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It had been known for months that the negotiations had started, but the official announcement had never arrived. Now there is: with two brief press releases, released almost simultaneously, Safilo, the historic Venetian eyewear company (it was founded in 1934), is negotiating the sale of the Longarone (Belluno) plant with the French Thélios, a company owned by Lvmh, the largest luxury group in the world.
It was January 26 – the day of presentation of the 2022 results, with revenues growing by 11.1% to 1.07 billion – when Safilo, still today among the industry leaders after Essilux and together with Marcolin, De Rigo and Kering Eyewear , had made it known that he was “looking for alternative solutions” for Longarone. However, none of the four competitors showed interest and in particular Kering Eyewear, Thélios’ “different twin” did not. The company belongs to the French of Kering, the second largest luxury group in the world after Lvmh, but has a different business model: both companies were born to internalize the eyewear business, strategic for the image of a brand and with a high marginality. Among the reasons for Safilo’s crisis in past years is the loss of licenses such as Celine and Dior (go to Thélios) and Gucci, the flagship brand of the Kering group. Unlike Thélios, born as a joint venture with Marcolin, but from 2021 to 100% of Lvmh, Kering eyewear – which in fact is based in Padua, not in the Belluno district – does not have its own factories, but works with a network of producers in the supply chain local. Not only that: if Thélios is “voted” by the Lvmh brands, Kering Eyewear also has agreements with Richemont and has made acquisitions of other luxury eyewear brands, such as Lindberg.
The growth of Thélios has been exponential and a few days ago the announcement of the Bulgari license (previously in the portfolio of Essilux): Safilo’s production capacity can therefore be useful, but the crux on which the negotiations in recent months had stalled it’s the occupation. Thélios opened a model factory of over 20,000 square meters in Longarone in 2018, while the history of the Safilo plant (where around 500 people worked when fully operational) is also its weakness: the personnel who will remain after the inevitable cuts will have to be trained and will have to important investments be made to modernize plants and logistics. The Veneto region has assured its commitment since Safilo’s announcement in January, but details on any social safety nets and incentives have yet to be defined.
In the first quarter, Safilo’s turnover grew by 3.2% to 287.2 million and the portfolio is being redefined: the license with the luxury brand Jimmy Choo failed to renew a few days ago, while it was renewed early yesterday the one with Tommy Hilfiger, a brand with a very different positioning. Lvmh – which closed the first quarter with revenues up 17% to 21 billion – does not officially disclose Thélios’ data, but analysts estimate that the company, which in Longarone alone already employs 900 people (out of a total of 1,350 in the world) and produces over 10,000 pieces a day, is growing at twice the speed of the sector (+24% in 2022 according to Anfao data).