Safilo's H1 sales decline but profit improves

First half net sales at Safilo Group of 532 million euros, declined 2.4 percent at constant exchange and 3.3 percent at current exchange rates reflecting a sales reduction resulting from the exit of Jimmy Choo, which offset a slight growth by the rest of the portfolio.

The company further said that adjusted operating result amounted to 37.6 million euros, up 7.2 percent, while adjusted operating margin improved by 70 basis points, to 7.1 percent of sales. Safilo’s adjusted net result rose to 24.2 million euros in the first half period.

Commenting on the trading update, Angelo Trocchia, Safilo chief executive officer, said: “This first semester ended by confirming the main market dynamics and trends by brand recorded in the first quarter. In the second quarter, total sales performance was more negatively impacted by the Jimmy Choo exit, while benefiting from the strong momentum of Carrera and David Beckham, which continued to win consumers’ appreciation and new space in stores.”

Highlights of Safilo’s Q2 and H1 financial results

In the second quarter, Safilo Group's net sales amounted to 254.8 million euros, down 3.1 percent both at constant and current exchange rates.

The company said in a release that the quarterly performance reflected the reduction in sales of Jimmy Choo, while the business benefited from the double digit growth at Carrera, David Beckham, Carolina Herrera and Marc Jacobs.

The quarter was also challenging for Smith, due to a still subdued business environment in stores, and for Polaroid, which was affected by the poor weather conditions in Europe.

By channel, the first half was supported by the strong performance of the independent European opticians, the You&Safilo business-to-business platform, the online business, both DTC and through internet pure players in Europe. The company added that the sport shops and the travel retail channel instead represented the main hurdles to growth during the period.

Safilo’s Q2 sales decline across core markets

In the second quarter, sales in North America amounted to 103.2 million euros, down 4.4 percent at constant exchange and 3.4 percent at current exchange rates. Sales in Europe amounted to 113.8 million euros, up 0.8 percent at constant exchange rates and negative 0.3 percent at current exchange rates.

Second quarter sales in Asia Pacific amounted to 14.5 million euros, down 11.3 percent at constant exchange and 12.1 percent at current exchange rates. Quarterly sales in the rest of the world reached 23.3 million euros, down 9.6 percent at constant exchange and 8.9 percent at current exchange rates.

In the first six months, sales in North America totalled 217.6 million euros, down 5.9 percent at constant exchange and 6 percent at current exchange rates. In H1 2024, sales in Europe totalled 239.1 million euros, up 3.4 percent at constant exchange and 1.4 percent at current exchange rates. Sales in Asia Pacific totalled 26.4 million euros, down 5.6 percent at constant exchange and 7.5 percent. Sales in the rest of the world were 48.8 million euros, down 11.3 percent at constant exchange and 10.2 percent at current exchange rates.

Second quarter adjusted EBITDA amounted to 25.6 million euros, up 2.9 percent, while the adjusted EBITDA margin improved by 60 basis points, to 10.1 percent. First half adjusted EBITDA amounted to 57.6 million euros, up 0.5 percent, while adjusted EBITDA margin improved by 40 basis points, to 10.8 percent of sales.