Yahoo Finance Marcolin Sales Were Flat, but Profitability Is Up
MILAN — Marcolin got more profitable in the latest quarter, though sales were relatively flat due to discontinued licenses with Bally, Moncler and Candie’s, and the end of a distribution agreement with Barton Perreira.
At the same time, the Italian eyewear company touted the renewal of the GCDS, Zegna, Max&Co. and Skechers licenses, and the signing of new agreements with Christian Louboutin, entering the segment for the first time, and K-Way. Collections for both brands will bow in 2025.
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In the three months ended March 31, Marcolin net profit rose 7 percent to 7.3 million euros.
Adjusted earnings before interest, taxes, depreciation and amortization amounted to 25.7 million euros, up 8.5 percent compared with the first quarter last year, a 17.6 percent margin on sales. Operating profit rose to 19.1 million euros compared with 17.1 million euros last year.
Sales dipped 4.4 percent to 145.6 million euros compared with 152.3 million euros in the first quarter last year. On a like-for-like basis, excluding the positive impact of the new brands in 2024 together with the negative impact of the brands discontinued in 2023, revenues were flat, inching down 0.4 percent.
Founded in 1961 in Longarone, in Italy’s key eyewear manufacturing district, Marcolin counts licenses for brands ranging from Adidas and Max Mara to Tod’s, Timberland and Pucci, to name a few. The company’s owned brands include Web Eyewear and Ic! Berlin, which it bought in November, bringing in the company’s 140 employees. In April last year, Marcolin signed a perpetual license with Tom Ford as part of The Estée Lauder Cos.’ takeover of the American designer’s business for about $2.3 billion.
In March, commenting on the company’s 2023 performance, chief executive officer Fabrizio Curci said “a clear vision and well-defined objectives, implementing a growth plan based on the optimization of the processes, commercial investments, rationalization of the partnerships, operative digitalization and sustainability,” were key to face the complex global economic and geopolitical scenario.
The executive said this strategy “continues in 2024 with the ambition to further consolidate our portfolio, which already today covers all the most important segments, and to pursue the efficiency of all the operational activities.”
In the first quarter, the Europe, Middle East and Africa region was down 4.4 percent to 73.1 million euros, representing 50.2 percent of the total. On a like-for-like basis, sales were up 2.2 percent. Sales in the Americas fell 10.2 percent to 52 million euros, accounting for 35.7 percent of the total. On a like-for-like basis they decreased 7.4 percent in that market. Revenues in Asia amounted to 13 million euros, climbing 19.1 percent. Sales in the Rest of the World area rose 7 percent to 7.4 million euros.
The adjusted net financial position totaled 355.1 million euros, an increase of 10.7 million compared to Dec. 31, which the company attributed to the seasonality of the business typical of the first quarter.
The numbers come as speculation mounts that private equity firm PAI Partners, which took a majority stake in the company in 2012, is looking to exit the business. PAI Partners and Marcolin declined to comment on the rumors.
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