Eyewear giant Safilo has released a Q1 update, highlighting strong performance in Europe and emerging markets, but softer sales in North America. Despite this, net sales increased by 1.6% to €287.2 million, while gross profit grew by 7.9% to €167.8 million. Adjusted EBITDA also saw an increase of 1.3% to €32.4 million.

Safilo’s organic sales were driven by double-digit growth in brands such as Carrera, Polaroid, Carolina Herrera, and David Beckham. Hugo Boss and Tommy Hilfiger also made positive progress. However, North America experienced a decline of 3.4% in sales, with entry and mid-tier price points and sunglasses being particularly affected by subdued order-taking and unfavorable weather conditions.

On the other hand, Europe witnessed a 3.8% increase in sales, with strong growth in the main European markets offsetting the decline in revenues from the GrandVision chain. Italy, Spain, France, and Central and Eastern European markets showed robust revenue growth. Carrera and Polaroid also saw significant sales growth in the region.

The Rest of the World saw a notable increase of 20.3% in net sales, driven by strong commercial development in Brazil, Mexico, India, and the Middle East. However, Asia Pacific reported a decline of 3% in net sales due to weak business trends in China. Sales in the region are expected to improve with events such as the Shanghai optical fair and the gradual recovery of tourist flows in China and Australia.

CEO Angelo Trocchia expressed satisfaction with the Q1 results, emphasizing the success of Safilo’s own brands and core licenses in emerging countries and Europe. Despite the challenges faced in certain markets, the company remains optimistic about its future growth potential.

Links:
1. Safilo Eyewear Brands
2. Safilo Press Releases