Safilo Group S.p.A. reported its sales growth in North America, where it is building a Global Sports and Outdoor Lifestyle segment around its Smith sunglasses and helmet brand, slowed significantly in currency-neutral terms in the second quarter.
The Italian company reported North American revenue grew 23.5 percent to €137.6 million ($152 mm) in the second quarter ended June 30, an increase of just 0.8 percent in currency-neutral (c-n) terms. That compares with growth of 25.1 percent (2.9 percent c-n) in the first quarter. Sales at the 143-store Solstice retail chain, grew 17.1 percent (-5.3 percent c-n) to €27.2 million ($30 mm) despite a net increase of 13 stores from a year earlier. Wholesale revenues grew 25.2 percent (2.4 percent c-n) on top of strong – but undisclosed – growth a year earlier. Safilo's Wholesale revenues include sales of more its sunglass, prescription frames and sports goggles under more than two dozen owned and licensed brands to departments stores, fashion boutiques, sporting goods and other retailers.
Globally, Safilo earned 66 percent of its revenue in the quarter, or about $266 million, from sunglasses, up from nearly 61 percent in the second quarter of 2014. The company did not break out figures for Sports products sales, which accounted for 4.1 percent, or €12.7 million in revenue in the year ago quarter of 2014.
Safilo has been shifting key Smith design and marketing managers to Portland, OR to staff a new global design studio for Sports eyewear since last fall, when it began folding Smith into its North American subsidiary. Safilo said the move will enable it to redirect millions of dollars annually toward growing Smith brand globally and building a Global Sports and Outdoor lifestyle segment. Safilo has since consolidated its distribution center in Parsippany, NJ into its Denver distribution hub and is scouting locations for a new U.S. headquarters closer to its showroom in New York City.
In addition to Smith, Safilo owns the Carrera, Polaroid, Safilo and Oxydo brands. It earns the bulk of its sales providing sunglasses, eyewear and frames under licensed fashion brands such as Dior, Fendi and Gucci to department stores, fashion boutiques, opticians and other retailers.
