Italian eyewear group Safilo is currently facing a major challenge with the imminent loss of its license with Dior by the end of 2020. To address this issue, the company is taking proactive steps by seeking out new brand partners well before the current agreement expires. In a recent interview with Reuters, Chief Executive Angelo Trocchia highlighted the urgency of securing new partnerships to offset the potential revenue impact of losing Dior.
The decision by Dior, a part of the prestigious LVMH group, to not renew its agreement with Safilo in favor of a joint venture with Marcolin has had a significant impact on Safilo’s stock prices, with a notable 6% decrease following the announcement. Dior’s contribution to Safilo’s total revenues in 2018 was substantial, accounting for 13% of the company’s income. As a result, the loss of this partnership has put pressure on Safilo to diversify its brand portfolio and secure new licenses to maintain its market position.
Despite this setback, Trocchia remains confident in Safilo’s performance for the fiscal year, aiming for a sales growth of 2-4%. The company is set to unveil a new business plan before the end of the year, outlining its strategic objectives for the next three years starting in 2021. This roadmap will offer transparency and guidance to investors and stakeholders, demonstrating Safilo’s determination to navigate through challenges and emerge stronger.
As Safilo prepares for the transition away from the Dior license, the focus is on expanding and strengthening its partnerships. By actively seeking out new brand collaborations and reinforcing existing relationships, Safilo is positioning itself for success in the competitive luxury eyewear market. The company’s proactive approach underscores its commitment to innovation and resilience in the face of industry changes.
To learn more about Safilo and its recent developments, you can visit their official website here. Additionally, for more information on the luxury eyewear market and industry trends, check out this insightful report here.
