Sover has signed a 5-year agreement to produce sunglasses and prescription eyewear for Kiton, an Italian fashion brand located in Naples. The partners are hoping to generate €8 million in the first 3 years, subsequently followed by annual revenues subsequently of around €5 million. Precious materials such as gold will be used in the frames, which will justify high prices of between €350 and 1,000 a pair, but the majority of the styles will be for men.
This niche product will be sold through optical retailers and in Kiton's fashion stores - new openings planned for London and Hamburg will take their total number worldwide to 20, including locations in the USA, Japan and Russia. Sover already has joint ventures and subsidiaries for distribution purposes in Russia and various parts of Eastern Europe. The new license should help Sover to open the doors of the American market.
Sover closed 2006 with consolidated turnover up by 25 percent, topping the €22 million mark, and net profit of €1.5 million, equivalent to 6.8 percent of revenues. The major contribution to this result came from the branded line named after Alviero Martini, which has just renewed its licensing agreement with Sover for the next 4 years. Another more recent license, Mariella Burani, is growing steadily.