By Christopher Emsden
ROME--Italian eyewear maker Safilo Group SpA (SFL.MI) whose
brands include Gucci and Hugo Boss posted an increase in
first-quarter earnings despite losing its coveted license to make
sunglasses for Giorgio Armani SpA.
Safilo, the No. 2 eyewear maker after Luxottica SpA (LUX), which
captured the Armani license, said late Monday that its net profit
rose 12% to 13.4 million euros ($17.5 million). Net sales advanced
to EUR297 million, up 2.9% from the same period a year earlier.
At 1035 GMT Safilo's shares were up 9.5% at EUR11.50. Its market
capitalization is now EUR648 million, compared with EUR18.9 billion
for Luxottica that has seven times as much revenue.
Group net debt dropped to EUR220 million from EUR243 million at
the end of March 2012, the company said.
Safilo managed to boost sales by 8.3% in Europe, despite the
region's economic weakness, while its sales in Asia fell due to the
"Armani effect" but the brands it still controls posted robust
revenue growth.
Safilo's brands also include Polaroid and Dior.
Write to Christopher Emsden at chris.emsden@dowjones.com
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