Safilo first-half sales decline

Safilo reported net sales of euro 651.1 million (AU$945 million) for the six months ended 30 June 2016, registering a decline of 2.1% at constant exchange rates.The adjusted EBITDA of euro 58.3 million (AU$84.6 m) also represented a 7% decrease compared with the same period in 2015.However, total net sales for the Safilo’s ‘going forward’ brands portfolio increased 5.3% at constant exchange rates for the first half, and it was said that the portfolio’s second quarter lift in sales had more than [offset] the negative impact of the brands that the company stopped/will stop servicing .Asia’s first half net sales of euro 58.8 million (AU$85.3 m) contracted 27.8% at constant exchange rates, and sales for the going forward brands in the region also dropped 14.4%. While it was said that business had rained difficult in Asia, Australia was noted as having performed positively over the period.First half net sales in North America declined 3.4% at constant exchange rates to euro 259.8 million (AU$377 m), while sales in Europe increased 6.1% to euro 291.4 million (AU$422.9 m). Across all other markets, Safilo’s net sales fell 2% at constant exchange rates to euro 41 million (AU$59.5 m).Safilo chief executive officer Ms Luisa Delgado commented, In the first six months, our going forward brands portfolio made good progress, growing by 5.3% at constant exchange rates, thanks to the broad-based positive trends across the different market segments in which we are active. In the second quarter, we achieved sales acceleration, recovering a considerable part of the first quarter performance driven by the service shortfalls that had prevented us to fully leverage the sales opportunities of our order book. We continued to sharpen our focus on our own core brands, by concluding the integration of Polaroid, qualifying our stylistic direction for Carrera, while Smith built market share, despite a difficult sports market environment in North America.