MILAN — Italian eyewear maker Marcolin SpA on Thursday said it had a net profit of 1.4 million euros, or $2 million, in the third quarter, reversing a year-earlier loss of 400,000 euros, or $500,000, as sales were boosted by strong demand in Asia and by the popularity of high-end collections like Swarovski.
The company — which produces glasses under license for Tom Ford, Tod’s, Roberto Cavalli and Dsquared2, among others — said revenues increased 10.3 percent on the year-ago period, to 43.8 million euros, or $62.2 million.
In the first nine months of the year, net profit increased 24 percent, to 17.3 million euros, or $24.2 million, as revenues climbed 10.7 percent to 169 million euros, or $236.6 million. Sales in Asia, up 38 percent, were particularly strong and the company said the area is “considered strategic for the growth of the group.”
In terms of markets, Europe put in a 3.7 percent sales increase, thanks especially to the strong performance of France, Germany, Turkey and Russia, the company said. Other Mediterranean markets remained sluggish, Marcolin said, as consumers remained pressured by the continuation of the economic crisis. In the U.S., sales increased 2.4 percent; the increase would have been 9.4 percent but was “penalized by exchange rate trends with the euro.” Other markets, classified under “rest of world,” also put in a strong performance, chalking up a 23.2 percent revenue increase.
The company — in which Tod’s SpA owner Diego Della Valle and his family own a large stake — said the jump in profitability in the January-September period was driven by “measures taken in previous periods to improve marginality,” which focused on “product cost, internal productivity and quality, with positive returns in terms of efficiency.” The improvement was also due to the “increase in the sale of products relative to new brands, sold with higher margins.”
Commenting on the results, Vito Vavaro, chief executive officer of Marcolin, stated, “The results of the first nine months of the year are excellent and confirm the validity of the company’s strategies and plans. The economic crisis in Europe leads [the company to] believe there may be a slowdown in the business in the last quarter, even though 2011 will be another year of record growth in sales and profits for the Marcolin Group.”