Safilo's Q1 net sales improve 1.6 percent

Safilo’s net sales in the first quarter amounted to 287.2 million euros, up 1.6 percent at current exchange rates and slightly down, by 0.4 percent, at constant exchange rates.

Organic sales, the company said in a release, grew by 3.2 percent at constant exchange rates, on the one hand benefiting from the good performance of the home brands and the core licences, with Carrera, Polaroid, Carolina Herrera and David Beckham up double digits, and Hugo Boss and Tommy Hilfiger in good progress, on the other, registering a still soft order taking in the United States on the products positioned in the entry and mid-tier price points.

The organic sales performance by geographical area was particularly strong in the European markets and in the main countries of Latin America and the Middle East, driven by both product categories, sunglasses and prescription frames.

Commenting on the financial results, Angelo Trocchia, Safilo chief executive officer, said: “The first quarter of 2023 broadly met our expectations for the beginning of the year, reflecting the continuation of some of the main business drivers that had characterised the second half of last year. On the profit side, we are pleased with the continuation of our journey towards a better gross margin, which in the period grew to 58.4 percent of sales, up by 340 basis points compared to the first quarter of 2022, but we are also pleased to confirm an adjusted EBITDA margin in line with last year, at 11.3 percent of revenues.”

In North America, the company’s sales amounted to 124.7 million euros, down 3.4 percent at current exchange rates and 7.2 percent, while organic sales were stable, down 0.9 percent at constant exchange rates. In Europe, sales reached 121.6 million euros, up 3.8 percent at current exchange rates and 4 percent at constant exchange rates, while organic sales grew by 5.5 percent at constant exchange rates.

In the rest of the world, net sales amounted to 28.8 million euros, up 20.3 percent at current exchange rates and 16.6 percent at constant exchange rates. In Asia and Pacific, net sales equalled 12 million euros, down 3 percent at current exchange rates and 2.6 percent at constant exchange rates.

Gross profit amounted to 167.8 million euros, up 7.9 percent, while gross margin increased to 58.4 percent of sales from 55 percent last year, up 340 basis points. Adjusted EBITDA in the quarter under review equalled 32.4 million euros.