Safilo, the luxury eyewear giant, has announced a stronger performance in the third quarter, despite facing challenges in the Asian market. The company experienced recovery in its US business and observed positive developments in Europe during this period. These factors helped offset the impact of a weaker Asian market and the loss of significant licenses, such as Dior, Max Mara, and Fendi.

In the three months ending September 30, Safilo’s net sales increased by 2.6% to €226.6 million compared to the previous year. On a currency-neutral basis, net sales were up by 11.1% compared to 2019. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also showed significant improvement, surging by a third to €19.1 million year-on-year.

Despite facing supply chain issues and the impact of inflation, Safilo remains optimistic about its future performance. The company expects full-year net sales to grow in mid-single digits on a currency-neutral basis compared to 2019. It also anticipates that its EBITDA for the year will surpass the figures recorded in 2019.

Safilo CEO Angelo Trocchia attributed the positive results to favorable consumer trends in key markets and product categories. He acknowledged the challenging environment in various countries but pointed out that positive consumer trends and the brand portfolio overhaul contributed to the company’s success.

During the quarter, Safilo made progress in its cost-saving program and signed a new licensing agreement with Chiara Ferragni, which holds promising prospects for the company’s future. Safilo produces eyewear under its own brands and licensed labels, including Missoni, Marc Jacobs, Moschino, Tommy Hilfiger, Levi’s, and Isabel Marant.

The online boom played a vital role in driving sales for Safilo’s brands during the third quarter, with webstore sales accounting for 13% of the total, as compared to just 3% two years ago.

North America displayed positive performance, with sales increasing by 1.8% year-on-year to €115.1 million. Sales in the region grew impressively by 44% compared to two years ago. North America contributed to 50.8% of Safilo’s total revenues.

In Europe, sales rose by 4.5% year-on-year to €82.8 million. However, compared to Q3 2019, sales in the region experienced a decline of over 13%. Meanwhile, sales in the Asia Pacific region declined by 28.9% to €11.3 million, primarily due to lockdowns and the loss of licenses.

Despite the challenges faced in the Asian market and the loss of key licenses, Safilo’s overall performance in the third quarter demonstrated resilience and growth. The company’s focus on cost-saving measures, signing new licensing agreements, and capitalizing on the online sales boom has positioned it for a promising future. Safilo remains confident in its ability to navigate the complexities of the current business environment and deliver strong results in the upcoming year.

Useful Links:

Safilo Official Website
Men’s and Women’s Apparel Manufacturing Industry Report