Safilo’s profitability rose in 2013

The loss of a valuable license to make eyewear for Armani to market leader Luxottica at the end of 2012 had prompted Safilo to trim its sales and profitability expectationsSafilo, which generates around 80% of revenue from eyewear made under licence, said it would develop the brands it owns, such as Carrera and Polaroid, and selectively agree new licences.”Our focus is on leveraging and expanding our proprietary brands to their fullest potential,” Ms Luisa Delgado, who was appointed chief executive officer of the company last October, said.New licenses must “complent our portfolio … we are not looking indiscriminately at just adding brands,” Ms Delgado said.Chief financial officer Mr Vincenzo Giannelli said a new licence to manufacture sunglasses for Kering’s Fendi should generate euro 40-50 million ($US54.96 million-$68.7 million) in 2014 and 2015.Luxottica expects the Armani licence to be worth euro 160 million in sales in 2014.Analysts say changes in consumer behavior worldwide, including growing popularity of sunglasses in China, have made eyewear a lucrative market.