Safilo Group’s Preliminary Sales Rise in 2019

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PADUA, Italy—In preliminary financial results for the year ended Dec. 31, 2019, Safilo Group S.p.A. (Reuters SFLG.MI) reported net sales of €939.0 million for continuing operations, up 3.1 percent at current exchange rates and 0.9 percent at constant exchange rates compared to €910.7 million in 2018. The frame maker said its wholesale business increased by 5.2 percent at current exchange rates and by 2.8 percent at constant exchange rates, confirming the expectation outlined by the Group on Dec. 10, 2019.

Safilo reported that in 2019, wholesale revenues rose 3.2 percent in Europe at constant currency levels, while it remained slightly down, by 0.6 percent in North America despite the business recovery achieved in the fourth quarter. The year marked significant business progress in Asia, up 19.2 percent at constant exchange rates, while sales in the rest of the world recorded an improvement of 1.1 percent, according to the Group.

Wholesale performance in 2019 was driven by the good results achieved by the Group’s own core brands Carrera, Polaroid and Smith, overall growing by 5.7 percent at constant exchange rates, and by the positive performance of the main licensed brands. In the fourth quarter of 2019, the quarterly wholesale performance was up 1.8 percent at current exchange rates and up 0.1 percent at constant exchange rates.

This reflected the recovery of the North American business, up 4.2 percent, and the ongoing strength of Asia-Pacific, up 8.9 percent, which was balanced by a slowdown of 4.0 percent in Europe. Preliminary total net sales of the continuing operations in the quarter equaled €230.4 million, down 2.8 percent at current exchange rates and 4.3 percent at constant exchange rates, Safilo said. This was mainly due to the expected decline in Europe of the business related to a supply agreement with Kering, which Safilo announced in October 2019, and which has been renewed until the end of 2023.

The full year annual results will be approved by Safilo’s board of directors on March 11, 2020.