MILAN — Organic business and the addition of the Polaroid brand helped Safilo Group SpA compensate the phasing out of the Giorgio Armani Group’s licenses in the first quarter of the year, contributing to growing profitability and revenues.
In the three months ended March 31, the Italian eyewear maker posted a 12.1 percent increase in net profit, which reached 13.4 million euros, or $17.7 million, compared with 12 million euros, or $15.7 million, in the corresponding period the year before.
Revenues gained 2.9 percent to 297 million euros, or $392 million.
Dollar amounts have been converted at average exchange for the periods to which they refer.
Safilo produces and distributes eyewear for luxury labels including Dior, Gucci, Marc Jacobs, Bottega Veneta and Saint Laurent, in addition to its own Safilo and Carrera brands.
“We started 2013 with positive results, ending the first quarter with a significant increase in our organic business,” said chief executive officer Roberto Vedovotto. “This was driven by the double-digit sales growth of the go-forward brands coupled with the strengthening of the overall performance in our key markets. On top of this, we were able to manage effectively the final exit of the Armani licenses, improving Safilo’s economic and capital structure with no impact at the top-line level.
“In a still-volatile market, we are glad with the results we are achieving, testifying to the strength of our long term strategy.”
Earnings before interest, taxes, depreciation and amortization rose 7.5 percent to 34.7 million euros, or $45.8 million.
Operating profit totaled 25.7 million euros, or $34 million, up 11.4 percent compared with the same period the previous year.
Despite the difficult economy in Europe, sales in the region were up 8.3 percent to 128.2 million euros, or $169.2 million.
In the period, Safilo continued to achieve double-digit sales growth in the emerging markets of the area, with Russia increasing organically around 18 percent.
Sales in the U.S. gained 1 percent, reaching 101.2 million euros, or $133.6 million.
Safilo said the organic performance of the North American area “proved to be one of the strongest among the mature markets.”
The company said “the year started positively also in the Asian markets, where go-forward brands were up double digits” even though total sales were down 5.9 percent to 46 million euros, or $60.7 million.
“The progression recorded by the organic business has allowed the group a good absorption of the sales and marketing costs, which slightly increased in the quarter compared to the same period in 2012 due to growth and expansion projects on the strategic licensed and Safilo brands,” said Safilo. The firm singled out China, Hong Kong and Japan, as well as Singapore and Malaysia, and the travel retail channel as showing “the most significant progress.”
Investments in the quarter totaled 4.7 million euros, or $6.2 million, and were mainly related to regular industrial maintenance and renewal activities.
As of March 31, Safilo reduced its net debt, which stood at 220.4 million euros, or $291 million, compared with 243.2 million euros, or $318.6 million, at the end of March 2012.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews