Safilo Group S.P.A., the parent of Smith Optics, reported total net sales equaled €313.9 million in the fourth quarter, down 1.7 percent at current exchange rates and also at constant exchange rates.
Sales of the group’s Going Forward Brand Portfolio recorded a positive performance (+0.5 percent at constant currency and +2.3 percent excl. Retail). This reflected overall positive sales growth recorded in Europe and the North American wholesale business, as well as progress in the Rest of the World, namely IMEA and Latin America, while the business performance remained subdued in Asia and in the US retail business.
In Q4 2016, the performance was mainly driven by the phasing out of the Gucci license and the complete sale of its related finished products stock. At the same time, in the last quarter of 2016, Safilo shipped the first significant volumes under the strategic product partnership agreement signed with Kering. Unfortunately, all these Gucci related effects, along with higher obsolescence charges more than offset the positive underlying progress by the going-forward portfolio behind price/ mix and cost savings.
Q4 2016 gross profit totaled €151.7 million, down 15.5 percent compared to €179.5 million in the same quarter of 2015. In the fourth quarter of the year, gross margin decreased to 48.3 percent of net sales from 56.2 percent in Q4 2015. Q4 2016 adjusted
EBITDA equaled €11.4 million, down 54.4 percent compared to the adjusted EBITDA of €25 million recorded in the same period of 2015. The adjusted EBITDA margin declined to 3.6 percent of net sales in Q4 2016, from 7.8 percent in Q4 2015.
Eyewear brands under Safilo Group’s portfolio include Carrera, Polaroid, Smith, Safilo, Oxydo, Dior, Dior Homme, Fendi, Banana Republic, Bobbi Brown, BOSS, BOSS Orange, Céline, Elie Saab, Fossil, Givenchy, havaianas, Jack Spade, Jimmy Choo, Juicy Couture, kate spade new york, Liz Claiborne, Marc Jacobs, Max Mara, Max&Co., Pierre Cardin, Saks Fifth Avenue, Swatch and Tommy Hilfiger.
Photo courtesy Safilo Group