De Rigo’s revenues rose to EUR 413.6 million due to the opening of new branches and the strengthening of the licensed brand portfolio
The De Rigo Shareholders have approved the Group’s 2016 draft financial statements, which confirm yet another positive year, with 2016 consolidated sales reaching EUR 413.6 million (+2.6 percent).
These results are all the more impressive if we consider the un-favourable international economic context, and indeed consolidate the Group’s major successes of the previous year.
The Wholesale Division registered a 2.9 percent increase in revenues, reaching EUR 237.8 million. Furthermore, the acquisition of REM Eyewear, one of the leading eyewear distribution companies on the American market, had a significant impact on the 2016 financial statements in the second half of the year. This strategic move strengthened De Rigo’s distribution platform in the US. Further growth in the international business stemmed from the acquisition of the Group’s Australian distributor and the consequent establishment of De Rigo Australia.
The positive sales results were also influenced by the new licensed brands Zadig&Voltaire, Trussardi and Nina Ricci, which made a significant contribution to the overall performance in 2016.
The year was further marked by the rationalization of other very important markets for the Group, and the opening of two new direct subsidiaries, both inaugurated in January 2016: the first (De Rigo Vision Middle East) in Dubai, and the second (De Rigo Vision DACH) in Frankfurt, to strengthen the Group’s presence in the German market.
The Retail Division registered a 2.6 percent increase in revenues, reaching EUR 189.8 million, taking into account the increased sales in the Group’s own chain, General Optica (Spain), and offsetting the contraction (-2.1 percent) experienced by the Opmar Optik chain as a result of Turkey’s local economic and political situation and the collapse of the Turkish lira.
The 2016 EBITDA settled at EUR 29.8 million as at 31 December 2016, while, at the same date, the De Rigo Group reported a positive net cash position of EUR 24.4 million, despite large investments in acquisitions, in the opening of 13 stores in Spain, and in the upgrading of the Group’s information and logistics systems (totaling EUR 13 million).
Brexit affected the Group’s accounts by bringing the cost of contributions to the UK pension fund to EUR 11.7 million, compared to EUR 8.2 million in 2015.
“This is a complex time for the eyewear industry, which is experiencing significant structural changes worldwide, but our Group is performing well, responding quickly to market changes and pursuing its targeted investment policy. This is largely made possible by our solid financial structure, which enables us to make strategic decisions on the international market, quickly and dynamically”, said Ennio De Rigo, Chairman of the De Rigo Group.
The year 2017 is also showing positive signs, with the advance renewal of two strategic licensing agreements, one with Chopard for the luxury sector, and the other with Escada for the fashion sector.
About De Rigo :
De Rigo Vision Spa, founded in Longarone (Belluno) in 1978 by brothers Ennio and Walter De Rigo, is a world leader in the design, production and distribution of top quality prescription eyewear frames and sunglasses.
The De Rigo Group is active in all the major markets of the world with its own brands Lozza, Lozza Sartoriale, Police and Sting, and with the licences Blugirl, Blumarine, Carolina Herrera New York, CH Carolina Herrera, Chopard, Converse, dunhill London, Escada, Fila, Furla, John Varvatos, Jonathan Adler, Jones New York, Lanvin, Loewe, Lucky Brand, Nina Ricci, Tous, Trussardi, Victor Hugo, and Zadig&Voltaire.