The end of an era is approaching for Safilo as the countdown begins for the expiration of its longstanding licensing agreement with the esteemed fashion house Dior. This unexpected development has rocked the eyewear industry, causing Safilo’s stock prices to take a significant hit on the Milan stock exchange. With the contract set to conclude on December 31, 2020, Safilo is bracing for the impact of losing one of its most lucrative partnerships.
For over two decades, Safilo and Dior have collaborated to create and distribute premium eyeglasses and sunglasses that have captured the hearts of fashion-conscious consumers worldwide. The termination of this partnership was foreshadowed by the formation of Thélios, a joint venture between Marcolin and LVMH, which signaled LVMH’s intentions to bring eyewear production in-house for its luxury brands. With the writing on the wall, Safilo now faces the reality of parting ways with one of its key revenue generators.
Despite this significant setback, Safilo remains resilient and forward-looking under the leadership of CEO Angelo Trocchia. Trocchia is confident in the company’s potential to bounce back by leveraging its talented workforce, robust license portfolio, and exclusive brand offerings. While Safilo has encountered challenges in recent years, such as declining profits and lost licenses with other luxury brands, it has shown promising signs of progress with a revenue increase in the first quarter of 2019.
In the midst of a fiercely competitive market and evolving industry dynamics, Safilo is committed to adapting and thriving in the face of adversity. The company is focused on fostering innovation, nurturing creativity, and fostering strong partnerships to drive growth and success in the ever-changing landscape of the eyewear industry. Despite the loss of the Dior license and other setbacks, Safilo is determined to emerge as a stronger and more competitive player in the market.
To learn more about Safilo and its journey in the eyewear industry, visit their official website here. For insights into the luxury eyewear market and industry trends, check out this informative article here.
