spring/summer 2027 vis-à-vis the spring/summer 2026. Also thanks to the operating leverage, the EBITDA is increasing by EUR 12.5 million, reaching 13% of revenues. Then going down to EBIT profit before tax and net income. On the view without Goldenpoint, we already commented the trend in sales. This has an even more visible impact in terms of operating leverage, driving an EBITDA growth of EUR 17 million and an EBITDA percentage of 13.8%.
As a difference, the numbers of Goldenpoint, first of all, a positive EBITDA for EUR 200,000, while in the same six-month period of 2025, the company had a negative EUR 4.2 million EBITDA. The improvement is really material, and projecting this improvement somehow also on the second semester, we could reach more or less EUR 3 million-EUR 4 million EBITDA on the full year. Of course, the comparison with last year is difficult because last year we had just the month of July, so little sales, but very high EBITDA because the EBITDA generation is concentrated in a few months across the year, namely July, August, and then November, December, which are the peaks for the seasonality of Goldenpoint. I move to page number five, where we open more the performance between channels and brands with all plus signs.
We grew both on directly operated stores and on the franchise and B2B channel. We grew both in OVS and in Upim. If we look bottom right to the EBITDA margin, we see very high number because OVS reaches 15.1% EBITDA margin, which is among the best of the industry. Also Upim is very close to 12% after having been around 10% a couple of years ago, so showing a long-term trajectory of improvement. Page number six, we move to the financial side of the results. With a paid working capital pretty stable, we are continuously reducing and improving the receivables also as a consequence of the shift towards the consignment model, for which we hold the ownership of the stock until the moment of the sale to the final customer.
Then, of course, it reduces the payment terms from the client that had already cashed in from the final customer. The big movements are of opposite sign on inventory and trade payables, mostly driven by the euro-dollar that is reducing the amount of the value of the stock on one side, and in the short term, also reducing the amount of payables towards the suppliers. On the stock, we also have some material decrease in absolute terms, both on old stock, thanks to special actions, and on the current collection that moved quicker than usual. The sell-out as of 31st July, which still does not include the last month of sales, was very high. We had this improvement.
While on trade payables, we also have some phasing effects that reduce the total amount of trade payables, of course, to the benefit of the cash generation in the medium term. Page number seven, capital expenditures. In the first semester, including also within these numbers, the inclusion of Goldenpoint that is undertaking a strong investment plan to refurbish all the stores. In all the cities, I think that already the most visible stores of Goldenpoint have been already refurbished to the new format. Then, of course, continuing catching the opportunity to open additional stores both in Italy and abroad. In the first semester, we opened the second store in India. In the second quarter, is already represented here, the second store in India. In Q3, we will see the numbers also for Dubai.
Basically building the rationales, the foundations for further profitable growth in the future. Page number eight is the cash flow. The first half is structurally a cash absorption period, with the second half instead very positive. But the element to point out is that overall the cash generation improves by EUR 15 million versus last year, and it is mostly driven not by temporary or phasing elements, but by the increase in EBITDA, EUR 12.5 million out of the EUR 15 million. Then the discipline and the good performance also on working capital. Page number nine is the picture of this improvement in cash generation with the net debt that reduces by EUR 54 million versus last year, despite also the fact that we increased the amount of cash released somehow to the shareholders through dividends and buyback. Otherwise, the improvement would have been even higher.
The leverage ratio, in whatever way we would like to see it, is very safe, because it is 1.0, 1.1 versus the EBITDA. Also, the treasury shares that we now already have in the portfolio is above the 5% value as of end of September. I conclude on page 11 with the current trading and the outlook. As said by Stefano at the beginning, the second quarter started, especially the fall/winter season, in the second half. The fall/winter season started in a good way, in line with the last two seasons that were very robust. In addition, the margin will further benefit of the euro-dollar comparison fall/winter 2026 versus fall/winter 2025. Operating costs are under control as part of the DNA of OVS. We expect to further improve the results also in the second half of the year compared to 2025.
Thank you very much, and we are open to get your questions.
Thank you. This is the Chorus Call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. We kindly ask to use handsets when asking questions. Anyone who has a question may press star and one at this time. The first question is from Francesco Brilli, Intermonte.
Yes, good evening. Can you hear me?
Yes, we can hear you. Yes, we hear you.
Okay, thanks. Okay, thank you. Thanks for taking my question and congratulations for the very robust set of results. I have three questions. The first one is on margins. So organic growth margin was up above 100 basis points in H1. It was supported, as you mentioned, by FX, but also the mix and sourcing. I was wondering if you could help us understand how much of these improvements are structural, and do you think going forward, particularly looking into 2027, when the FX component and contribution could normalize? The second one is on Goldenpoint. Very positive performance, EBITDA positive, high growth, and the profitability improving quickly. Given these stronger than expected, I would say, performance of Goldenpoint. Has your view on this for the medium term has changed? What are your targets for this line going forward?
The third one is a little bit more strategic, I would say. On organic sales, you grew 6% in H1 against the market, growing 1.5% in the Italian market. It is several years that you are growing above the market, gaining shares. As of today, what gives you the confidence of continuing to structurally outperform the market? You mentioned a little bit during the initial remarks, but I wonder if you can elaborate a little bit more on this. Thank you.
Yes. Thank you, Francesco. Still Francesco giving back answer on the first two elements, and then, of course, Stefano will close up on the strategic one. The improvement in the margin is higher on the consolidated figures because of the higher margin of Goldenpoint, which has a business model conceived around smaller stores with higher margin, higher store costs. This is an improvement that we will see more and more as long as Goldenpoint will be part of the company for the full period. Another element, of course, is that the euro-dollar has been already covered at good ratios, of course, in summer 2027. Also the look on 2027 sees a good coverage, and we are now, of course, in the process of approaching full winter 2027. 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. Of course, the medium-term gross margin on the organic perimeter is supposed to be plus, slightly above the 50%, 51% as shown. On Goldenpoint, we are very proud of the results achieved so far. Of course, it is not that we are aiming at bringing Goldenpoint at breakeven. We are aiming at bringing Goldenpoint to an EBITDA margin of 12%, 13% as the rest of the group. Of course, it is a trajectory. We do not achieve everything in the first six months. The trajectory is positive. There are things that were implemented, things that are still for next year. For instance, we still do not look to colla nt and socks. That will be a topic for improving the performance next year.
This is the view on Goldenpoint. It will require additional one or a couple of two years, let me say, to be at regime also on this acquisition. I would say, as we say in Italian, [Foreign language]. I mean, at least the morning was positive on Goldenpoint.
Regarding the question about how to continue to outperform the market, I think that first of all, I would like to remember that 6% organic growth doesn't mean 6% like-for-like. Organic growth means the growth of OVS, including opening new stores. We mean organic because we want to distinguish from other aspect like the acquisition of Goldenpoint. But within this 6%, I'm happy to say that 3.5% more or less is like-for-like growth. And it is true that we are continuing growing like-for-like in the last four or five years. This will continue, in my opinion, from a rational point of view because of a couple of important elements. The most important element is that OVS is still underrepresented in the segment of the women compared to the market.
The importance of the women segment in the market is 55%, I think, while within OVS, it is below 40%, growing year- after- year. OVS in the past was exaggerated in the size of the kid, which was a point of strength. But with the decrease of birth rate, it was a risk for us. That's why we are super happy in noticing that the investment made in the brand and in strengthening also our product development and style department, design department, creativity, is the reason why the women is growing more than other segment. We are continuing season after season to give more space within the store to the women to the detriment of the kids. And we are noticing that in spite of this, kids' sales remain very robust, very solid. We are not losing like-for-like in kids.
We are maintaining the same turnover than one year before by increasing the sales density. While in the women, we are growing. And what will happen in the future, first of all, the great success of the change of the style within B.Angel is attracting younger customers, very often the same young lady which are buying Shaka s kincare and makeup product. So with a very healthy cross-merchandising, cross-fertilization within the company. Next year, we will almost double the number of SKUs in B.Angel, on the back of the success that B.Angel is generating this year. We will increase the space dedicated to Les Copains, which is today the brand whose sales density is the highest within our assortment. Utopja will increase again, because this year Utopja is making like +15%, +20% like-for-like, and we will dedicate more space to Utopja.
Again, younger generation, which in the past were not looking at OVS. And also Altavia represents a further element of attraction for new customer that were not considering OVS once they had to buy technical and sporting goods at affordable prices. And now they have also OVS as an alternative maybe to Decathlon. Last but not least, within OVS, the beauty department, which cannot promise the recent historical performance of double-digit growth in the last three year, will continue to grow more modestly, but will continue to grow. On the other side, speaking the second biggest portion of our business, Upim is growing. Croff is growing in this moment by 13%, 14% like-for-like. There is a lot of space for new opening of Croff stores, whose profitability has become very interesting.
Upim itself, just this year, we opened seven, eight stores, and we have a run rate for 2027 of about EUR 40 million of new turnover, due to the new openings of Croff and Upim, which this year represents EUR 20 million. We have another EUR 20 million additional turnover only from Upim expected next year. These are the main elements why we believe, but the most important is women. The increase of the women department, thanks to the great appreciation that, in this moment, the Italian women are having versus our collections.
That's very helpful. Thank you.
The next question is from Domenico Ghilotti, Equita.
Good afternoon. A few questions. The first is a follow-up on your comments on the sales performance. If I understand clearly, the women category is the main driver. You mentioned Brazilian kids, so if you can also give us the sense on the men collection. If you can also give a sense on the metrics, what is driving the like-for-like? Is it more traffic, as you said, more conversion, or higher ticket? The second question is on the operating cost in the sense that you were mentioning that you are typically well structured to manage and to keep costs under control. I saw quite significant increase in the first half. On an organic basis, I calculate like EUR 20 million higher operating costs, so between gross margin and EBITDA. I wanted to have some comments from you.
And the last, just a clarification on the current trading when you say that you are in line with last year. We are to assume that so far quarter to date, you are more or less flattish with last year level, and you are expecting a pickup as soon as, let's say, the weather condition are a bit less adverse. Correct?
Okay. Thank you, Domenico, for your question. On the women, what I can say is that the increase of the like-for-like performance is more or less equally spread between traffic, average ticket, and conversion. Traffic is growing the most. We have about 2% of traffic increase. We have another 0.5%, more or less, number of items per ticket, and also the average price increase is contributing to the growth. Average price increase, which is not applicable to the kids, because we want to maintain a very competitive presence in this segment. We don't want to lose the franchise that we have been able to create with the Italian families.
But the price has been increased mostly in Les Copains, which is. And also partially in PIOMBO, and I think that we will continue to operate in this way, because as I said before, our customer are now ready. Because they know that we represent probably the best price to quality combination in the Italian market and also fashion. I would say price, quality, fashion combination in the Italian market. They are asking us to introduce more linen, more wool. For instance, we introduced a much higher amount of cashmere this year compared to the past. The growth in the women will be sustained by all these elements, I think, traffic, conversion, and price also, hopefully in the future. On the men, we didn't mention simply because it was in between.
As of now, in the eight months to date, basically, including the beginning of September, eight months to date, the women is growing like 5%, something like that. The men is growing 2%, maybe something like that, and kids is more or less flattish. Which is very good considering the new entrants of a player like Pepco and Primark, which are super aggressive in kids, and considering the decrease of the birth rate. Let me answer on the last question, because I want to leave the operating cost question to Francesco. The last question regarding the current trading, why we are positive? Because if you ask to the artificial intelligence, which has been the temperature in Italy in the first half of September, and you compare with last year, the answer, unfortunately, will be that the temperature has been higher compared to the very high temperature of last year.
This month, this beginning of autumn/winter, started from a weather point of view, worse than expected. Being able to confirm the good results of the last two years means that the expectation for the next coming days became good. We know that in certain latitude where weather has not been that impactful, the new collection has been appreciated very well. For sure, we have a mix of heavyweight, which can be improved compared to the weather situation that year after year became warmer. Because only in the last couple of days, we have seen in the morning the temperature going below 20, and because we see from north of Italy that the reaction is already very good, while in the south, the temperature still didn't change that much.
We are convinced that in principle, there are all the elements why to think that October and November will be positive. That's why we are happy, even if we are flattish. Being flattish in this condition means doing very well. Then there is also the margin, which is increasing, as Francesco said. The combination of sales and margin is going to be positive. Francesco?
Yes. Thank you, Stefano. On the 5% increase on the operating cost, 1.5% is related to inflation that, of course, we had on some costs, especially on personnel, because we are having in 2026 an additional tranche of the increase of the Contratto Collettivo Nazionale di Lavoro. 2.5% is increase in perimeter, so of course, impacting mostly the store costs. The remaining 1% is related to specific elements, the most important one being marketing. We increased our marketing spending versus the first semester of last year, and this is, of course, also to the benefit of future growth. Summarizing, 2.5% perimeter, 1.5% inflation, and 1% is marketing increase versus last year.
Okay, very clear. If I may follow up just on another topic is you were mentioning the hedging policy that is helping 2027. Where are you today in the hedging?
Nicola?
Of course, we take some opportunities from the last moments, and we are covering all the spring-summer 2027 at an average exchange rate that is a little bit favorable to us compared to the spring/summer 2026. And other way to the autumn/winter 2027, as in this case, with some additional option compared to the current situation.
Okay. Thank you.
The next question is from Carmen Novel, Banca Akros.
Hi. Thank you for taking my question. I hope you can hear me. I have two. The first one is on the costs related to the new international openings. If you can help us quantify a bit the impact on margin. The second one is on the impact of dollar on the full year results, if we can still assume a positive impact at gross profit level of around EUR 10 million and EUR 15 million. Thank you.
Not sure to have completely caught your question regarding international. Can you elaborate again?
If you can help us quantify the impact of the new opening in Dubai, on the margin for the next part of the year.
Very difficult. What we can say is that Dubai opened three weeks ago, and today we are exactly, by chance, by miracle, 100% in line with our budget. But only three weeks. We have no clue of what is going to happen next month and next year because of the political situation. We are learning every day what we miss, what we can improve. The first impression is that if things will continue like this, we have a positive margin in Dubai starting year one, which to me is like miracle. But if it would be negative, could be negative by maybe EUR 500,000, EUR 1 million. That's the worst case scenario. More likely will be positive.
If things will continue like they are doing now, we have a positive margin in Dubai, and maybe we have a EUR 10 million to EUR 15 million incremental turnover because we are talking about a store that is subject to generate more than EUR 10 million turnover in a full year. CapEx has been spent during this fiscal year, so in 2027 Dubai should generate positive results. In term of impact of dollar, we have about EUR 8 million which are visible, okay, already in the half one. Next year, we have a slight advantage compared to this year, so no major impact, basically. Let's say in a different way. Year 2026 has been benefited from the dollar depreciation.
The hedging policies that we put in place, which, as Nicola explained, are as of today covering fully the first half of 2027 and 50% of the second half of 2027, are telling us that the exchange rate for 2027 will be slightly favorable, say equal, so the gross margin improvement generated by the dollar will remain as it is also during next year.
Okay, thank you.
Thank you.
As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question is from Luca Bacoccoli of Intesa Sanpaolo.
Hi. Good morning, everyone. Can you hear me?
Yes.
Okay, good. Some question from my side as well. The first one is on Stefanel. A clarification on the performance in the first semester. You mentioned on the presentation that it was up 11% in the first semester, while in the first quarter, if I am not wrong, was plus approximately 20%. It means almost a stable implied second quarter growth. I was wondering, what is driving this high volatility from one quarter to the next, and what should we expect going forward this year? Then I have a question on Dubai. I was making some very easy calculation, and it seems that the returns for each square meters, given the 2,500 sq m average surface vis-à-vis the surface in Italy.
I was wondering if you can confirm that and if there is a, let us say, a premium price from the same garment that you sell there versus the one sold in Italy. Then the other question is on the free cash flow generation, which was very good. A significant improvement in the first half. Are there any reasons why those improvements might be reversed in the next two quarters? Finally, on Altavia, how big is the brand right now, and what was the first semester growth year? Thank you.
On Stefanel, the answer is very easy. We sold so much during the first half, and we did not buy that much because of Stefanel. I consider Stefanel still a restarting, a relaunch, a turnaround story. We have been very prudent in the sourcing. The sales of the first four months has been so high that we remained without stock for summer. There is not a volatility. There is only maybe an excess of prudence in the intake, which penalize a bit the second portion of the first half, but no major issue, and the collection for the winter is beautiful. Even if in this segment, the market is very challenged and difficult, we have a good feeling on Stefanel. On Dubai, yes, I do not really understand your calculation, but basically I confirm that we have 2,500 sq m.
When I told that the rationale for our expectation on sale is between EUR 10 million and EUR 15 million, it means that we have a forecast of EUR 5,000 per sq m, EUR 4,500 sq m, EUR 5,500 sq m, EUR 6,000 per sq m. Achievable, much higher than Italy, obviously. Driven by the fact that the shopping mall, in normal condition, we know many brand which are operating inside. We have a figure of our competitors, of friends, which are confirming us that the amount of EUR 15 million, for instance, is fully achievable. Maybe not in the first year. The markup is important. We are selling in these three weeks, in line with our budget, with a markup of about 40% compared to Italy. With this figure, we will be profitable. The rent are very high, but the cost of labor is pretty low.
The combination of a very high rent, low cost of labor, and higher margin because of the markup, is generating the expectation of a profitable business, provided that the sales comes obviously. But as of now, as I said, the sales are arriving. In term of cash flow, no adverse effect expected. But because there is no working capital movement generated by payment terms or different policies in sourcing or intake. Basically, no reason why not to continue to believe that we can increase for the full year the cash generation compared to last year. If last year was about EUR 90 million, we believe that this year it might be EUR 100 million maybe. That's what we feel.
The next question is from Domenico Ghilotti, Equita.
Yes. I have two additional question. One is on the capital allocation. Given the, let's say, EUR 100 million free cash flow generation, what is your priority? Could we expect an increase in the dividend? Could we expect a new M&A over the next 12 months or de-leveraging or buybacks? Second question is on store opening contributions. For the first time probably over the last few years, you are mentioning a quite significant, or reporting quite significant contribution from store openings. The 3%, if I understood properly, was organic like-for-like and another, say, 2.5%, 3% new stores. Should we expect this to continue because we have several opportunities, or should we expect a contribution from store openings similar to this level in 2027?
Okay. So contribution. Capital allocation. While I was saying before to you guys that we were expecting that the EUR 90 million generated last year will become EUR 100 million this year, the team was looking at me saying, "No, maybe we will do better." Maybe we will do something more than EUR 100 million. I take the opportunity of your question maybe to correct. To me, EUR 100 million or EUR 106 million or EUR 105 million is the same amount. Maybe for you it's different. For me, it's the same amount. This increase of cash will be used, or this cash flow anyway, will be used surely for dividends. We will continue our dividend policy. In term of buyback, it will depend from the share price, obviously. If the share will move where it should go, in our opinion, our attitude to buy back share will become lower.
Once the share price, like last week, would decrease unexpectedly and without any reason generated by results, we will consider that our third party, because you have to remember that we always have a third party which is working. We are not taking daily decision, but the attitude, obviously, that we pre-agreed with our third party is that because they have to try to operate in a constructive way, they will buy more, and this is what happened. The attitude to buy back share will continue, and the attitude to be generous in dividend distribution will continue. That's why. Because we think that the present capital allocation is appropriate. We don't need a big amount of money for big acquisition. We don't have in our radar big acquisition. Every day, we look at things like brand.
I declared last week, two days ago to Fashion Week, answering to a question of a journalist regarding the accessory. I said, "Yes, if I should find a smarter brand in the accessory, I would be interested in buying this brand." But at which price? Not EUR 50 million, not EUR 30 million. Whatever acquisition we would make in the next coming months or semester would not impact our balance sheet and our cash generation. Also in this way, I answer to you that we don't have major acquisition in our radar.
Yeah.
You asked about the contribution of the new opening. To be honest, we didn't mention sometime because we didn't have the time to elaborate or because we didn't receive question, but we are growing every year in the last 5 year as a combination of like-for-like and new openings. Before I mention the new openings of Upim, for instance, because Upim is growing more than OVS in term of new openings, simply because the market share of Upim is still lower. Upim is targeting more than OVS, the lower social class, let's say. The ones that are less demanding in term of fashion and more demanding in term of affordability. But we are continuing to open OVS stores. We are continuing to open franchisee store. OVS will open more also with Shaka.
We have the plan to open plenty of Shaka stores in the next coming quarters. This also will depend from the attitude of the Korean brand to improve margin condition that I am asking them. Because when I was in Milan, I met all the CEO of the Korean beauty, and I said, "Listen, we are ready to open 200 stores." This I told to them, not to you. We are ready to open 200 stores in Italy because the 10 stores that we opened as of now, I think 10, or yesterday we opened the 11th store, I think. We have very high sales density. But in order to be very profitable, because we want to be very profitable, not modestly profitable, we need another 3 basis point, 4 basis point of margin increase. 300 basis points, sorry, not 3 basis point. Let's see what happen.
There is room for OVS to open plenty of Shaka stores, for OVS to still open a bunch of full format in Italy and also to move from smaller to bigger store, which is something that now we can do because we have not enough space for all creativity and the brand that we have in the women segment, as I said in the beginning. So the story of opening space is still valid. We know that Zara Inditex group is growing in Italy, and they are not growing only with the like-for-like. They are also growing by opening some stores. So it's a mix of factor, and we will continue to activating both, hopefully the like-for-like because of what I told, but also the new openings.
Okay. Thank you.
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Thank you for your question, and hope to talk to you in three months from now for the next conference. Thank you very much. Thank you. Have a nice day.
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