Safilo’s Q1 net sales drop 3.5% but Europe is strong

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Safilo’s Q1 net sales : With a decline of 1.8% at constant exchange rates and 3.5% at current prices, Italian eyeglasses manufacturer Safilo recorded net sales of €277.2 million in the first quarter of 2024. Jimmy Choo’s license was not renewed at the end of 2023 and will expire on June 30, 2024, which contributed to a drop in sales and one of the main reasons for the overall reduction. Another factor that contributed to the sales slump was the North American market’s problems as well as a temporary slowdown in specific emerging economies.

Even though net sales were down, Safilo nevertheless managed an adjusted EBITDA of €32 million, which was down 1.3% from the prior year. On the other hand, the adjusted EBITDA margin increased from 11.3% in Q1 2023 to 11.5% in Q2 2023.

At constant exchange rates, sales in North America fell 7.2%, while at current rates, they fell 8.2%, totaling €114.5 million. This was the worst regional result. In contrast, sales in Europe reached €125.3 million, reflecting a growth rate of 5.8% at constant values and 3% at current rates. Even though it shrank by 1.1% at present rates, the Asia-Pacific area grew by 2.3% when adjusted for inflation. There was a 12.7% fall in sales at constant rates and an 11.3% drop at current rates in the Rest of the World.

Despite the difficulties presented by the complicated and unpredictable economic climate, CEO Angelo Trocchia highlighted the good start to the year for the European firm. Carrera has been expanding rapidly, he said, and the launch of a new women’s collection has been a huge success. Trocchia further noted David Beckham’s ongoing success in the worldwide premium market.

A sluggish wholesale market for modern eyewear and a lackluster winter season for the sports business both had an influence on sales in North America. Nevertheless, Blenders and Smith both demonstrated encouraging development through direct-to-consumer methods. According to Trocchia, the first quarter is crucial for achieving industrial and operational margin increase and good cash generation.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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