Safilo Q1 sales increase 1.9 percent

REPORT_ The Board of Directors of Safilo Group reviewed and approved the results of the first quarter

of 2014. In the first three months of the year, Safilo posted an increase in sales at constant exchange rates of 1.9 percent, and a more significant improvement in margins and profits, with the growth of the group net result almost touching 23 percent over the period.

Commenting on the results, Luisa Delgado, Safilo Group’s Chief Executive Officer, said, “In this first quarter of 2014, results were broadly coherent with the medium and long term strategy that we have chosen to implement for our business, and that guides our operational choices. We aim to grow our business in a sustainable and profitable way. In the quarter, we gradually introduced Fendi in key worldwide markets and launched the first Bobbi Brown eyewear collection in the United States and Canada. Based on the initial positive market receptions, these two new businesses promise a satisfactory first year with sustainable quality growth potential.”

In the first quarter of 2014, the group total turnover amounted to 293.2 million euros (404.8 million dollars), compared to 297 million euros (410 million dollars) in the same period of 2013, with a negative impact of the exchange rates on the overall performance of 3.2 percent.

The 132 Solstice stores in the United States reported sales decrease of 1.6 percent at constant exchange rates also due to the bad weather conditions that affected North America earlier this year. In the European market, the Padua-based group's quarterly sales registered a growth at constant rates of 3.1 percent. Germany and the UK were the main driver of growth in Europe, while business in the Italian market and in countries such as Spain and Portugal continued to recover.

In the period, Safilo established a new business unit dedicated to the development of the Latin American markets, which, in the first three months of the year, delivered the best performances, highlighting the as of yet untapped potential for Safilo in this area of the world. In Asia, sales increased by 1.9 percent at constant exchange rates thanks to the positive performance of China and Korea, especially in the sunglasses segment. EBITDA recorded an increase of 2.3 percent. EBITDA margin improved to 12.1 percent of sales from 11.7 percent in the same period of 2013.