On the shelves now: Consumer Weekly #24

In this Consumer Weekly newsletter, we provide a brief overview of the key factors affecting our Consumer coverage, from Luxury & Consumer goods to Retail & E-commerce and Food & Ingredients. This week, we highlight how resilient equity markets had been over the past months, despite a c

On the shelves now: Consumer Weekly #23

In this Consumer Weekly newsletter, we provide a brief overview of the key factors affecting our Consumer coverage, from Luxury & Consumer goods to Retail & E-commerce and Food & Ingredients. This week, we look at the recovery in global passenger air traffic. Happy reading!

Safilo: Return of sunshine after a cloudy Q1?

In our last sector report, we were highlighting Safilo's prudent message given the wait-and-see attitude of US wholesalers ahead of the sun peak season. As we understand that no positive inflection point occurred in March, we expect a 4.6% FX-n sales decline. On a positive note, Q1 margins are set

US eyewear market: looking at a half-full glass for 2024

The 2023 holiday season proved to be a good vintage, as evidenced by stronger-than-expected Q4 revenue performances from our entire Optical sample. Yet, macro uncertainty and a lingering impact from wait-and-see customer behaviour in prescription prevented companies from delivering a more upbeat ou

Safilo: FY24 aEBITDA margin to reap first benefits of last year's inve...

Final FY23 results unveiled by Safilo yesterday evening were in line with pre-released numbers on 30th January. FY23 aEBITDA margin contracted 40bps to 9%, as GM gains were largely reinvested in growth drivers (marketing, digital). After a year of investment, management qualified FY24 as a year of

Kering Eyewear attracted by Marcolin?

Last month, Italian press reports mentioned that PAI Partners would prefer to sell Marcolin to an industrial partner for EUR1.3bn. Earlier this week, Miss Tweed reported that Kering Eyewear was well-positioned to be the winning bidder among three other rivals cited by Corriere Veneto: US-based Marc

Safilo: reassuring Q4 numbers

Yesterday evening, Safilo posted in-line Q4 sales which showed a positive inflection point in Europe and North America on the back of FX-n sales growth in both regions. Safilo guides on a FY23 aEBITDA margin of "around 9%" (-40bp YoY), which would imply a modest margin improvement in Q4 (BGe: +20bp

US eyewear market: chilly summer

The summer proved to be particularly chilly for the eyewear sector given a negative sunglass category and persisting weak consumer demand for prescription. However, recent weeks have seen some reassuring signs such as more predictable customer behaviour returning to pre-Covid patterns and normalisi

Q3 results showing a gradual improvement that should amplify in Q4

Albeit uninspiring, Safilo's Q3 sales and margins were broadly in line with CSS expectations as investors were well aware of the group's adverse environment, i.e. subdued trends in the sunglass category (especially in the mid-range segment) and the lingering impact of the GrandVision phase-out. We

Safilo Group: 2 directors

Two Directors at Safilo Group bought 97,500 shares at between 0.800EUR and 0.812EUR. The significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the las...

US eyewear market: Resilient H1 and good vibes for H2

Initial fears of a soft first half for the US eyewear market proved to be wrong as the half-year period ended with a fairly solid performance in Q2, helped by a stronger-than-expected US economy. Whereas there are clear signs of consumers holding back spending due to inflation, eyecare providers ar

Bumpy Q2, but H2 expected to be more buoyant

Indeed, Q2 proved to be quite bumpy for Safilo which had to deal with the phase out of GrandVision's business in Europe and poor trends in the US. The latter was partly due to unfavourable weather conditions that affected the sunglasses category. However, Safilo weathered these headwinds efficientl

Bryan, Garnier & Co Consumer Daily | ZAL, SFL, CO, ULVR, BOSS, EL

Q1 KPIs: No deviation from Safilo's growth trajectory

Yesterday evening, Safilo reported Q1 numbers matching CSS expectations, both at the sales and profit levels. With 3.2% organic growth, Safilo successfully overcame soft US trends and declining business with GrandVision's banners (Europe). GM gains were reinvested in digital and marketing, leading

Bryan, Garnier & Co Consumer Daily | Casino, Safilo

CMD feedback: with own brands and digital, Safilo is tightening its gr...

The key takeaway from the CMD was the greater priority given to Salifo's home brand PF, which is expected to grow to over 50% of total revenues by 2027 (vs. 42% at end-2022). This approach is completed by a well-diversified PF of licensed brands, enabling Safilo to significantly "de-risk" its growt

Bryan, Garnier & Co Consumer Daily | Hugo Boss, Safilo, Casino

FY22 results and CMD: "Safilo in motion" set to continue at least unti...

Yesterday, Safilo reported FY22 results in line with pre-released numbers in January (see our comment). Investor attention is set to focus on the CMD today, during which management will present more details on the group's 2027 targets for: sales of EUR1.3bn (5yr-CAGR: +4%) and aEBITDA margin of 12-

Bryan, Garnier & Co Consumer Daily | RBREW, ABI, CAGNY, BEI, TKWY, Eye...

Caught between a rock and a hard place, National Vision warns on FY23 ...

Yesterday, National Vision unveiled FY22 results and a FY23 outlook that both missed CSS expectations, leading to a 39% correction in the share price. Whereas this disappointing publication could cast some doubts on the outlook for the US eyewear market, it is clearly company-specific since Nationa