MILAN — Safilo Group on Tuesday launched preliminary 2024 key efficiency indicators, which confirmed stronger margins and improved money technology regardless of the difficult market.
Within the 12 months ended Dec. 31, revenues amounted to 993.2 million euros, down 3.1 p.c in contrast with 1.02 billion euros in 2023. The lower was attributed to the top of the license with Jimmy Choo, which went on to ink a 10-year settlement with EssilorLuxottica. Web of this, gross sales had been barely optimistic, pushed by the solidity of the European market, whereas enterprise in North America was impacted by a lackluster efficiency in sun shades and sports activities.
Within the yr, gross margin improved to 59.7 p.c of gross sales, up 100 foundation factors. Adjusted earnings earlier than curiosity, taxes, depreciation and amortization improved by 40 foundation factors to 9.4 p.c of revenues.
The development in margins was attributed to larger industrial effectivity achieved with the reorganization accomplished in 2023, and the optimistic value/combine impact on gross sales recorded all year long.
The fourth quarter confirmed an acceleration, as gross sales had been down 1.6 p.c however, web of Jimmy Choo, they rose nearly 2 p.c.
Carrera Eyewear ladies’s sun shades.
Courtesy of Carrera Eyewear
At fixed trade charges, revenues in Europe within the fourth quarter had been secure in comparison with the identical interval in 2023, whereas North America registered a 4.6 p.c lower. This was impacted by the decrease gross sales of Blenders, which, in the identical interval of 2023, had been boosted by the success of the model’s first assortment in collaboration with Coach Prime. The efficiency in North America additionally mirrored the still-subdued efficiency of sun shades within the wholesale channel, which did present indicators of enchancment within the final weeks of the yr.
Smith however continued to progress within the direct-to-consumer channel and noticed a restoration in bodily shops, supported by a robust begin to the 2025 ski season.
Within the yr, and at fixed trade charges, Europe grew 1.6 p.c, whereas the North American market recorded a decline of 5.2 p.c. Revenues in Asia-Pacific and the Remainder of the World decreased by 2.1 and 5.9 p.c, respectively.
In 2024, Safilo acquired the perpetual license for Eyewear by David Beckham, changing a earlier contract that was as a result of expire on the finish of 2030 and marking yet one more method to the manufacturing and distribution of branded eyewear. David Beckham and Carrera had been the principle strengths within the yr, rising at a double-digit clip additionally within the final quarter. Eyewear by Tommy Hilfiger, Marc Jacobs, and Carolina Herrera additionally delivered strong progress.
The free money circulate was optimistic and amounted to 16.7 million euros, together with the funding to accumulate the perpetual license for Eyewear by David Beckham — a determine that was not disclosed.
Web debt, which additionally takes into consideration the completion of the share buyback program for 11.8 million euros, remained secure at 82.7 million euros.
In a press release issued after the top of buying and selling in Milan, the place Safilo is publicly listed, the corporate stated that taking a look at 2025, it “stays centered on strengthening and rising its model portfolio, aiming for an more and more focused use of assets and investments.”
Different manufacturers produced beneath license vary from Dsquared2, Etro, and Isabel Marant, to Missoni, Moschino, and Stuart Weitzman, to call a couple of. Along with Carrera and Smith, Safilo owns the Polaroid, Blenders, Privé Revaux and Seventh Avenue manufacturers. On Tuesday Polaroid signed a world partnership with the ATP tennis tour.
“The financial and monetary enchancment achieved in 2024 represents a strong foundation to allow Safilo to handle the alternatives of the brand new yr,” concluded the assertion.