Income tax benefits / (expenses)

12 Months Ended

Dec. 31, 2025

11.Income tax benefits / (expenses)

Income tax benefits / (expenses)


		For the years ended December 31,
(Euro thousands)		2025		2024*		2023*
Current taxes		(44)		(2,599)		(1,069)
Deferred taxes		15,819		(487)		(2,254)
Income tax benefits / (expenses)		15,775		(3,086)		(3,323)

*	In accordance with IFRS 5, the income tax benefits / (expenses) information for 2024 and 2023 has been restated, with the Caruso Brand presented as a discontinued operation (see Note 12).

Breakdown of difference between statutory and effective tax rates:

The effective tax rate is as follows:


		For the years ended December 31,
(Euro thousands)		2025		2024*		2023*
Loss before tax		(267,138)		(185,920)		(141,976)
Total income tax benefits / (expenses)		15,775		(3,086)		(3,323)
Effective tax rate		5.91	%	(1.66)	%	(2.34)	%

The reconciliation between the Group’s theoretical tax and its income taxes is presented in the table below:


		For the years ended December 31,
(Euro thousands)		2025		2024*		2023*
Loss before tax		(267,138)		(185,920)		(141,976)
Group’s weighted theoretical tax (calculated in absolute values on the basis of subsidiaries’pre-taxable income / loss)		74,361		51,444		37,737
Tax effect on:
Differences between foreign tax rates and the theoretical applicable tax rate and tax holidays		(11,835)		(6,261)		(8,257)
Taxes relating to prior years		51		(772)		(705)
Deferred tax assets not recognized		(61,879)		(51,525)		(34,021)
Reversal of deferred tax assets arising from impairment of brand value within intangible assets		16,063		—		—
Other tax items		(986)		4,028		1,923
Total income tax benefits / (expenses)		15,775		(3,086)		(3,323)

Deferred tax assets and deferred tax liabilities

Deferred taxes reflect the net tax effect of temporary differences between the book value and the taxable amount of assets and liabilities.

Breakdown for deferred tax assets and deferred tax liabilities:


						Recognized in
		At		Recognized		other		Exchange		At
		December 31,		in profit or		comprehensive		difference		December 31,
(Euro thousands)		2024		loss		loss		and other⁽¹⁾		2025
Deferred tax assets arising on:
Employee benefits		959		82		(81)		(236)		724
Property plant and equipment		254		(13)		—		—		241
Deferred tax assets on rental contracts; if any		6,981		(1,089)		—		(49)		5,843
Intangible assets		1,252		—		—		—		1,252
Inventories		4,170		(129)		—		(1,686)		2,355
Provisions and accrued expenses		2,814		—		—		(1,282)		1,532
Receivables and other assets		621		6		—		—		627
Tax losses		217		—		—		—		217
Other		10		173		—		(128)		55
Total deferred tax assets		17,278		(970)		(81)		(3,381)		12,846
Deferred tax liabilities arising on:
Deferred tax liabilities on rental contracts; if any		3,685		(457)		—		(627)		2,601
Intangible assets		51,994		(16,063)		—		—		35,931
Receivables and other assets		83		(31)		—		—		52
Other		1,308		77		—		—		1,385
Total deferred tax liabilities		57,070		(16,474)		—		(627)		39,969


						Recognized in
		At		Recognized		other		Exchange		At
		December 31,		in profit or		comprehensive		difference		December 31,
(Euro thousands)		2023		loss		loss		and other⁽¹⁾		2024
Deferred tax assets arising on:
Employee benefits		885		75		1		(2)		959
Property plant and equipment		313		(59)		—		—		254
Deferred tax assets on rental contracts; if any		11,098		(4,295)		—		178		6,981
Intangible assets		1,252		—		—		—		1,252
Inventories		3,934		229		—		7		4,170
Provisions and accrued expenses		2,864		(50)		—		—		2,814
Receivables and other assets		709		(88)		—		—		621
Tax losses		182		35		—		—		217
Other		638		(629)		—		1		10
Total deferred tax assets		21,875		(4,782)		1		184		17,278
Deferred tax liabilities arising on:
Deferred tax liabilities on rental contracts; if any		8,454		(4,933)		—		164		3,685
Intangible assets		51,994		—		—		—		51,994
Receivables and other assets		14		75		—		(6)		83
Other		790		518		—		—		1,308
Total deferred tax liabilities		61,252		(4,340)		—		158		57,070

(1)	“Exchange difference and other” includes foreign exchange differences and the reclassification of Caruso’s deferred tax under “Assets/Liabilities held for sale”.

Each company in the Group decides to recognize deferred tax assets by assessing whether the conditions exist for the future recoverability of such assets by taking into account the basis of the most recent forecasts.

Based on the Group’s best estimate, for jurisdictions subject to the Pillar II rules, the Group has concluded that no Qualified Domestic Minimum Top-up Tax accrual is required to be recognized as of December 31, 2025.

The following table provides the details of tax losses carried forward for which no deferred tax assets were recognized:


	At December 31,
(Euro thousands)	2025	2024*
Expiry within 5 years	73,705	59,018
Expiry over 5 years	162,540	168,994
No expiration	1,058,255	976,213
Total tax losses carried forward	1,294,500	1,204,225

The Group’s management updated the deferred tax assets recognized on tax loss carry forward taking into consideration, for their recoverability, the macroeconomic scenario and the business developments of each of the Group’s companies.