Italian eyewear specialist Safilo Group has posted net sales of €797.7 million in the first nine months of 2017, a -15% decrease at constant exchange rates.

The net sales performance of the Going Forward Brand Portfolio declined by -4% at constant exchange rates. According to Safilo, this was due to a difficult start to the year following the implementation of the new Order-to-Cash IT system in the Padua DC.

Gross profit in the first nine months fell by -27.7% to €407.6 million and adjusted EBITDA was €43.2 million, down -44.2% year-on-year.

Safilo said the group’s results reflect the exit of the Gucci licence at the end of 2016 and its replacement with the Strategic Product Partnership Agreement with Kering.

Geographical breakdown:

Europe

Net sales in Europe dropped -7.3% at constant exchange rates to €367.7 million. The Going Forward Brand Portfolio reported a -6.1% decline.

North America

Net sales in North America were down -16% year-on-year at constant exchange rates to €325.3 million. The wholesale revenues of the Going Forward Brand Portfolio decreased by -1.4%, reflecting the weakness of the department store environment, said Safilo.

Asia Pacific

Asia Pacific reported a -48.7% drop in net sales in the nine-month period. The sales performance of the Going Forward Brand Portfolio was negative by -8.7% at constant exchange rates.

Rest of the World

Rest of the World posted net sales of €59.1 million, a -10% decrease at constant exchange rates compared to the same period last year. The Going Forward Brand Portfolio posted a +6.6% rise in sales.

In the third quarter of 2017, Safilo’s total net sales equaled €245.1 million, down -14.9% at current exchange rates and -12.3% at constant exchange rates. Net sales of the Going Forward Brand Portfolio increased by +1.3% at constant exchange rates, driven by the positive growth trends experienced by the Group’s Own Core Brands and good sales momentum in emerging markets.

Every region except for Rest of the World posted a decline in net sales in the third quarter.

Q3 2017 gross profit fell by -28.9% to €120.4 million.