The Italian eyewear manufacturer and the American brand under the The Gap Inc. umbrella have decided to renew their global eyewear licensing agreement for the exclusive design, development, production and distribution of the label’s 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 2006, with the second renewal due to end on Jan. 31, 2019.
The deal falls amid positive projections for Banana Republic. Earlier this month, the apparel company debuted its fall ad campaign, one rooted in the brand’s heritage and 40 years in business after reporting, in mid-August, margin improvements and its third consecutive quarter of comparable sales gains with total sales reaching $604 million, up from $579 million.
As reported, Safilo Group posted a weak first-half performance in August. In the six months ended June 30, the adjusted net loss totaled 10.4 million euros, compared with a net loss of 6.6 million euros in the first half of 2017, and sales registered a 10 percent decrease to 492.2 million euros, dented especially by continued weakness in the U.S. and in Europe.
Safilo designs and manufactures eyewear collections for a range of labels including Dior, Fendi, Givenchy, Max Mara, Marc Jacobs and Tommy Hilfiger, among others, as well as for its proprietary brands Carrera, Safilo and Polaroid.