PADUA, Italy—Safilo Group S.p.A. reported preliminary net sales of €962.9 million for the financial year ended Dec. 31, 2018, a 4.0 percent decrease from year ago at constant exchange rates and a 7.0 percent drop at current exchange rates. This performance is substantially in line with the expectation formulated by the Group on net sales for the year. In Europe, which accounts for nearly half of Safilo’s revenue, net sales totaled €452 million, flat with 2017 at constant exchange rates, but down 1.2 percent at current rates.

In North America, which accounts for 39 percent of Safilo’s total revenue, net sales were €371.3 million, down 8.1 percent from year ago at constant exchange rates, and 12.1 percent at current rates. Wholesale net sales accounted for €319.1 of the total North American business, down 6.6 percent at constant exchanges rates and 10.6 percent at current rates.|

The frame maker said its worldwide wholesale business declined by 5.1 percent in 2018 at constant exchange rates.

In the fourth quarter of 2018, Safilo posted preliminary net sales of €249.1 million, up 1.3 percent at constant exchange rates and 1.8 percent at current rates compared to the same period of 2017. Net sales in Europe climbed to €120.4 million, up 25.1 percent from year ago at constant exchange rates, and up 23.8 percent at current rates. Net sales for North America fell to €90.9 million, down 9.5 percent from year ago at constant exchanges rates, and down 6.3 percent at current rates.

Wholesale net sales in North America accounted for €78.7 million of total net sales, a 6.7 percent drop from 2017 at constant exchange rates and down 3.6 percent at current rates. Globally, Safilo's wholesale business decreased 4.1 percent from 2017 at constant exchange rates.

In terms of operating performance, Safilo expects that the cost saving program executed in the second half of the year will allow it to close the year with an adjusted EBITDA margin close to 5 percent, at the high end of its expectation range for the year of 4 percent to 5 percent.

Safilo’s full year annual results will be approved by its board of directors on March 13, 2019.