Safilo, a prominent eyewear manufacturer, has demonstrated signs of recovery in the third quarter of the year. This resurgence in growth can be attributed to the revitalization of key markets such as North America and the continuous expansion of its online business. The company, well-known for its production of eyewear under esteemed labels like Dior, Fendi, and Jimmy Choo, reported a notable 6% increase in net sales to €219.1 million at constant exchange rates for the quarter. However, for the first nine months of the financial year, sales experienced a decline of 21.1% at constant exchange rates, amounting to €554.7 million. Nonetheless, Safilo highlighted the substantial progress made in its online business, which now constitutes 16% of total sales due to the addition of new brands like Blenders Eyewear and Privé Revaux in its portfolio.
In the third quarter, Safilo observed a 9.3% surge in adjusted EBITDA to €14.3 million, with a margin on sales of 6.5%. Angelo Trocchi, the company’s CEO, expressed satisfaction with the positive performance in the third quarter following the severe impact of the Covid-19 outbreak earlier in the year. Trocchi credited the rebound in North America as a key driver of recovery, alongside solid growth in China and improved results in vital European markets. Despite these encouraging trends, challenges persist in regions such as IMEA countries, Latin America, and the travel retail channel.
North America witnessed a remarkable 12.1% increase in organic revenues in the third quarter, marked by a robust sales recovery in independent optical stores. The success of core licensed brands like Kate Spade and Tommy Hilfiger significantly contributed to this growth. In Europe, sales experienced a decrease of 16.4% at constant exchange rates, reflecting varied trends across different countries. The Asia Pacific region reported a smaller decline in net sales of 6.4% at constant exchange rates, primarily driven by substantial growth in Mainland China.
Safilo has also unveiled updates on its digital transformation strategy, including the introduction of a new B2B platform in Europe and a Customer Relationship Management system in November. These initiatives are part of a broader project intended to enhance relationships with European opticians and augment the share of B2B business.
Despite these advancements, Safilo acknowledges the persistent challenges posed by the Covid-19 pandemic and the uncertain business environment. As the company approaches the holiday season, it remains vigilant in monitoring the impact of a new wave of infections in countries globally. Overall, Safilo maintains a cautious yet optimistic outlook on its future prospects amidst the prevailing global situation.
For more information about Safilo, visit their official website here.
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