PADOVA, Italy—Safilo Group (SFLG.MI) issued its financial results for the third quarter and first nine months of fiscal 2016 and reported sales increases for its “going forward brands portfolio” and increased EBIDTA for the Group.

In the third quarter, Safilo’s total net sales reached €288.0 million, an increase of 1.1 percent at current exchange rates and 1.7 percent at constant exchange rates. In the quarter, sales of the Safilo’s “going forward brands portfolio” grew 3.0 percent at constant exchange rates, or 4.3 percent excluding retail.

For the first nine months, sales of the going forward brands portfolio increased by 4.7 percent at constant exchange rates, or 6.1 percent excluding retail. As a consequence of the negative impact of the brands that the Group stopped/will stop servicing, Safilo’s total nine-month net sales declined 2.2 percent at current exchange rates and 1.0 percent at constant exchange rates, reaching €939.1 million.

As previously reported by VMail, Safilo will discontinue selling Gucci and other brands at the end of this year, per an agreement with Kering announced in Sept. 2014, under which Safilo will manufacture products for Kering in a new arrangement.

Safilo said that its Q3 2016 total net sales in Europe equaled €107.6 million, up 5.9 percent at current exchange rates and 7.8 percent at constant exchange rates. Sales of the Group’s going forward brands portfolio climbed 9.5 percent at constant exchange rates. In the first nine months of 2016, sales of the going forward brands portfolio rose 11.4 percent at constant exchange rates, while total net sales in Europe reached €399.1 million, up 5.5 percent at current exchange rates and 6.6 percent at constant exchange rates.

In North America, Q3 2016 total net sales were €126.5 million, declining 5.0 percent at current exchange rates and 4.7 percent at constant exchange rates. In the first nine months, total net sales in North America equaled €386.3 million, down 4.3 percent at current exchange rates and 3.8 percent at constant exchange rates.

The company said Q3 2016 North American wholesale revenues were €107.4 million, down 3.2 percent at current exchange rates and 3.0 percent at constant exchange rates. In the first nine months, wholesale revenues were €328.6 million, down 1.8 percent at current exchange rates and 1.2 percent at constant exchange rates.

Wholesale revenues of the going forward brands portfolio were “substantially stable in the third quarter,” the company said (-0.6% at constant exchange rates), and they grew 3.4 percent in the first nine months. Q3 2016 retail sales in the U.S. were €19.0 million, declining 13.8 percent at current exchange rates and 13.4 percent at constant exchange rates. Like for like performance of the 116 Solstice stores at the end of September (reduced from 126 stores at the end of September 2015) was negative by 9.1 percent at constant exchange rates.

In the first nine months, retail sales equaled €57.7 million, declining 16.4 percent at current exchange rates and 16.3 percent at constant exchange rates, while the like for like performance was negative by 12.1 percent at constant exchange rates.

Q3 2016 total net sales in Asia were €31.3 million, up 4.5 percent at current exchange rates and 2.8 percent at constant exchange rates while third quarter net sales in the rest of the world were €22.6 million, up 12.3 percent at current exchange rates and 12.0 percent at constant exchange rates.

In the first nine months of 2016, Group’s EBITDA was affected by non-recurring, restructuring costs of €6.4 million, related mostly to the Group’s overhead cost saving initiatives announced in March. Excluding these items, Q3 2016 adjusted EBITDA equaled €19.1 million, up 30.0 percent compared to the adjusted EBITDA of €14.7 million recorded in the third quarter of 2015. The adjusted EBITDA margin increased to 6.6 percent of net sales compared to 5.2 percent in the same period of 2015.

The quarterly result took the first nine months adjusted EBITDA to €77.4 million, in line with the result recorded in the same period of 2015. Also the adjusted EBITDA margin returned in line with last year, at 8.2 percent of net sales compared to 8.1 percent the prior year.