* Q1 net sales down 21.3 pct
* Q1 impacted by delivery disruption
* April was a "low month"; deliveries to recover by June
(Updates with conference call details)
May 9 Italy's Safilo, which makes
glasses for Boss, Fendi and other fashion brands, reported a
steep drop in first quarter net sales after a new IT system at
its Padua distribution centre disrupted deliveries.
Sales for the January-March quarter fell 21.3 percent, a
drop the company said was also because its Gucci licence had
ended in 2016.
Net sales of what it calls its Going Forward Brand
portfolio, which excludes Gucci, were particularly affected by
the delivery disruption and fell 14.9 percent year-on-year.
Safilo, which owns the Carrera brand, warned in March that
it expected disruption of deliveries to affect the Going Forward
Brand portfolio, saying sales were expected to fall 15 to 20
Safilo said Going Forward Brand net sales would have grown
in the low single digits without the disruption caused by the
new IT system.
Earnings before interest, tax, depreciation and amortisation
swung to a loss of 9.5 million euros ($10.34 million) from a
positive EBITDA of 19.8 million euros a year ago, as a weaker
top line hurt profits.
Safilo said it had addressed the IT system issues and
expected to establish normal working conditions and service
levels in the Padua distribution centre by the end of June.
CFO Gerd Graehsler said in a conference call that April was
a "relatively low month" due to a low number of shipment days
due to public holidays, adding that May and June will be key
months to recover the delay in deliveries suffered in the first
Graehsler said the company did not so far see a meaningful
amount of order cancellations following the announcement of the
($1 = 0.9189 euros)
(Reporting by Silvia Recchimuzzi in Gdynia; Editing by Edmund