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Aug 4, 2016
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Safilo Group net sales slow in first half of 2016

Published
Aug 4, 2016

Safilo Group S.p.A. reported its financial results for the second quarter and first half of 2016. The company stated that the focus for the first half of the year was on improving overall momentum from sales and cost saving programs.


Safilo


Second quarter total net sales were €349.5 million compared to €350.6 million in the previous year’s second quarter, gross profit declined 1.4% to €210.4 million from €213.4 million and gross margin declined 70 basis points to 60.2% from 60.9%.
 
Adjusted EBITDA increased 9.7% to €33.1 million from €30.2 million and the adjusted EBITDA of the wholesale business was €31.8 million, up 22.0% compared to €26.1 million in Q2 2015.

Group total net sales for the first half of the year decreased 3.5% to €651.1 million from €674.9 million, and wholesale revenues were €612.4 million compared to €627.9 million in 2015.
 
Gross profit declined 3.7% to €394.6 million from €409.9 million, and adjusted EBITDA declined 7.0% to €58.3 million from €62.7 million in the same period of 2015. The company’s adjusted net result increased 130.6% in the first six months and its net profit increased to €16.3 million from €8.4 million.
 
Safilo’s Europe segment performed the best for the company increasing 5.3% in net sales in the first half of 2016 and 12.0% in the second quarter of 2016. North America net sales declined 3.9% and 3.6% in the first half and second quarter, respectively; Asia first half sales and second quarter sales dropped 29.2% and 29.5%, respectively; and the Rest of the World net sales decreased 7.9% in the first half and was flat in the second quarter.
 
The sales performance of going forward brands in the first half was much better increasing 11.8% in Europe, 2.0% in North America, and 7.6% in the Rest of the World, but it also declined 14.4% in Asia.
 
Luisa Delgado, CEO, commented: “In the first six months, our going forward brands portfolio made good progress, growing by 5.3% at constant exchange rates, thanks to the broad based positive trends across the different market segments in which we are active. In the second quarter, we achieved sales acceleration, recovering a considerable part of the first quarter performance driven by the service shortfalls that had prevented us to fully leverage the sales opportunities of our order book."

He continued: "Our gross margin was in line with last year while we progressed our supply network modernization focused on in- sourcing production into our own worldwide plant network and reshoring back to Italy, and simplifying our manufacturing and logistic flows. At the operating level, we progressed with the implementation of our cost savings program to improve our overheads productivity.” 
 

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