Marcolin reported sales down by 9.2m for the first half of 2005, as a result of the non-renewal of the Dolce & Gabbana contract. Pre-tax profit was 0.4m compared to 6.2m as at June 30 2004.
The company reported that sales of Dolce & Gabbana Eyewear were down 7 per cent, D&G Dolce & Gabbana Eyewear were down 17 per cent and there was a reduction in the Cb line of 27 per cent, set against a positive trend of a 17 per cent rise in Roberto Cavalli Eyewear.
There was a major reduction in sales in Europe, 21 per cent, and in Italy, down 9.8 per cent - geographical areas where sales of the Dolce & Gabbana and Cb lines are most concentrated.
It added that a 'less positive reception of new product lines' led to the sales decrease for Cb, found above all in France. As a result, the French subsidiary is being reorganised with the 'closure of some production departments and consequent use of outside sources'.
The decrease in sales for the Dolce & Gabbana lines was 'mainly due to the uncertainty generated in the market by transfer of the licence to the Luxottica Group, which will take place, for the main international markets, from October 1'.
Marcolin added that investments had started for the launch of its new licences - Just Cavalli, Tom Ford and Ferrari - the positive effects of which were expected from 2006.
General manager Antonio Bortuzzo said: '2005 is a year of transition for the company, since non-renewal of the contract with Dolce & Gabbana and the time and costs necessary to start production of the new licensed lines will weigh down the year's results significantly, until the introduction of the new brands makes its positive effect felt.'