Eyewear maker De Rigo reports sales fall in H1

29 Jul '05

6 min read

Analysing consolidated net sales by geographic area, net sales in Europe amounted to EUR 238.0 m, a decrease of 3.8%, primarily as a result of lower sales through the Group's retail companies and a decline in wholesale sales in certain markets. Net sales in the Rest of the World increased by 5.0% to EUR 25.4 m, reflecting the Group's positive results in certain Far Eastern markets. Net sales in the Americas amounted to EUR 4.1 m, a decrease of 6.8%, primarily as a result of lower sales in the US market.

De Rigo's overall consolidated net sales results reflected the contribution of each of the Group's principal business segments: Wholesale & manufacturing sales amounted to EUR 79.4 m, a decrease of 4.1% from EUR 82.8 m posted in the first six months of 2004.

Wholesale & manufacturing sales in the first six months continued to be impacted by the expiry of the Group's license agreement with Fendi as of the end of 2004. Management expects that the negative impact on the segment's sales of the expiry of the Fendi license will eventually be more than offset by increased sales under the new license agreements De Rigo signed with Chopard, Ermenegildo Zegna, Escada and Jean Paul Gaultier during the last quarter of 2004 and first quarter of 2005.

However, deliveries of Chopard and Escada-branded eyewear have only started recently, while those of Ermenegildo Zegna and Jean Paul Gaultier products have not yet started. As a result, sales of the new brands contributed less to the segment's sales during the first six months of 2005 than those of Fendi-branded eyewear during the first six months of last year.

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