Safilo beats forecast with rise in turnover

The company, which has the optical licence to the Polo Ralph Lauren, Gucci, and Christian Dior designer lines, among others, will be investing 8 per cent of the turnover in advertising this year. Safilo said that forecasts of last year's turnover, at roughly 930bn lire, had been strongly surpassed, and the 17 per cent increase had led the group's chairman to give an upbeat appraisal of Safilo's progress. 'We are most satisfied with the results achieved in 1999,' said chairman Vittorio Tabacchi. 'They have successfully reached the growth and development goals we have been striving towards for some years.' In 1999 sales increases were reached of 19.1 per cent in Europe (including Italy) , North America 14.6 per cent, and the rest of the world 20.2 per cent. Out of total turnover, the sports division, with its Carrera and Smith lines, showed a particularly strong increase in sales, with a 21 per cent rise. Net borrowing requirements at the end of last year were down compared to 1998, from 250bn lire to 229bn. The board, which is set to meet again on April 27, approved the budget for the business year 2000. It forecasts an additional rise in sales to 1,100bn lire, an increase of 12 per cent, 109bn of which is expected to be generated by the sports segment. Trading profits for 2000 were also forecast to rise compared to 1999. Further investments amounting to 70bn lire are in the pipeline for projects including the creation of Safilo's new central distribution structure in Padua, the building of the new US-based Smith Sports Optics headquarters in Sun Valley, Idaho and the extension of the Optyl production capacity. A new collection of sunglasses under the Fossil label is now being presented on the Italian market.