THIRD DEAL: Hugo Boss and Safilo are in it for the long haul — at least through 2025.
The Italian eyewear manufacturer and the German brand have decided to renew their global eyewear licensing agreement for the exclusive design, development, production and distribution of the Boss and Hugo labels’ ophthalmic and sunglass collections.
The deal marks the third in a row signed by the two companies and will run until Jan. 31, 2025. The licensing agreement was originally established in 2005, with the second renewal due to end in 2020.
“This renewal builds on the strength of a trustful and long-lasting business partnership,” commented Angelo Trocchia, Safilo’s chief executive officer. “The Boss and Hugo collections further reinforce our premium fashion proposition, giving us the opportunity to accelerate this segment’s expansion,” he added.
Ingo Wilts, chief brand officer at Boss, lauded Safilo’s “scale and the capabilities to implement our strategic vision to continually add value to our brands also through product categories such as eyewear, both optical and sun, which continue to gain importance as a fashion accessory especially in the digital world where we can count on our very engaged, digital-savvy global community.”
As reported, Safilo Group SpA is on track with its 2020 plan to return to top-line growth as it posted a profit of 8.7 million euros in the first six months of the year compared with a loss of 4.3 million euros in the same period last year. The figure is net of the new IFRS 16 accounting rule.
In the six months ended June 30, revenues at the Italian eyewear group rose 6.5 percent to 495.9 million euros, compared with 465.7 million euros in the same period last year.
Safilo designs and manufactures eyewear collections for a range of labels including Dior, Fendi, Givenchy, Max Mara, Marc Jacobs, Tommy Hilfiger and Kate Spade, among others, as well as for its proprietary brands Carrera, Safilo and Polaroid.
In July, after 23 years, Safilo revealed that the licensing agreement for the Dior and Dior Men collections of sunglasses and optical frames will end at its expiry date of Dec. 31, 2020, in view of the vertical integration of Dior’s parent group LVMH Moët Hennessy Louis Vuitton and the establishment of a joint venture with Marcolin, called Thélios, inked in 2017.