Italy's Safilo narrowly beats FY sales guidance with Europe as key driver

Illustration shows Safilo logo
Safilo logo is seen in this illustration taken, May 1, 2022. REUTERS/Dado Ruvic/Illustration

MILAN, Jan 26 (Reuters) - Italian eyewear group Safilo (SFLG.MI) on Thursday narrowly beat its full-year 2022 revenue guidance, posting a 4.2% rise at constant exchange rates thanks to the positive performance of its own brands as well as of its licensed business.

The maker of frames for Hugo Boss and Tommy Hilfiger said in a statement that preliminary net revenue came in at 1.08 billion euros ($1.17 billion) last year compared with 969.6 million euros in 2021, slightly ahead of a 1 billion euro target disclosed by the company in August.

"Europe remained in 2022 the key growth drive," said Safilo, noting the main markets in the region and surging business in Turkey and Poland contributed to a 12% hike at constant exchange rates compared with 2021.

Among the spectacles maker's own brands, Smith reported another strong increase in sales, it said, while Carrera sales far exceeded pre-pandemic levels.

Safilo said that its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by around 24% to 101 million euros, yet margins stood at 9.4%, slightly below management's expectations of around 10%.

($1 = 0.9206 euros)

Reporting by Federico Maccioni, editing by Alvise Armellini Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.