Safilo upbeat on Q3, but stays cautious given uncertainties
Eyewear giant Safilo is seeing a sales recovery with expectations of revenue at constant exchange rates being higher in the latest quarter than a year ago.
The company said that, based on the business rebound it saw in July, its performance in August and early figures for September, Q3 sales including acquisitions should grow in mid-single-digits. This also supports its forecast for a return to profit on an adjusted EBITDA basis.
The company had previously expected a moderate revenue decline and said that the revised guidance was caused by a "more contained slowdown in the wholesale business”.
This was “mainly thanks to the continued recovery recorded by the North American independent optician's market and the strong progress of Smith's online business, as well as a greater than expected contribution deriving from the group's direct-to-consumer business, in particular the recently acquired brands Blenders and Privé Revaux”.
That said, the company remains cautious and wouldn't provide guidance for the full year given the ongoing uncertainties and the chance that the pandemic might or might not cause major problems in the months ahead.
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