Safilo: H1 13 results: margins have accelerated despite the discontinuation of G. Armani
BUY, Fair Value EUR16.5 (+4%)
Yesterday evening Safilo unveiled H1 13 results globally in line with market expectations. Q2 sales came in at EUR301.4m, fairly in line with consensus (EUR304.7m), down 7.2% as reported and 5.7% LFL. However, Q2 adjusted margins (i.e. excl. the CEO succession plan of EUR6m and restructuring costs of EUR1.4m) were a touch above analysts’ estimates thanks to industrial initiatives and 6% LFL growth in continuing brands. Management specified that July was growing in line with Q2 despite the discontinuation of G. Armani. This release illustrates the improving trends at Safilo. Buy recommendation and FV of EUR16.5 confirmed.
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