Safilo, the Italian eyewear group, has reported positive results for the first quarter of 2022, with a notable increase in organic sales. The company saw a 14.3% growth in organic sales, which CEO Angelo Trocchia expressed satisfaction with. Net sales also saw significant growth, with an 8.4% increase compared to the same period in 2021, contributing to improvements in overall profitability. Safilo’s net sales for Q1 2022 reached €282.6 million, representing a 12.4% increase at current rates.

The strong growth in organic sales can be attributed to the performance of Safilo’s proprietary brands, particularly Smith and Carrera, as well as the positive start of the year for Polaroid. Among the licensed brands, Tommy Hilfiger, Kate Spade, and Hugo Boss experienced sustained growth. Additionally, newer additions to the brand portfolio, including David Beckham, Missoni, Isabel Marant, and Under Armour, are gradually gaining market share in their respective regions.

Safilo also introduced new eyewear collections by Carolina Herrera, Dsquared2, and Chiara Ferragni in Q1 2022, which have been well received in the market. These new collections compensated for the non-recurring revenue generated in the same period last year.

The frames business of Safilo saw positive growth, with a 7.9% increase at constant exchange rates and a 5.2% increase in organic terms. The group’s main distribution channel, independent opticians, played a significant role in driving this growth. Sunglasses sales also performed well, with a 5.1% growth at constant rates and a 19.8% growth in organic terms, driven by strong demand in Europe. Smith’s performance eyewear continued to experience double-digit growth, both in specialist sport equipment stores and through its direct-to-consumer online activity.

Safilo’s online business as a whole increased by 9.4% in Q1 2022, supported by sales from pure-play e-commerce clients. CEO Angelo Trocchia highlighted the encouraging demand in Europe and progress in key emerging markets in Latin America and the Middle East. North America remained strong despite facing tough comparisons. However, the company’s performance in Asia was impacted by new pandemic restrictions.

Despite the challenges faced due to the pandemic, inflation, and the conflict in Ukraine, Safilo remains confident in the resilience of the eyewear sector and the effectiveness of its growth strategy for 2022. Financially, the company saw significant net income growth and an improved profit margin in Q1 2022. Gross profit increased by 22.8% to €155.5 million compared to the same quarter in 2021, while the gross margin improved to 55% of sales. Safilo’s net debt slightly increased to €109.1 million as of March 31, 2022, reflecting typical seasonality in working capital flows.

Overall, Safilo’s strong Q1 results demonstrate the effectiveness of its brand portfolio and growth strategy, positioning the company for continued success in the eyewear market. Despite ongoing challenges, the group remains optimistic about its sales and margin growth for the rest of 2022.

Useful links:
Safilo Official Website
Safilo on Reuters