SAFILO has problems...................

[Chris Ryser]

UPDATE 2-Safilo FY net falls as demand slows, costs weigh

By Marie-Louise Gumuchian

MILAN, Feb 12 (Reuters) - Eyewear maker Safilo (SFLG.MI) said on Thursday that its net profit fell 71.3 percent last year as demand for its high-end glasses and sunglasses slowed and high production costs in Italy also weighed.

Safilo, which makes eyewear for such designers as Gucci and Dior, said in a statement that revenue fell 3.6 percent year-on-year to 1.148 billion euros ($1.5 billion).

Sales, at constant exchange rates, were in line with 2007, boosted by acquisitions in Mexico and Australia, the company said.

The luxury sector has been hit by disappointing sales and more evidence of restrained spending, even among the super rich.

"2008 has been a year of profound change and a turning point for the eyewear sector which has experienced the first slowdown after years of continued growth," Chairman Vittorio Tabacchi said in the statement.

"The areas of our business most hit by the slowdown in demand and which have been downsized in terms of value and frequency of purchase have, without doubt, been high end products and sunglasses in particular."

Net profit reached 14.6 million euros. The figure excluded an extraordinary provision for deferred taxes, estimated at 35 million euros to 40 million euros.

"(The fall in profitability) ... resulted mostly from the impossibility, in the short term, to significantly scale down the Made in Italy industrial costs and, from a general point of view, the numerous fixed costs in a situation of reduced production volumes," Safilo said.

The company said in a slide presentation to analysts that on current trading, the prescription frames business was resilient, especially in the United States and Europe, while the sunglass market remained tough.

Executives on a conference call said capital expenditure this year would be 40 million to 45 million euros and that management's priority was to reduce debt. ............................................................ ....

continued at: http://www.reuters.com/article/compa...=LUX.N&sp=true

[optical24/7]

Chris, you're breakin' mine and fezz' hearts!!



:bbg::bbg::bbg::bbg:

[Chris Ryser]

Safilo SpA (Milan Stock Exchange) 52-wk High €2.35



As of 10:33am EST
0.49EUR


Price Change
-0.04


Percent Change
-6.99%

[Johns]

Chris, you're breakin' mine and fezz' hearts!!



:bbg::bbg::bbg::bbg:

Seriously though...it is sad in that all of these failures are marking the end of an era for both them and us.

[optical24/7]

Seriously though...it is sad in that all of these failures are marking the end of an era for both them and us.

Sorry Johns, my fiddle is already broke too... ( for this particular company ) or I'd play a dirge for them..

[LENNY]

Maybe now they will close all the internet accounts that sell their stuff $20 over wholesale!?

[optical24/7]

Maybe now they will close all the internet accounts that sell their stuff $20 over wholesale!?

Hey! They're your "partner"...Don't you profit from *their* Internet sales??





I'm sorry if I've sounded harsh....I truly wish them the same success here in America as Menrad, Logo, Metzler, Universal,..........

[Matthew]

I thought that internet sales were off limits per Safilo's policy?

[Johns]

Sorry Johns, my fiddle is already broke too... ( for this particular company ) or I'd play a dirge for them..

I know, I know....I hear ya. Even though I don't like them or use them, I'm going to miss having them to kick!

[optical24/7]

I know, I know....I hear ya. Even though I don't like them or use them, I'm going to miss having them to kick!

Hey! We gotta have a red headed stepchild to kick around. But I'll gladly pick another after their gone!




* disclaimer; No redheaded stepchildren were harmed (intentionally) or offence directed towards with this post....

[MicheleS]

We can talk about the down economy hitting them hard all we want but what it really boils down to is, they raised their prices 2 times in a year, reduced the discounts to their customers and no long offer a printed catalog and then have the nerve to tell you that you have to order a minimum quanity of their high end stuff to be able to continue to carry those pieces in your shop. And all of this happened before the ecomony went south!! :finger:

[Johns]

We can talk about the down economy hitting them hard all we want but what it really boils down to is, they raised their prices 2 times in a year, reduced the discounts to their customers and no long offer a printed catalog and then have the nerve to tell you that you have to order a minimum quanity of their high end stuff to be able to continue to carry those pieces in your shop. And all of this happened before the ecomony went south!! :finger:

Now there's a blueprint for success.

Who buys from them anyway?

[Chris Ryser]

Safilo SpA (Milan Stock Exchange)
52-wk High €2.25
52-wk Low €0.44


As of 5:51am EST
0.42EUR


Price Change
-0.04


Percent Change
-8.97%

[DragonLensmanWV]

Now there's a blueprint for success.

Who buys from them anyway?

I used to carry a lot more than I do now. Now I just carry the tank-like Elasta 3000 series and some Claiborne for women.

[KStraker]

We still carry the Carrera Flexolite offerings and they sell very well. They are reasonably priced. We also have some of the original beefy hinge models and that's it.

[Jubilee]

We still carry quite a bit of Safilo. Nine West, Claiborne and Liz Claiborne still do very well for us. Our other location also has the J-Lo collection which sells.

[Chris Ryser]

Safilo SpA (Milan Stock Exchange)
52-wk High €2.25
52-wk Low €0.44

As of 3 Mar 2009
0.36EUR
------------------> US $ 0.452232



Price Change
-0.05



Percent Change
-11.22%

[obxeyeguy]

Not bad, only an 84% drop off the years high.

[Chris Ryser]

Safilo SpA (Milan Stock Exchange)
52-wk High €2.25
52-wk Low €0.32



As of 10:24am EST
0.32EUR -------------------------> US $ 0.404896


Price Change
-0.05



Percent Change
-12.71%

[Fezz]

See how bad they are doing since many have:


Joined the REVOLUTION!

[optical24/7]

:p:p:p:p:p:p:D

[Chris Ryser]

Safilo SpA (Milan Stock Exchange)

52-wk High €2.20
52-wk Low €0.32



As of 7:17am EDT
0.29EUR -----------------------> US $ 0.365


Price Change
-0.03


Percent Change
-9.09%

[Johns]

Safilo SpA (Milan Stock Exchange)

52-wk High €2.20
52-wk Low €0.32



As of 7:17am EDT
0.29EUR -----------------------> US $ 0.365


Price Change
-0.03


Percent Change
-9.09%

WOW! A "powerhouse" reduced to a penny stock! Now if that's not telling, I don't know what is.

How long will they hold on?
Who else is (or isn't) in trouble to that extent?

[Bill West]

to get the deals.
They developed an attititude years ago and slowly sunk.

[Johns]

to get the deals.
They developed an attititude years ago and slowly sunk.

As of late, the sinking is of Titanic proportions!