MILAN — A strong eyewear business, a solid foothold in Italy and expansion around the world helped Italia Independent Group SpA report a 14 percent gain in 2014 net profit to 610,000 euros, or $811,300, from 540,000 euros, or $713,000, in 2013.
In the 12 months ended Dec. 31, revenues climbed 32.1 percent to 32.9 million euros, or $43.7 million, compared with 24.9 million euros, or $33 million, in the previous year.
Andrea Tessitore, the group’s cofounder and chief executive officer, told WWD he was especially pleased with the performance in light of the difficult local market. “The weather factor was terrible last year, one of the worst in the past 30 years,” said Tessitore, referring to prolonged months of rain that hit Italy in 2014. The group’s eyewear business accounted for 79.4 percent of total sales. Tessitore pointed to a 13.6 percent growth in Italy of the eyewear division, which reached 12.7 million euros, or $17 million. The company has also been expanding outside the country. In the U.S., the eyewear channel climbed 81.1 percent to 1.9 million euros, or $2.6 million. In April, a store will open in Miami’s Wynwood neighborhood, followed by a unit on Melrose Avenue in Los Angeles over the next few months. In December, a store opened in New York. Tessitore said Florida and New York have been and remain key for growth, expecting double-digit gains in the U.S. in 2015 as well.
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Last year, the eyewear division in France, Spain and Germany grew 81.5 percent to 6.2 million euros, or $8.2 million and the rest of the world gained 59.4 percent to 5.2 million euros, or $7 million. Tessitore said France, where Italia Independent opened a flagship in Paris last year, and Spain continue to be priorities this year. In 2014, the company set up branches in France and Brazil.
Last year, exports accounted for 51.4 percent of sales, compared with 41.1 percent in 2013.
Also, the group’s retail channel jumped 169 percent to 1.4 million euros, or $1.8 million.
Earnings before interest, taxes, depreciation and amortization gained 18.6 percent to 5.6 million euros, or $7.4 million.
Operating profit fell almost 8 percent to 1.9 million euros, or $2.5 million, compared with 2.14 million euros, or $2.8 million, in 2013, dented by the impact of the amortization of costs tied to the opening of stores and the group’s new offices, as well as to the increase in accruals to a mix of provisions.
Dollar amounts are converted at average exchange for the periods to which they refer.
Tessitore said he was “very optimistic about business in 2015,” leveraging on the company’s “strong business model” and collaborations of the “highest level,” citing for example the recent three-year tie-up with Hublot and a new partnership with Adidas Originals for an eyewear project unveiled at the sector’s recent Mido tradeshow.
With Hublot, at the Baselworld fair earlier this month, Italia Independent unveiled new sunglasses and watches in Texalium, an innovative aluminium-coated carbon fiber. “This is not a marketing project, it has substance and you can tell that there are two teams behind it that developed the products. We expect commercial success — this is not only about media return,” contended Tessitore.
Over the year, the group forged several relationships and launched, for example, an interior design mirror, developed with Meritalia, shaped as the brand’s iconic 090 sunglasses; it partnered with Adidas Originals for a shoes and an accessory capsule collection, as well as with MCS and Colmar on apparel. The company also comprises communication and advertising agency Independent Ideas.
In January this year, the publicly listed company launched a new eyewear family called Eyeye based on the digital printing technology with a price to the public of about 80 euros, or $87.57 at current exchange rate.
Tessitore also highlighted how the group strengthened its organization over the past year, raising the number of employees to 160, up 58 percent from 2013. “We are structured to face 2015,” he said.
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