Safilo sees Gucci licence renewal "as soon as possible"

Italian eyewear maker Safilo expects to renew a licence with Gucci "as soon as possible", Vice Chairman and Chief Executive Officer Massimiliano Tabacchi said on Wednesday.

"The Safilo team and Gucci team are working together for the renewal ... we anticipate this renewal, it is a very important renewal for us," Tabbachi told analysts on a conference call.

"We expect to have this renewal as soon as possible."

Safilo H1 net falls, cuts 2008 forecasts

Italian eyewear maker Safilo (SFLG.MI: Quote, Profile, Research) reported a fall in net profit of more than a third in the first half of the year, hit by a weak dollar, and cut its 2008 forecasts because of weak European markets.

Safilo, whose brands include Armani, Dior and Gucci, said in a statement net profit fell to 21.1 million euros ($32.89 million) from 33.3 million euros a year ago. Net sales fell to 637 million euros from 667.8 million euros.

"We believe that the European market will continue to remain weak even in the upcoming months and we are therefore looking to the second part of the year with greater caution," Vice Chairman and Chief Executive Officer Massimiliano Tabacchi said in the statement.

Safilo cut its forecast for sales growth for the year to around 4 percent at constant exchange rates from a previous forecast of 7 percent to 8 percent.

It expects EBITDA at around 13.5 percent to 14 percent of revenues, down from a previous estimate of about 15 percent. Net profit should be 3 percent to 3.5 percent of revenues, down from a previous forecast of 4.5 percent to 5 percent.

WEAK DOLLAR

Safilo registers around 40 percent of its business in dollars, and said its performance was penalised by the "ever more marked weakness of the U.S. dollar."

At constant currencies, net sales rose 1.3 percent.

American sales saw double-digit growth at constant exchange rates with the consolidation of new retail stores and a chain in Mexico as well as the "good increase" in prescription frames and sunglass sales volumes in the wholesale business.

Asia saw double-digit growth, with "particularly brilliant results" in the Chinese and Korean markets. Spain, Britain and Germany were particularly hit by fragile consumer buying.

In Italy, results were in-line with last year. Safilo noted weak re-orders in Europe in May and June.

Safilo competes with Italy's Luxottica (LUX.MI: Quote, Profile, Research), to whom it lost a deal with designer Stella McCartney. Analysts say Luxottica's signing the McCartney brand, part of French group PPR (PRTP.PA: Quote, Profile, Research) which also owns Gucci, puts more pressure on Safilo to renew the Gucci licence.

Tabacchi said negotiations on this were going "pretty good."

"We expect to have this renewal as soon as possible," he told analysts on a conference call.

Safilo shares closed up 7.26 percent at 1.15 euros before the statement came out.

Shades of summer

From goggles to rimless study glasses, designer boutiques are spilling with eyewear options this summer. It’s time to say ‘Eye do’ to sunglasses

Jimmy Choo
If exclusivity is anything to go by, eyewear from Jimmy Choo has made a smashing debut this year. With Choo, sunglasses only get bigger. Their Boo and Kat styles are perfect for those who love to remain incognito—even Jennifer Lopez is hiding her tired eyes behind them. Mostly oversized frames in red, topaz and pink, they even come with Swarovski detailing to add some glitter. Sex up your eyes with knotted snake effect of their JJ sunglasses (This style appears in their sandals too). A one-time splurge is guaranteed to get the twinkle back in many an eye.

Bottega Veneta
Through Bottega Veneta sunglasses, the world is definitely rosy. Aviator shades command as much attention as the bags at the Italian design brand this season. They command a stiff price too — walk into a store only if Rs 55,000 is not too much to spare. With their signature weave design; these handcrafted aviators come in earthy frames of old bronze and copper. Also, you can brighten up your days with their Gray Gradient sunglasses that are a winner. All their pairs come in a lovely case with the 'intrecciato' woven leather, so it's like buying two beautiful things for the price of one. And yes, each pair of sunglasses comes with a detachable leather cord so that you can comfortably wear them around your neck as well.

Gucci
Stabbing would be fashionable if women needed a prescription to wear Gucci eyewear. Retro looks with Lolita-heart glasses and tortoiseshell borders have made a serious comeback. Frames of Gucci's Spring Summer 2008 collection are a cure for sore eyes. The Black Horse Pit and the buckle frames are ones to watch out for. Mauves, reds, purples and yellows sit pretty on shelves and prettier on noses. No wonder our fashionistas have already created a demand-supply deficit as far as the sole Swarovski-studded pair in the collection goes.

Roberto Cavalli
Some summers are hot enough for a chic European look that demands a fabulous pair of Roberto Cavalli sunglasses. Aviator style glasses rule here too. Unlike his fixation with Swarovski and encrusted diamantes last year, these aviators feature metal stud details on the arms and bridge. It's hard to miss the meticulous detail in the laser inscribed logo on the side. Like every year, Cavalli's premiere couture line is sure to make heads turns.

Rating: Very good

At Shoppers Stop and leading optical boutiques

Moschino
Moschino's latest line leaves one spoilt for choice. It has 24 ophthalmic frames and 24 sunglasses in plastic and metal. One can tell Moschino by graphic icons like the heart, which appears predominantly throughout the collection, often embellished with Swarovski crystals. Other trademark motifs include peace symbols, question marks and studs. Colours range from bronze, gold, palladium, ruthenium, brown, black and ivory to Moschino favourite reds, blues and leopard prints.

Kavita Chougule
I have checked out the Jimmy Choo sunglasses online and found them great but right now, I am in love with my Tom Ford’s. They may be next, considering I buy myself a new pair every two-three months.

Mandira Bedi
I feel best behind very dark, huge sunglasses. Usually, it’s a pair of DKNY that I splurge on.

Maria Goretti
A classic pair of Gucci is a must-have. Although I have branded shades, I also have a stock of cheap but good sunglasses too. I have a tendency to lose them so they’re perfect.