PADUA, Italy—The board of directors of Safilo Group S.p.A. (SFLG.MI) has approved the company’s consolidated financial results for the fourth quarter and the year ended Dec. 31, 2014.
 
In the fourth quarter of 2014, the group’s total revenue stood at €311.2 million, up 11.2 percent compared to €279.7 million recorded in the same quarter of 2013. Group net profit for the fourth quarter of 2014 equaled €10.6 million, down 9.1 percent compared to €11.7 million in the same period of 2013.
 
Full year 2014 revenues reached €1,178.7 million, delivering a 5.1 percent growth compared to €1,121.5 million total sales recorded in 2013. Safilo closed 2014 with a group net profit of €44.5 million, marking a growth of 14.1 percent compared to the €39.0 million recorded in 2013.
 
“2014 has been an important year for Safilo, as we invested significantly in the company’s leadership and operational strategies, toward long term sustainable growth,” said Luisa Delgado, CEO of Safilo Group. “We started to register the first tangible results, namely in topline growth acceleration in Germany, North Europe, U.K., and Latin America through new strategic commercial focus and capabilities.

“We invested in building new marketing capabilities, to leverage our proprietary brands’ potential, with Polaroid and Smith recording excellent sales growth performance while we prepared the re-stage of Carrera. Our licensed brand portfolio registered strong broad-based growth. We enhanced our product capabilities, strengthening design through an emerging global network of design studios, a new product creation organization for product development, research & innovation, and a new global product supply organization to lead the simplification and modernization of our supply network, with a renewed organization and IT enabled work standardization starting to build targeted competitive advantage,” she said.
 
From a markets perspective, North America and Latin America were the key growth drivers in the year, with the latter up more than 40 percent in the last quarter and more than 20 percent in the year. These markets benefited from a dedicated multifunctional regional headquarter organization located in Miami to serve all customers and market distributors in Latin America, with locally tailor-made commercial partnerships across the different consumer segments in which Safilo is present with its portfolio, the company said.
 
Revenue for the fourth quarter of 2014 in the American market grew by 23.2 percent, to €133.6 million compared to €108.4 million in the same quarter of 2013. Full year 2014, sales rose 8.0 percent, reaching €494.7 million compared to €457.9 million in 2013.
 
According to the company, in 2014, Safilo developed a new portfolio strategy based on the five identified consumer segments which compose the relevant eyewear market, together with clear portfolio roles for each of its brands to address these segments. Sales performance by brand evidenced some important progress versus portfolio roles. Dior sales were very solid throughout the year, representing a continued benchmark for Safilo's most sophisticated product, selectivity and communication projects.

In 2014, Dior iconic collections continued to outperform across all the most prestigious and high quality eyewear channels. Strong sales trends for Boss and Tommy Hilfiger confirmed their potential to become Safilo’s future core brands, the company said. An opportunity the group has started to work on also is Max Mara licenses, whose sales grew double digit in 2014, proving the rationale of Safilo’s renewed focus on the brand. Céline and Jimmy Choo sales grew significantly; while Fendi in its launch year was off to a good start, along with Bobbi Brown. Finally, Gucci sales were broadly flat versus year ago.
 
In the growing “Mass Cool” segment, Polaroid confirmed its strong growth trajectory, with 2014 net sales up more than 20 percent for the second year in a row, gaining market share in core markets like Spain, Germany and Russia, and initiating its worldwide expansion into Latin America, North America and Asia. In the Sports-Outdoor segment, Safilo's proprietary brand Smith continued in the fourth quarter the double digit sales growth trends recorded in the first nine months.

In 2014, Safilo initiated a strategic renewal and related restructuring of the brand’s business and operational platform, to fully leverage its strengths and prepare it for success in its international expansion. Sales for Carrera declined in the year in sun, while frames were essentially flat worldwide, with the group focused on preparing the brand’s consumer-centered restage and growth strategy for the next five years, while maintaining lean distribution channels, ready for the brand's re-stage in 2015.
 
At the end of December 2014, group net debt stood at €163.3 million, down 10.5 percent compared to €182.5 million at the end of December 2013 and more or less in line with the position reported at the end of September 2014 of €158.9 million, the company said.