Lifted by U.S. gross sales, on-line enterprise and cost-cutting measures, Italian eyewear-maker Safilo Group SpA reported an improved efficiency on Tuesday. In the three months ended March 31, Safilo’s adjusted earnings earlier than curiosity, taxes, depreciation and amortization rocketed 342.8 p.c to 25.8 million euros, in comparison with 5.8 million euros in the identical interval a yr earlier. This was a 29.4 p.c enchancment on its pre-pandemic first-quarter 2019 adjusted EBITDA of 20 million euros.
The group’s CEO Angelo Trocchia stated on account of robust gross sales tendencies in April, he’s optimistic second-quarter outcomes will even present an improved efficiency over 2019 pre-COVID 19 ranges.
“Based on the current visibility on the order book, the Group expects its total next sales for the second quarter of 2021 to normalize compared to the exceptional COVID-19-related decline recorded in the second quarter of last year, aiming slightly to surpass Q2 2019 and constant exchange rates,” Trocchia stated throughout the firm convention name. Safilo is poised to offset the detrimental results of the exit of the profitable Dior model, in addition to the Fendi label, which is predicted in June of 2021.
In the primary quarter, web gross sales had been up 13.7 p.c to 251.4 million euros, according to the “double digit” progress steering given by the corporate in March. At fixed trade web gross sales rose 20 greater than the primary quarter of 2020 and 6 p.c above the identical interval in 2019.
Gross revenue surged 15.7 p.c to 126.6 million euros in comparison with 109.4 million euros within the first quarter of 2020, whereas web debt stood at 181.3 million euros earlier than the accounting code IFRS 16, in comparison with the 179 million euros reported in March.
In addition to its personal manufacturers Carrera, Polaroid, Smith and Safilo, Seventh Street Blenders and Privé Revaux, the group produces and distributes eyewear for labels resembling DB Eyewear by David Beckham, Missoni, Marc Jacobs, Moschino, Tommy Hilfiger, Levi’s and Parisian-chic label Isabel Marant.
On Tuesday, Safilo introduced a five-year world licensing settlement for the design, manufacturing and distribution of Dsquared2 eyewear (beforehand held by competitor the Marcolin Group), representing a possibility to develop within the trend luxurious section. The first optical and sun shades assortment for each women and men can be launched in January 2022.
An uptick in gross sales of accessible manufacturers Privé Revaux and Blenders boosted Safilo’s North America gross sales, rising 41.1 p.c to 119.1 million euros and representing 47.4 p.c of the whole.
Revenues in Europe stumbled 5.8 p.c to 101.5 million euros accounting for 40.4 p.c of the whole, as Italy and different South European markets had been closely hit by the COVID-19 outbreak, retail restrictions and strict authorities imposed lockdowns.
The Asia Pacific area additionally slipped 13 p.c to 13 million euros, representing 5.2 p.c of the whole, largely on account of a decline in journey retail. A surge in some Middle Eastern international locations helped the Rest of the World class rise by 26.6 p.c to 17.8 million euros.
Safilo has been targeted on its digital transformation and its direct-to-consumer and business-to-business methods. In August, Safilo launched its new b-to-b platform in Europe and, in November of final yr, it rolled out a brand new Customer Relationship Management system. As a results of its efforts, the group’s whole on-line gross sales surged 164 p.c in comparison with the identical interval a yr earlier, due to Blenders’ e-commerce gross sales and the expansion of Smith’s direct-to-consumer channel. Safilo’s whole on-line enterprise at present represents 13 p.c of web gross sales, in comparison with solely 5.9 p.c within the first quarter of 2020.
As a results of its cost-cutting technique, Safilo just lately introduced plans to shut two key factories, in response to a discount in quantity because of the termination of the licensing agreements for main manufacturers. In 2020 Safilo started the closure of its plant in Martignacco, Italy, and in March, the corporate introduced the closure of its Ormož, Slovenia, manufacturing web site, affecting the roles of 557 staff. During the convention name, Trocchia famous that the corporate reached an settlement with Ormož’ labor unions.
Looking forward, the corporate is predicted to proceed investing in its digital channels and advertising and marketing technique, because it stays a prudent stance for the present yr. Trocchia stated Safilo is awaiting additional market proof of a strong solar season and whether or not or not journey will kick off once more inside Europe.
“Australia and China are performing well, but [South] Korea is bad. Other countries in the [Asia] region are very bad… We see a strong rebound in the U.K. and saw positive signals from Italy over the last week, but haven’t noticed any change in trends in Germany, France and Spain. We need to get used to this patchy situation.”