NEW YORK — Hit by a higher tax rate, Italian eyewear manufacturer De Rigo SpA weathered a 10.1 percent drop in profits during the first half of 2003.
For the six months ended June 30, net income declined to $9.7 million from $10.8 million in the prior-year period. Dollar figures have been converted at current exchange as the firm reported net income of 8.5 million euros against 9.4 million in the first half of 2002.
However, operating profits picked up 2.4 percent to $22.1 million, or 19.3 million euros, from $21.6 million, or 18.8 million euros. The increase in profitability came from EID, the joint venture with Prada terminated in July, which contributed about $2 million, or 1.7 million euros, in operating profits versus a break-even performance during the first six months of 2002. Prada, as reported, bought out De Rigo’s 51 percent stake in EID and subsequently sold the enterprise to Luxottica SpA.
As reported, De Rigo’s first-half sales declined 0.3 percent to $313.6 million, or 273.4 million euros, from $314.4 million, or 274.1 million euros. Retail accounted for 66.8 percent of sales in the first half of this year versus 67.6 percent in the comparable 2002 period.
Gross margin declined to 60.2 percent of sales in this year’s first half versus 61.6 percent last year.
In a statement, Ennio De Rigo, chairman of the group, noted the effects of events “out of our control, like SARS and the war in Iraq, are behind us.”
He added, “Retail distribution is showing a strong growth in local currency, even if our significant investments in marketing initiatives are cutting into our profitability. The joint venture with Prada has been successfully resolved, ending a difficult investment for our company, as the joint venture had not turned a profit for a long time.”
Improving economic conditions have made the firm “optimistic about an increase in the sale of sunglasses” during the back half of the year. In addition to the recent signing of Formula One racer Michael Schumacher to back the Sting brand, officials at the firm “await further developments over the next few weeks to increase the visibility of the Police brand around the world,” De Rigo said.
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)
Discovery is collaborating with British pop artist @philipcolbert on a new line of clothing and accessories called Discovery Shark. The collection, which will launch next summer for Shark Week’s 30th anniversary, features a whimsical line of women’s and men’s bomber jackets, sweatshirts, bags and more. #wwdfashion
“I’m always a big champion of a female rapper, and I’m glad to see a new voice that feels unique and authentic that’s coming up, and I think we’re going to see more great things from her,” said @itsjeremyscott about @iamcardib, who performed at @moschino’s Art Basel Miami Beach party last night. #wwdeye (📷: @lexieblacklock)
@janellemonae’s “What’s Your Frequency?” room in @refinery29's #29Rooms made its debut this week at the opening of the Los Angeles art exhibit. “It’s about the ongoing conversation around mass surveillance, the weaponization of technology and cultural uniformity. My space was created so that we can come together and talk about the complexities of our humanity,” said Monáe. #wwdeye (📷: @bucknerphoto)
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)