Safilo still affected by Gucci licence termination, down 14.9% in third quarter

The Gucci licence termination still weighs heavily on the financial results of Italian eyewear manufacturer Safilo. The group closed the third quarter 2017 with a revenue of €245.1 million, down 14.9% at current exchange rates (-12.3% at constant exchange rates. Sales in comparable brand portfolio terms instead rose slightly in the quarter, by 1.3%.

In the third quarter, gross profit was €120.4 million (-28.9%), gross industrial margin fell to 49.1% of net sales (compared to 58.8% in Q3 2016) and adjusted EBITDA was €15.4 million, down 19.6% from Q3 2016.

Revenue for the Europe region was €100.5 million in the quarter (-5.9% at constant exchange rates). North America slumped too, generating a revenue of €103.5 million, down 13.7% at constant exchange rates. Sales for the Asia-Pacific region plummeted, reaching €16.7 million, down 43.7% at constant exchange rates. The rest of the world gained 8%, reaching €24.4 million, driven by a comparable brand portfolio sales rise of 28.2%, especially thanks to Safilo's own brands.

Safilo is currently distributed in about 100,000 retail outlets worldwide with a global network of over 50 distribution partners. The group closed 2016 with a net revenue of €1.253 billion.

Safilo still affected by Gucci licence termination, down 14.9% in third quarter

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