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.

How to get dressed: Sunglasses

Lasting doom is upon us this summer. How do we know? The invasion of coloured sunglasses
Once in a while, an everyday item strays so far from its original functional purpose that one finds oneself wondering whether civilisation really has plumbed so far into the depths of decadence that only universal and lasting doom is left.

If that sounds a little melodramatic, not to mention alliterative, I’m afraid coloured sunglasses are to blame. By coloured, I don’t mean the various muted shades of tortoiseshell or black that used to pass for choice in the dim and distant past when Reason still held sway. And by sunglasses, I don’t mean the lenses, where colour may indeed serve a useful ophthalmic purpose. I mean the frames. For as you will have noticed – unless you have been fortunate enough to have spent what passes for our laughable summer on Pluto – red, yellow, green and, lawksamercy, pink sunglasses are the very height of fashion this year.

That’s progress for you: last year, we had the very silly-looking white sunglasses craze. This year, we have the completely stupid school of Bob the Builder, multicoloured, very plastic look. Which means that if spending half the morning co-ordinating your hair extensions with your vast collection of Birkins isn’t enough to fulfil you creatively as an artist, then you can at least bolt on another hour or two while you decide whether to match or clash your specs with your toenails.

Perhaps it’s the experimental nature of this display that in part explains the appeal of coloured sunnies. Or perhaps Ray-Ban just sent out loads of freebies. Either way, all the usual suspects have been turning out in support of this trend: Lily Allen in a lime pair, Paris in – surprise, surprise – a pink pair, Jessica Simpson in a red pair, Drew Barrymore and Sienna in white (must be a retro thing), and where they so fearlessly tread, others follow. Type “coloured sunglasses” into Google and the screen leaps to life with blogs from lesser mortals plaintively asking where they can get hold of cheaper versions (Topshop, for starters).

The funny thing is that while sunglasses are supposed to be the modern-day equivalent of a mask, the expression on all these coloured sunglasses wearers is all too blatantly apparent. It’s the “Hey, I don’t take myself seriously, you know; now where’s that assistant who wipes the gunk off my shoes?” look. If sticking your tongue out at paps wasn’t so 2007 and flicking a V for Victory wasn’t so 1945, they’d do that instead. So top marks for ingenuity. And A* all round, I suppose, for reacting to this rubbish summer with an utterly rubbish pair of sunglasses.

As for why mere mortals are buying them in packs, my extensive research suggests that they find the classic tasteful sunglasses of their mothers boring. That would be boring in the same way that Mies van der Rohe is boring. Oh well, they’ll learn.

Hawaiian brand Maui Jim sashays into Europe

US. Maui Jim Sunglasses, the Hawaiian supplier of sports, fashion and classic sunglasses, has unveiled new frames featuring patented multi-layered PolarizedPlus2 lens construction, said to give unrivalled protection from UV and glare and excellent colour definition.

Kula, a stylish wraparound shield, has a single lightweight polycarbonate lens which has been coated to protect the eyes from direct, reflected and bounce-back glare. Broad temple design with strong silver alloy hinges and wide legs with a subtle stripe present a smart contemporary look. The rimless style has a robust and lightweight design.

Kula (style 514) is available in black with grey lenses, metallic copper with HCL bronze, or Sandstone with Maui Rose lenses. Fashionable white is one of the frame colourways on offer with the new Kaimana and Lehua sunglasses.

Kaimana (style 204) is a mid-size rectangular frame with SuperThin ST lenses which is available in black with grey, and green or brown with HCL bronze and well as white with Maui Rose lenses.

Lehua (style 203) is a rounded frame with wide temples for a fashionable look. Besides white, this frame comes in brown with HCL Bronze and black with grey ST lenses.

On display at the TFWA Asia Pacific show in May were the new Kapena (207) and Harbor (206) aviator shapes, both made from Monel metal for durability and adjustability with non-slip nose-pads and spring hinges.

The styles are available in gunmetal black frame with neutral grey lens or matte bronze with HCL bronze lens. Kapena has an unusual two-tone temple design and Harbor has a mottled pattern on one side of the temple and a solid colour on the opposite side.

The sophisticated new Peahi (202) style in lightweight, hypoallergenic nylon (cellulose propionate) also boasts SuperThin lenses and rectangular frame and clean masculine lines. It is offered in black with neutral grey lens or tortoiseshell effect with HCL bronze lens.

Left: The Kula wraparound shield style in copper and bronze. Right: The Kapena aviator shape with two-tone temple design

Progress in European and Americas travel retail

Following the 2008 IAADFS show in the Americas, Maui Jim has achieved new listings with independent retailers in Texas, St Kitts, Guyana and Uruguay.

The company has also entered an agreement with Gebr Heinemann starting with Mauritius Duty Free Paradise Co and expanding later to travel retail outlets in Europe.

At Aelia outlets in France, sales of Maui Jim Sunglasses in the first quarter were more than double last year's figure.

Meanwhile, at World Duty Free in the UK, the Maui Jim Sport collection has seen sales up +30% but the latest fashion models, including Palms and Bamboo, are also performing well, according to the company.

Kappé International introduced the Maui Readers bifocal reading sunglasses at Amsterdam Schiphol Airport and the response has been excellent, said the supplier.

After just three months of listings at Moscow Domodedovo Airport with Aer Rianta International, the brand was ranked the third most popular sunglasses label and listings in Kiev and Sheremetyevo Airports have followed.

Speaking of the brand's success in Europe, Maui Jim Sales Manager Duty Free Europe and Middle East Martine Larroque said: "We have launched a string of great new styles recently from retro-glamour girl frames to slick masculine lines and all with our unique patented PolarizedPlus anti-glare technology. Now the brand is really taking off in fashion-conscious Europe."