Safilo Q1 net sales decline 7 percent

In the first quarter of 2016, Safilo’s net sales reached 301.6 million euros (343.4 million dollars), down 7 percent at current exchange rates and 6.6 percent at constant exchange rates.

The company said, sales performance reflected on one side the negative impact of the brands that the Group stopped/will stop servicing, on the other the positive trends of the going forward brands portfolio, up 1 percent at constant exchange rates, reflecting positive performance in core markets and a mixed performance among emerging markets.

Net sales by geographical area

Sales in Europe equalled 130.1 million euros (148.1 million dollars) compared to 132.9 million euros (151.3 million dollars) in the first quarter of 2015, down 2.1 percent at current exchange rates and 1.7 percent at constant exchange rates. In the period, sales of the going forward brands increased by 3.6 percent at constant exchange rates.

Sales in North America were 127.2 million euros (144.8 million dollars), down 4.3 percent at current exchange rates and 5.6 percent at constant exchange rates. In the period, sales in the 121 Solstice stores in the United States remained weak, falling by 15.2 percent at current exchange rates and by 17 percent at constant exchange rates.

The North America wholesale business equalled 110.4 million euros, down 2.4 percent at current exchange rates and 3.6 percent at constant exchange rates. Sales performance of the going forward brands portfolio was positive by 3.1 percent at constant exchange rates. Q1 2016 sales in Asia totalled 26.7 million euros (30.4 million dollars), down 28.7 percent at current exchange rates and 28.3 percent at constant exchange rates. In the period, sales performance of the going forward brands in the region was down 14.6 percent at constant exchange rates.

Q1 sales in the Rest of the World were 17.6 million euros (20 million dollars), down 16.3 percent at current exchange rates and 6 percent at constant exchange rates. In the period, sales performance of the going forward brands in the region was positive by 2.8 percent at constant exchange rates.

Gross profits declines 6.3 percent

Q1 gross profit was 184.2 million euros (209.7 million dollars), down 6.3 percent. Gross margin increased to 61.1 percent of net sales compared to 60.6 percent in the first quarter of 2015.

Adjusted1 EBITDA margin stood at 8.4 percent of net sales compared to 10 percent in the same period of 2015, mainly reflecting the negative operating leverage stemming from the declining sales.

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