Eyewear group Safilo has reported preliminary net sales for 2020 of €780.3 million, down by -15.2% year-on-year at constant exchange rates and -16.9% at current exchange rates.
However, a second-half rebound saw sales climb by +4.5%. Q4 net sales reached €225.6 million, up +3% at constant exchange rates (-2.1% at current exchange rates). The recovery was driven by strong wholesale and online trading, while the acquisitions of Privé Revaux and Blenders Eyewear added €14.1 million in sales to the group’s North American business.
Q4 performance included:
- a resilient showing in the North American wholesale business, up +8.9% on an organic basis excluding the acquisitions and at constant exchange rates. Q4 total sales in North America were instead up +27% at constant exchange rates and +19.2% at current exchange rates, thanks to the contribution, seasonally more moderate than in the previous two quarters, of Privé Revaux and Blenders Eyewear;
- challenging trading conditions in Europe, where net sales declined by -18% at constant exchange rates (-16.0% for the wholesale business) and -19.4% at current exchange rates. Lockdowns and lack of tourism affected in particular channels like boutiques and travel retail, but online performed well.
- a business rebound in Asia Pacific, with the quarterly sales up +28.1% at constant exchange rates and +24.1% at current exchange rates. Safilo’s Chinese business more than tripled in Q4.
- improving sales trends in the Rest of the World, down -6.5% at constant exchange rates and -19.7% at current exchange rates. This was driven by positive performances in Brazil and Mexico and the first signs of recovery in the Middle East.
The Q3 and Q4 performances also saw earnings recover. Safilo said: “In value terms, the positive adjusted EBITDA achieved by Safilo in the second half of the year is expected to offset the significant loss suffered in the first half, allowing the group to return to break-even in the full year.”
Safilo Group’s portfolio encompasses own core brands Blenders, Carrera, Polaroid, Privé Revaux, Safilo, Seventh Street and Smith. Licensed brands include Banana Republic, BOSS, David Beckham, Elie Saab, Fendi, Fossil, Givenchy, Havaianas, HUGO, Isabel Marant, Jimmy Choo, Juicy Couture, Kate Spade New York, Levi’s, Liz Claiborne, Love Moschino, Marc Jacobs, Missoni, M Missoni, Moschino, Pierre Cardin, PORTS, rag&bone, Rebecca Minkoff, Tommy Hilfiger, Tommy Jeans and Under Armour.
