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: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over the top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty