MILAN — Italian eyewear manufacturer Safilo Group SpA on Wednesday reported its first third-quarter net profit since 2007 even as revenues in the period remained flat.
In a statement released after the close of trading in Milan, where Safilo is listed, the company said it had a 1.7 million euro, or $2.2 million, net profit for the period compared with a loss of 600,000 euros, or $750,000, in the same three months of 2012.
Reported net sales decreased 2.3 percent in the three months to the end of September, to 243.4 million euros, or $321.3 million, compared with 249.1 million euros, or $311.4 million, in the year-ago period.
Dollar amounts have been converted at average exchange rates for the periods to which they refer.
At constant exchange rates, Safilo said, net sales were up 2.9 percent, “with the organic business more than offsetting the significant negative impact of the absence of the Armani brands, phased out at the end of 2012.”
Safilo pointed to a 17 percent jump in organic sales growth in the core sunglass and prescription frame segments as proof of its ability to leverage “its wide portfolio to replace the brands terminated in 2012.”
The company — which produces prescription and sunglass frames for licensed brands including Alexander McQueen, Banana Republic, Dior and Marc Jacobs, as well as for owned brands including Safilo, Carrera and Polaroid — pointed to “global growth of the organic sales volumes, combined with improved price/mix effects and lower levels of obsolescence” as elements that helped boost profitability in the period.
In geographic terms, Europe — the company’s second largest market in the quarter, representing some 40 percent of total revenues — remained the lead sales driver, “with France, Germany and the U.K. in the lead,” the company said. Turnover in the region increased by 6.3 percent on the year-earlier period, at current exchange rates, reaching 96.8 million euros, or $127.8 million.
Echoing an issue reported by other companies with significant business interests in North America, Safilo said that its performance in the region was affected by the strengthening of the euro against the dollar. The Americas represented just over 45 percent of total sales in the three-month period.
However, the company said that it “continued to experience organic growth, both in terms of sales of prescription frames through independent opticians…and in terms of sunglasses through the most important department stores,” where results improved versus the second quarter.
Total turnover in the Americas region in the third quarter was 109.7 million euros, or $144.8 million, down 5.2 percent on the year-earlier; at constant exchange rates, sales were up 1.7 percent.
Performance in Asia (14 percent of total group sales in the third quarter) was also impacted by exchange rates, especially the “significant depreciation of the yen versus the euro and by the reduction in sales resulting form the termination of the Armani brands that were of over proportional significance for this region.”
Assouline is paying homage to the late Azzedine Alaïa with a reprint of "Alaïa Livre de Collection.” The book is comprised of photographs of the designer's summer 1992 runway show with models Christy Turlington Burns, Naomi Campbell and Tyra Banks, pictured here at right. #wwdfashion #alaia #tyrabanks
Fall 2018 accessories take on a painterly hue, with Nebulas Blue among Pantone’s top 10 colors of the season. (📸: @jonghyupstudio ; editor: @twallz21 ; stylist and set designer: @haideefindlaylevin ) #wwdaccessories
@americanapparelusa is relaunching the brand outside of the U.S. today, opening its online store to more than 200 countries. The company is also contemplating a return to brick-and-mortar, though details have not been confirmed. In tandem with the expanded distribution is a recasting of a social media ad campagn, called “Back to Basics,” pictured here, with a focus on diversity and a cast of models above the age of 21. Read more on WWD.com #wwdnews #wwdfashion
Exclusive: @britneyspears is continuing to expand her brand. The pop icon, who appears in @kenzo ’s latest campaign, is partnering with Epic Rights to launch a line of branded merchandise. Read @hernameislex ‘s story, link in bio. #wwdnews #britneyspears
The Duchess of Cambridge channeled Princess Diana’s look upon giving birth to Prince Harry, when she and the Duke of Cambridge departed the hospital with the new baby Prince this afternoon in London. #wwdeye #princeofcambridge
The new Prince of Cambridge has arrived! The Duke and Duchess of Cambridge posed with the 8-pound newborn. She wore a look from one of her go-to designers, @jennypackham. Tap link in bio for more. #wwdeye #princeofcambridge
Jewelry label @alisonlou has made a name for itself with fine jewelry that speaks to the Millennial market. Now @twallz21 reports that the label is bringing those playful ideas to a new affordable line of lucite hoops with the launch of Loucite by Alison Lou. Here’s a look from the line modeled by @emrata. #wwdaccessories
@sarahjessicaparker and @gilt are teaming up on a bridal ready-to-wear line. Tomorrow, Parker will launch SJP by Sarah Jessica Parker Bridal — and as part of the launch, Gilt will offer 15 exclusive styles from the SJP by Sarah Jessica Parker footwear collection that were designed to complement the new line. Made out of 10 styles, the line is designed for a variety of occasions, from bridal showers to receptions. Get more details on WWD.com #wwdfashion