Safilo Points to Recovery After IT System Problems


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MILAN — Safilo Group SpA on Wednesday said that it made a “significant recovery” in the first quarter of the year — a period of transition that saw former chief executive officer Luisa Delgado leave the company and new ceo Angelo Trocchia take the reins — as the company recovered from problems with the implementation of a new information system rolled out at the Padua distribution center in the first quarter of 2017. In a statement released after the close of trading in Milan, where the company is listed, Safilo said first-quarter net sales were up 6.9 percent at current exchange rates to 250.9 million euros. At constant exchange rates, sales rose 15.4 percent. The company — which produces frames under license for brands including Dior, Givenchy and Marc Jacobs as well as own brands Safilo, Carrera and Smith — reported a 9.1 percent increase in gross profit to 127.5 million euros as the gross margin edged up to 50.8 percent of net sales, compared to 49.8 percent in the first quarter of 2017. Adjusted earnings before interest, taxes, depreciation and amortization were positive to the tune of 13.1 million euros, compared to a loss of 6.2 million euros in 2017. The company explained that

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