Major fashion realignment
The licensed fashion segment has undergone rapid changes this year, due in part to LVMH parting with Safilo on a series of licensing agreements (Dior, Fendi and others) expiring at various times through 2024
LVMH’s decision to take its eyewear business in house after working with licensee Safilo for 20 years, was an outgrowth of its Thelios joint venture with Italian eyewear maker Marcolin, which now produces for its brands as well as for Stella McCartney.
“Safilo reported a 2.5% revenue increase in the third quarter ended Sept. 30, benefitting from the addition of an Under Armour license (for sunglasses and ski goggles) gained through its acquisition of Blenders Eyewear. It also reported strong sales of Kate Spade, Tommy Hilfiger and Jimmy Choo-licensed products, offset by a decrease in revenue from Polaroid items, which haven’t recovered to “pre-pandemic” sales levels in core markets like Russia“, Safilo CEO Angelo Trocchia said.