Safilo: Armani will not renew the license

Safilo Group has been informed by the Armani Group of their decision not to renew, beyond the natural expiration date of December 31, 2012, the license agreement for the design, production and distribution of the Giorgio Armani, Emporio Armani and A/X Armani Exchange eyewear collections.

Safilo’s sales through the Armani Group’s licenses were approximately Euro 165 million in 2010 and Euro 125 million in the first nine months of 2011.

In light of the non-renewal and based on the current portfolio of brands, the Group's medium-term financial targets, communicated on September 29, would be lower by approximately Euro 150-200 million at the net sale level in 2015, while the EBITDA margin would reach 13.5% instead of 15%. However, Safilo is confident that it can achieve its medium-term business and economic targets through further developing its current portfolio of brands, new Safilo own brands and future additional licensing agreements.