Investments in retail and global expansion dented Italia Independent Group SpA’s profitability, which was offset by gains in revenues in the first half of the year. Reflecting the company’s changes and growth, Italia Independent has initiated the procedures to be listed on the Mercato Telematico Azionario of the Italian Bourse. The MTA is Italy’s leading Equity Market dedicated to mid- and large-size companies. Italia Independent was publicly listed on the AIM Italia Alternative Capital Market, a segment of the Italian Stock Exchange, in the summer of 2013. “This was our ambitious goal even back then,” cofounder and chief executive officer Andrea Tessitore told WWD. “I said it from the first day of the listing: It was not a destination but a step in our path.” The entrepreneur said he was hoping for the new listing in 2016. “The market conditions are one of the fundamental factors, but this is the crowning element of a journey that began in 2007. We are ready.”
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In the six months ended June 30, net profit decreased 19 percent to 727,000 euros, or $850,590, from 898,000 euros , or $1.2 million in the same period last year.
Revenues rose 34.7 percent to 25 million euros, or $29.2 million, compared with 18.5 million euros, or $25.3 million, mainly through the growth of its eyewear segment. This represented 86 percent of sales, compared with 82.6 percent in the first half last year.
“The brand continues to grow in a moment of market turbulence, both in Italy and abroad,” said Tessitore, who cofounded the company with Lapo Elkann. “We are confident that this growth will continue in the next months also in light of the important agreement signed in the last few months that will provide further visibility and credibility to our brand at an international level.”
Earlier in September, Italia Independent inked a four-year agreement with Adidas to produce eyewear for the Adidas Originals brand.
In the six months, exports represented 46.5 percent of eyewear sales.
The group’s eyewear segment grew 43.9 percent in Italy to 11.4 million euros, or $13.3 million. Spain, France and Germany also posted a solid performance, climbing 6.2 percent to 5.1 million euros, or $6 million. Tessitore said the agreement with Adidas will help boost sales in Germany. Revenues in the U.S. and in the rest of the world totaled 4.8 million euros, or $5.6 million, up 26.3 percent.
“Italy is the pillar of the company,” said Tessitore, “but there is a good balance in markets and our attitude is toward internationalization.”
“The U.S. is still small, but Italia Independent has always believed in that market and invested in it with two stores so far and a local structure. It is a matter of resilience, time, patience and determination,” Tessitore said.
Earlier this year, the company introduced the EyeEye line, a new family of products at entry price level, and Tessitore defined the collection “an important success.”
In the six months, earnings before interests, taxes, depreciation and amortization climbed 19.2 percent to 4 million euros, or $4.7 million.
Operating profit decreased 19.5 percent to 1.8 million euros, or $2.1 million, impacted by the amortizations linked to the opening of new points of sales and the restructuring of the headquarters in Milan and Venaria, near Turin.
Investments and the ongoing internationalization of the company and the opening of new stores contributed to a negative financial position of 19.5 million euros, or $22.8 million, compared with 10.3 million euros, or $13.7 million, at the end of December last year.
Dollar amounts are converted at the average exchange rate for the periods to which they refer.