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Eyewear group Safilo’s portfolio overhaul boosts core profit margin
Published by maria gbaf
Posted on January 28, 2022
1 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by maria gbaf
Posted on January 28, 2022
1 min readLast updated: January 28, 2026
Safilo's core profit margin improved to 8.7% in 2021, driven by a brand portfolio overhaul, despite losing key licenses and facing Q4 sales decline due to COVID-19 restrictions.
(Reuters) – Italian eyewear group Safilo reported an improved core profit margin for the full-year as sales received a boost from its brand portfolio overhaul.
The maker of frames for Chanel, Prada and Versace reported a preliminary full-year earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 8.7%, compared to breakeven a year ago.
Preliminary sales in 2021 rose by 26.3% at constant currencies to 969.6 million euros ($1.1 billion) but fell 0.7% to 232.2 million euros in the fourth quarter as new restrictions followed the spread of COVID-19 variant Omicron.
Safilo had to deal with the impact of losing most of its LVMH licences, including its most lucrative one with Dior, and its Gucci license from Kering.
To reduce its exposure to sunglasses, which were less resilient than prescription frames during the pandemic as people stayed home and travelled less, it launched an optical range for its Polaroid brand and expanded its Carrera range.
($1 = 0.8977 euros)
(Reporting by Silvia Recchimuzzi in Gdansk; Editing by Edmund Blair)
The main topic is Safilo's improved profit margin due to a brand portfolio overhaul.
Safilo's sales rose by 26.3% in 2021, despite a decline in the fourth quarter.
Safilo faced challenges from losing major licenses and COVID-19 restrictions impacting sales.
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