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The UK and Spain are the countries most severely affected by the slowdown of the international eyewear market according to Safilo's chief executive officer, Massimilano Tabacchi.

The statement was given by Tabacchi to financial analysts during a conference call detailing the company's first half financial performance for 2008, as one of several reasons for results that were described as 'extremely disappointing'.

Speaking specifically about the company's UK performance, Safilo UK's sales director Marco Patalano commented: 'As far as the UK market is concerned there has certainly been a general slowdown (particularly on sunglasses) but we are performing in line with our budget and the comparison with the year before is quite difficult due to some extraordinary one-off invoicing put through in the first half of the previous year.'

Other disclosures made by Tabacchi in the conference call revealed that Safilo's net profit fell 36.7 per cent to €21.1m in comparison to €33.3m in the first half of 2007. At current exchange rates, net sales fell 4.6 per cent for the first half of 2008 to €637m, while second quarter net profit for 2008 fell 36.9 per cent to €7.9m in comparison to 2007.

As well the weakness of the US dollar, weak re-orders of Safilo products in Europe in May and June were cited as contributing significantly to these results, particularly in the UK, Spain and Germany. Sales in the European market overall in the first six months experienced a fall of over 5 per cent, which was also due in particular to the strong growth witnessed in the same period in 2007.

Tabacchi also disclosed that the company was discussing the renewal of Safilo's licensing agreement with Gucci.

Safilo's overall wholesale business suffered a 7.6 per cent decline at current exchange rates.

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