The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The Italian eyewear maker reported first-quarter sales up 14 percent year-over-year to 251.4 million euros ($306 million), a sign of recovery after a difficult 2020. Its share of online sales more than doubled, representing 13 percent of revenue, boosted by the acquisition of US e-commerce company Blenders Eyewear in 2019.
“2021 represents a fresh start for our Group, after two years of significant business turnarounds to establish a stronger and more resilient business model, with a diversified brand portfolio and a supply chain right-sized to market reality,” said chief executive officer Safilo Angelo Trocchia in a statement.
Safilo’s acquisition of Blenders and eyewear label Privé Revaux, as well as new license deals with Levi’s, David Beckham and other brands, helped grow the business as it exits lucrative contracts with LVMH labels Dior and Fendi. Safilo owns brands including Smith and Carrera and has licenses to produce eyewear for fashion labels including Hugo Boss, Tommy Hilfiger and Jimmy Choo. On Tuesday it it announced its latest licensing deal with Dsquared2, due to start in January 2022.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.