Safilo Posts Loss for Year


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MILAN — Safilo Group SpA Tuesday reported a net loss of 47.1 million euros last year, compared with a net profit of 15.4 million euros in 2016, due to the lingering effects of the loss of its lucrative Gucci license and delivery delays caused by its new order-to-cash IT system in its Padua, Italy warehouse. The group’s net loss, as well as its earnings before interest and taxes and earnings before interest, taxes, depreciation and amortization figures, were adjusted to exclude an 192 million euro impairment charge on the goodwill allocated to the group’s cash generating units, as well as nonrecurring costs of 15.3 million euros related to the reorganization of the Ormuz plant in Slovenia and cost-saving and restructuring initiatives. The group’s unadjusted net loss totaled 251.6 million euros in 2017 compared to a 142.1 million euros in 2016. During the company conference call, Safilo management assured analysts that the Padua plant complications have since been remedied and it has been running normally since the start of 2018. Orders from the first quarter are also showing signs of improvement. “We expect 2018 to be flattish or slightly positive. We don’t expect it to be a big year of cash generation, but we

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