MILAN — Shares of Italy’s Safilo Group SpA fell to their lowest-ever level on the Milan Bourse Thursday, a day after the company revised down its full-year outlook after the declining dollar and a weak performance in Europe reduced second-quarter earnings by more than a third.
Safilo’s stock dropped 16.1 percent to 97 cents euro, or $1.51 at current exchange.
On Wednesday, the eyewear company, which has licenses with Giorgio Armani, Dior, Gucci and Valentino, among others, cut its revenue growth forecast to 4 percent, from 7 to 8 percent at constant exchange, and adjusted the net income target to 3 to 3.5 percent of sales, from 4.5 to 5 percent.
The group also said it now expects earnings before interest, taxes, depreciation and amortization to reach 13.5 to 14 percent of revenues, compared with a previous estimate of around 15 percent.
Net profits slumped nearly 37 percent — for the second consecutive quarter — to 7.9 million euros, or $12.4 million at average exchange, while sales dipped 4.7 percent to 310.9 million euros, or $486 million. At constant exchange, revenues gained 1.8 percent.
The figures missed analysts’ estimates and led to a swath of downgrades, with investors losing confidence.
“The first half of the year was characterized by strong volatility in consumer patterns, above all in Europe, our reference market,” Safilo vice chairman and chief executive officer Massimiliano Tabacchi said. “We believe that the European market will continue to remain weak, even in the upcoming months, and we are therefore looking to the second half of the year with greater caution.”
Sales in Europe fell 6.9 percent to 152.3 million euros, or $238.1 million, with Spain, the U.K. and Germany again hit by a slowdown in consumer spending. The company noted Italy registered half-yearly results in line with the first six months of the previous year, thanks above all to the strong performance of the Carrera sunglasses collections. These declines were compensated for, in part, by gains in Asia Pacific — notably China and South Korea — where second-quarter sales gained 14.6 percent to 44 million euros, or $68.7 million, following the opening of two directly operated stores, dedicated principally to prescription eyewear sales.
Revenues in the Americas fell 3.3 percent to 106.4 million euros, or $166.3 million, although Safilo noted sales in dollars — which represent 40 percent of the company’s business — had been penalized by the negative impact of the currency’s 15 percent slide against the euro in the first six months of this year.
“In the American market, we continue instead to achieve significant results,” Tabacchi said.
Tabacchi added he expected Gucci Group to renew its contract with Safilo “as soon as possible,” dampening speculation the eyewear company could lose the deal to Luxottica Group SpA — stemming from the loss of the Stella McCartney license to Luxottica in April.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye