Safilo’s Q1 net sales drop 3.5% but remains strong

In Q1 2024, net sales for Italian eyewear group Safilo were €277.2 million, down 1.8% at constant exchange rates and 3.5% at current rates. This was chiefly due to a sales downturn for Jimmy Choo (whose licence wasn’t renewed at the end of December 2023, and will terminate on June 30 2024), to the North American market’s weakness, and to a temporary slowdown in some emerging markets.

Adjusted EBITDA in the period was €32 million, down 1.3% compared to last year, while the adjusted EBITDA margin improved to 11.5%, up from the 11.3% margin recorded in Q1 2023.

Sales in North America were worth €114.5 million, down 7.2% at constant exchange rates and 8.2% at current rates, while Europe grew by 5.8% at constant rates (and by 3% at current rates), reaching sales of €125.3 million. Sales in the Asia-Pacific region grew by 2.3% at constant rates, but decreased by 1.1.% at current rates. Sales were also down in the Rest of the World, by 12.7% at constant rates and by 11.3% at current rates.

“In a business environment which is still complex and uncertain, it was again a positive start to the year for our European business, supported by the brilliant growth of Carrera, which has made its debut in our main markets with a brand-new women’s collection that is receiving excellent feedback, and by David Beckham, which continued to post strong progress in the global premium segment,” said CEO Angelo Trocchia in a press release.

“In North America, sales were affected by a subdued winter season for the sports business and a wholesale market that remained weak in the contemporary eyewear segment, while the direct-to-consumer channels for both Blenders and Smith continued to grow nicely. In the first quarter, it was especially significant for us to be able to deliver margin growth both at the industrial and operating level, and to maintain a good grip on cash generation,” added Trocchia.

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