...December 19, 2025 This report does not constitute a rating action. Flos B&B Italia Group S.p.A.'s posted weak operating performance in the first nine months of 2025 despite sequential improvement in third quarter of the year. During the first nine months of 2025, pro forma revenue declined 2.7% year over year to 526.3 million (pro forma, excluding Fendi Casa) as reduced order volumes from trade partners and conservative inventory management weakened the wholesale channel (accounting for close to 50% of sales). However, contract segment sales growth partially offset this. Reported sales for core brands decreased 3.3%, with Louis Poulsen posting positive sales evolution, Flos marginally down, and B&B Italia declining by a high-single-digit percentage. Reported sales for emerging brands (Lumens, Audo and DQM) contracted 4.8% over the same period largely due to the perimeter change following the termination of the Fendi Casa partnership in July 2025 and contraction in first-half 2025. Reported...
