MILAN — Italian eyewear giant Luxottica Group SpA cut its earnings-per-share forecast by more than 13.5 percent Tuesday after net profits fell for the third straight quarter.
Luxottica, which has licenses with Chanel, Dolce & Gabbana, Prada and Versace, among others, revised down 2008 EPS to between 0.96 euros, or $1.20 at current exchange, and 0.98 euros, or $1.23, from a previous guidance of between 1.11 euros, or $1.39, to 1.14 euros, or $1.43.
Net profits for the three months through Sept. 30 fell 7 percent to 104.6 million euros, or $157.6 million at average exchange, which the company attributed to unfavorable exchange rates and higher financial charges after last November’s acquisition of the Oakley brand.
Revenues for the period gained 5.3 percent to 1.21 billion, or $1.82 billion, boosted by sales of Oakley frames, “good results” at wholesale in continental Europe and “marked growth” in Brazil, India and Southeast Asia, the company said. That helped offset the slowdown in consumer spending in North America, which accounts for more than two-thirds of Luxottica’s turnover. At constant exchange, revenues were up 12.8 percent.
“We are in a particularly difficult year,” Luxottica Group chief executive officer Andrea Guerra said. “However, I am satisfied with how Luxottica reacted…[and] I am convinced that Luxottica’s increasingly solid foundation puts us in the best possible position to handle a situation as demanding as the one that is presented to us.”
Pro forma net sales, which include Oakley as if it had been acquired at the start of last year, dropped 2.7 percent at constant exchange, hurt by a dip in demand for designer frames and a slowdown in “certain” Mediterranean countries of Europe and in Japan, the company said.
As of Sept. 30., net debt stood at 2.91 billion euros, or $3.64 billion at current exchange, from 2.84 billion euros, or $3.56 billion, at the end of June.
None of the group’s credit facilities require refinancing in the coming months, and maturities until 2011 may largely be covered by the group’s cash generation, the company said.
Luxottica said pro forma operating margins should improve in the fourth quarter when compared with the same period last year and that it expected cash flows for the full year to reach 360 million euros, or $450.6 million, to 380 million euros, or $475.7 million.
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion
@longchamp, which marks its 70th anniversary this year, just opened its biggest U.S. store on Manhattan’s Fifth Avenue. On the lower level there’s a floor-to-ceiling display of the brand’s iconic Le Pliage bag – in all of its different colors, shapes and sizes. Customers can also have their product personalized in-store by imprinting names, initials or emblems. #wwdfashion (📷: @ericmtownsend)
“Whenever I’m in that place of sound and music, I don’t have fear or nervousness…This album has a lot of themes of courage and boldness and I want to be the soundtrack for people’s lives. I’ll be so happy if [my songs] evoke strength in people, which I know music has done for me,” says @kimbramusic of her newest album “Primal Heart.” The New Zealand-born singer sat down with WWD to talk about her music, newest tour and connecting with hear fans — read more on WWD.com #wwdeye (📷: @jilliansollazzo)
Luxury handbag resale company @rebagofficial is planning to sell a rare collectible for $70,000: the @hermes White Crocodile Himalayan Birkin. The exclusive Birkin sold for about $100,000 in 2008, when @davidbeckham bought one for his wife @victoriabeckham to add to her collection. Read more about the rare Birkin on WWD.com #wwdaccessories
With her costume pearl necklace and what-you-see-is-what-you-get style, Barbara Bush, who died Tuesday at age 92, was a straight-shooter from start to finish.
Born Barbara Pierce in New York City, Bush served as the 37th first lady, as well as the country’s second lady from 1981 to 1989. In addition to being part of the longest presidential marriage — 73 years — Bush also had the unlikely distinction of having one son, George W., become the 43rd president and another son, Jeb, run unsuccessfully in 2016. Having served as second lady during the Reagan administration’s two terms and lived all over the world during her own husband’s ascending political career, Barbara Bush made it clear that literacy — not fashion — was her priority. Read more from Rosemary Feitelberg’s obituary on the late First Lady in WWD.com, link in bio. #barbarabush #wwdnews
Western and ’90s trends have influenced denim for fall 2018. Think raw, dark and coated jeans mixed with bold prints and tough leather. #trendtuesdays #wwdfashion (Styled by @thealexbadia;📷: @ryanplett)