Safilo Q3 and 9M 2016 trading update

In the third quarter of 2016, Safilo’s total net sales reached Euro 288.0 million, growing 1.1% at current exchange rates and 1.7% at constant exchange rates. In the quarter, sales of the Going Forward Brands Portfolio grew 3.0% at constant exchange rates (+4.3% excl. Retail). In the first nine months of the year, sales of the Going Forward Brands Portfolio progressed by 4.7% at constant exchange rates (+6.1% excl. Retail). As a consequence of the negative impact of the brands that the Group stopped/will stop servicing, Safilo’s total 9M net sales declined 2.2% at current exchange rates and 1.0% at constant exchange rates, reaching Euro 939.1 million. Q3 2016 gross profit equaled Euro 169.4 million, up 1.1% compared to Euro 167.5 million in the third quarter of 2015. Gross margin remained stable at 58.8% of net sales compared to the third quarter of 2015. In the first nine months of 2016, Gross Profit reached Euro 564.0 million, down 2.3% compared to Euro 577.4 million in the corresponding period of 2015, while gross margin was substantially flat at 60.1% of net sales (60.2% in the first nine months of 2015).