MILAN — Safilo Group SpA on Tuesday reported a contraction in full-year total net sales following the loss of some licenses.
In a short statement released after the close of trading in Milan, where the eyewear maker is listed, Safilo said net sales in 2016 were 1.25 billion euros, or $1.35 billion, down 2 percent (or 1.2 percent at constant currencies) “as a result of the negative impact of the brands that the group stopped servicing in the year.”
Among these is Gucci, a license that ended in December, two years earlier than planned and that represented some 15 percent of the group’s revenues from the start of the year through the third quarter.
However, Safilo pointed out that sales in its so-called “going forward” portfolio increased a healthy 3.6 percent, at constant currencies.
In the fourth quarter, revenues decreased 1.7 percent (at current and constant exchange rates) to 313.7 million euros, or $338.2 million, while sales at the “going forward” brands increased slightly on the year-earlier period, up 0.5 percent, at constant exchange.
In geographic terms, the company reported a steep 22.3 percent drop in full-year sales in Asia, which represents more than 9 percent of total group turnover. Sales in North America, which represents more than 40 percent of group turnover, decreased just over 4 percent, the company said. Europe — the group’s largest market, representing just shy of 43 percent of total turnover — reported sales growth of 7.1 percent while “Rest of World” sales increased just over 4 percent. All figures are at constant currencies.
The performance in the fourth quarter was similar in all markets, except in Asia, where the sales drop was even steeper, at 30.8 percent.
The company, which produces and distributes eyewear under license for brands including Fendi, Dior and Jimmy Choo, as well as house brands Carrera, Polaroid and Safilo, said the results were preliminary; final full-year and fourth-quarter figures will be released March 15.