Safilo Group S.p.A. sales continued to fall in North America in the first quarter, lead by a big decline at Solstice, a U.S. retail chain that sells sunglasses from Smith, Carrera, Polaroid and dozens of licensed fashion brands.
Sales in North America declined 4.3 percent to €127.2 million, or 5.6 percent in currency-neutral terms compared with the first quarter of 2015, due in part to the company’s decision to discontinue certain licensed brands of eyewear. The decline came mostly at the Solstice, where sales fell 15.2 percent (down 17 percent c-n).
While Solstice operated 11 fewer stores, or 121, during the quarter than a year earlier, executives emphasized that the chain’s overall sales remained weak.
At Safilo’s North America wholesale business, which sells prescription eyewear and sunglasses to opticians and retailers, sales declined
2.4 percent (down 3.6 percent c-n) to €110.4 million. Sales of the going-forward brands grew 3.1 percent in currency-neutral terms.
Safilo is working toward doubling sales of Smith and its other four owned brands by 2020 in a bid to increase their share of revenue to 40 percent from 25 percent in 2014. As part of that plan, Safilo absorbed Idaho-based Smith Optics into its global operations last year and moved its marketing and design team to Portland, OR to establish a design center that will drive its global sports eyewear market.
