MILAN — Eyewear firm Marcolin closed 2024 on solid ground, with improved profitability and growth in the key Europe, Middle East and Africa region.
In the 12 months ended Dec. 31, adjusted earnings before interest, taxes, depreciation and amortization amounted to 85 million euros, up 10.2 percent compared with 2023, and a margin of 15.6 percent of sales, compared with 13.8 percent in 2023.
Adjusted operating profit improved to 57.8 million euros compared with 52.8 million euros in 2023.
The Italian company produces eyewear collections for brands ranging from Zegna and Max Mara to MCM, Pucci, Guess, Timberland and Adidas Original, to name a few. In 2023, Marcolin inked a perpetual license with Tom Ford as part of The Estée Lauder Cos.’ takeover of the brand’s business for about $2.3 billion.
Last year Marcolin renewed its licenses with Zegna, GCDS, Max&Co. and Skechers and, while Moncler signed with EssilorLuxottica, Marcolin added new agreements with Christian Louboutin, K-Way and Abercrombie & Fitch Co.
While sales decreased 2.2 percent to 545.8 million euros, compared with 558.3 million euros in 2023, chief executive officer Fabrizio Curci pointed out that, organically, sales were up 1.7 percent at constant exchange rates.
He touted “substantially stable and slightly positive” organic revenues, highlighting “strong margins, growing substantially in absolute and relative terms. This is the important figure in my opinion and it is at the top in the market.”
Curci attributed the growth to the strategy embraced over the past four to five years of “rebuilding a portfolio of brands that would be balanced and consistent as much as possible, premium luxury and more accessible, allowing Marcolin to sell to all categories of consumers, business-to-business and business to consumer in all market conditions.”
Sales in the Europe, Middle East and Africa region rose 1.8 percent to 269.1 million euros, representing 49.3 percent of the total. On a like-for-like basis, sales in the region rose 6.2 percent.
Revenues in the Americas fell 7.1 percent on a like-for-like basis (10.2 percent at current exchange rates) to 198.6 million euros, accounting for 36.4 percent of the total. “We saw a deep instability, and inflation and political issues affected consumer spending there, but our margins were in line with the previous year,” Curci said.
Sales in the Rest of the World area totaled 30.4 million euros, up 4.4. percent on 2023.
Sales in Asia grew 6.7 percent on a like-for-like basis (9.6 percent at current exchange rates) to 47.6 million euros, representing 8.7 percent of the total. “We continue to grow in Asia, and taking over our joint venture in China, rebuilding our presence there was very important. The same happened in Mexico and Russia, for example, being directly in charge is key for us,” Curci said.
In February last year, Marcolin inked an exclusive global licensing agreement with Christian Louboutin for the design, manufacture and distribution of the brand’s sunglasses and optical frames. The deal will run through 2029 and the label’s first eyewear collection will bow for spring 2025 to be distributed in a network of selected stores worldwide.
This was followed in May 2024 by the signing of an agreement with K-Way for the design, production and global distribution of sunglasses, prescription frames, ski masks and children’s glasses. The first collection bowed for spring 2025.
In 2023, Marcolin acquired independent eyewear brand Ic! Berlin GmbH. The brand, founded in Berlin in 1996, manages the design, prototyping and production of luxury sun and prescription frames internally. Two new showrooms for the brand opened in New York and London last year.
The goal of the acquisition for Marcolin is to increase its expertise in metal craftsmanship and to expand its portfolio of luxury brands, at the same time strengthening its commercial position in key regions such as Asia and Europe.
Web Eyewear is the other Marcolin proprietary brand, which is a segment that is considered strategic for the company.
Speculation has resurfaced about leading private equity firm PAI Partners looking to exit Marcolin. This would not be surprising since PAI Partners acquired a majority stake in Marcolin in 2012 — way beyond a fund’s usual exit time frame.
PAI is a “lucid, attentive and supportive partner,” said Curci, adding there were no updates at the moment.
Marcolin and Tom Ford‘s license dates back to 2005 and sources believe this could be a significant additional asset for a potential buyer, given the success of the American brand’s eyewear.
PAI Partners bought Marcolin, which was founded in 1961 and is based in Longarone, in Italy’s Veneto region known for being an eyewear manufacturing hub, from a number of investors who included the Marcolin family and brothers Diego and Andrea Della Valle, and delisted the company.
Fabrizio Curci
Last year Marcolin did not cut back on its investments in technology, processes, marketing and in its production, which have led to more efficiency, also in its spending, Curci said. “There is not one single element that has contributed to the growth, despite the complex and patchy scenario.”
Asked about investing in new medical and technological devices, Curci said he had “no doubt that will be the future. This is just the beginning, we are observing and working intensively on this segment, aiming for the formula that is the right one for us and for our size. We will be a part of it, it’s inevitable and also an opportunity, but there is no rush.” Sales of Marcolin’s optical and sun segments are balanced.
Curci said he plans “to stay the course in 2025, there is no need to change our strategy. The dynamics will not be different from 2024 and if certain geopolitical situations will cool off, including concerns about the tariffs, we hope there will be more consumer confidence, but we don’t think there will be an overnight spike in the market.” At the same time, he expressed confidence in the resilience of the high-end range of the market.
The executive said it is not the number of licenses that influences his decision-making but rather “a portfolio that allows us to sell in any area of the world. It may seem banal but it’s actually not. We need to manage a number of brands that is enough to cover our needs and our growth amibitons. We are well balanced and don’t need to add for the sake of adding. But of course we will evaluate no-brainer opportunities.”
Securing more perpetual licenses “depends on the brand,” Curci said. “I don’t think everything is valid for every brand. It’s easier for some brands to imagine them forever and there is also an issue of investment capacity.”
While there have been other examples, such as Safilo with David Beckham’s perpetual eyewear license, Curci said that, rather than a trend, “this is a new alternative or possibility that was not considered before and that now changes the relationship with a brand.”
As of Dec. 31, the net adjusted financial position amounted to 321.3 million euros, improving by 23 million euros compared with the end of December 2023.
