Safilo Group’s licence agreement for Dior and Dior Homme sunglasses and optical frames will end on the expiry date of 31 December 2020, with no renewal planned.
Safilo has been creating, producing, and selling Christian Dior eyewear for over 20 years and has sold more than 30 million pieces of Dior eyewear over that period.
The group has also closed the transaction to sell its USA retail chain Solstice to Fairway, in a deal which was announced earlier this year. Fairway was formed by a group of investors active in the USA and in the European eyewear retail business.
“The sale of the Solstice retail business confirms the group’s efforts to focus on its core wholesale business, and thereby marks a further key step in Safilo’s strategy of recovering a sustainable economic profile,” Safilo stated.
In the 2018 fiscal year, the Dior license accounted for approximately 13% of Safilo total sales, the company said.
Safilo Group Chief Executive Officer Angelo Trocchia said: “During two decades of the Dior eyewear license, Safilo has created collections that have made history in the eyewear sector.”
“Our company has 85 years of expertise, with a commitment to and passion for the industry which we are proud of. To build an even stronger Safilo for the future we are ready to continue leveraging on our human capital and the solid foundations of our attractive and balanced license portfolio, as well as our proprietary brands which are growing in line with our plan,” he continued.
Trocchia said the company would focus on creativity, technology skills, and people to further expand its brand portfolio. Safilo’s line-up includes key brands Kate Spade New York, Tommy Hilfiger, Havaianas, and Fossil and recently-signed licensing agreements with Levi’s, Missoni, and David Beckham.
As reported, Safilo is focused on a turnaround plan having revealed 2018 net sales of €962.9 million, a 4% slide, earlier this year.
“We remain fully committed to our 2020 Group Business Plan, aiming to reignite sales growth focusing on key geographies, brands and channels while recovering operating performance enabled by our cost reduction programme,” Trocchia said.
“We are on track with our goals and will further accelerate our journey towards restoring an adequate and sustainable level of profitability by 2020 which will enable us to effectively manage this license exit,” he concluded.
Safilo said it will present a new Group Business Plan by the end of 2019.
(Source: Moodie Davitt Report)