Safilo has stronger Q3 despite weakness in Asia

Luxe eyewear giant Safilo saw its business in the US recovering in Q3 and Europe beginning on the road to recovery, both of those regions offsetting a weaker Asian market and the loss of some key licences (such as Dior, Max Mara and Fendi).

In the three months to September 30, net sales rose 2.6% to €226.6 million year-on-year and 11.1% vs 2019 currency-neutral. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) surged by a third to €19.1 million year-on-year.

And the company expects more good news ahead — despite supply chain issues and the impact of inflation — with full-year net sales expected to be up in mid-single-digits currency-neutral compared to 2019. EBITDA for the year should also beat that recorded in 2019.

CEO Angelo Trocchia said: “Positive consumer trends in our key markets and product categories allowed us to close another strong quarter of recovery and growth despite the dampening effect of a still complex environment in a number of countries and our challenging comparison bases in the midst of our brand portfolio overhaul.”

The positive developments on sales overall were coupled with further progress in its cost-saving programme. And signing a new licensing agreement with Chiara Ferragni also gave it plenty of hope for the future.

The company makes eyewear under its own brands and for outside labels including, Missoni, Marc Jacobs, Moschino, Tommy Hilfiger, Levi’s and Isabel Marant.

Q3 sales of such brands were helped by the online boom that meant sales via webstores made up 13% of the total rather than 3% two years ago.

As mentioned, regionally, North America was positive with sales up 1.8% year-on-year at €115.1 million and up 44% compared to two years ago. The region accounted for 50.8% of revenues.

European sales rose 4.5% on the year to €82.8 million, but were over 13% down compared to Q3 in 2019.

Asia Pacific sales fell 28.9% to €11.3 million as lockdowns and those lost licences weighed on demand.

Safilo has stronger Q3 despite weakness in Asia

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