Safilo: the first quarter of the year

Safilo closed the first quarter of the year with a significant recovery compared to the same period of 2017 and a return to normal operating conditions, recording strong growth rates in the European markets and in the emerging countries which had been meaningfully impacted last year by the difficult start-up of the new information system in the Padua distribution center. Excluding the impact from the weaker USD, sales in North America remained soft, in particular due to the still difficult business environment in department stores.
In Q1 2018 net sales equaled Euro 250.9 million, up 6.9% at current exchange rates and 15.4% at constant exchange rates, compared to Euro 234.6 million in Q1 2017. The brand portfolio, up 16.9% at constant exchange rates, excluding Gucci business, was enriched by the launch of the new licenses, Moschino, Love Moschino and rag & bone.
Gross profit reached Euro 127.5 million, up 9.1% compared to Euro 116.8 million in the first quarter of 2017. Gross margin increased to 50.8% of net sales compared to 49.8% in Q1 2017. Excluding Euro 1.7 million of non-recurring costs, adjusted EBITDA was equal to a profit of Euro 13.1 million (5.2% of net sales) compared to the loss of Euro 6.2 million (-2.7% of net sales) in Q1 2017.
Safilo’s net debt  stood at Euro 166.0 million, compared to Euro 131.6 million at the end of December 2017.