MILAN — Italy’s Luxottica SpA, the world’s leading maker of eyewear, on Thursday said adjusted net profit in 2013 jumped 10.3 percent at current exchange, and said the board would suggest paying a 308 million euro, or $409.6 million, dividend to shareholders.
The payout would be equal to about 50 percent of Luxottica’s reported adjusted net income of 617.3 million euros, or $821 million — a result which, among other factors, followed strong sales growth in emerging markets and an excellent performance in the North American wholesale channel.
The dividend — 0.65 euros, or 87 cents, a share — will be payable in Italy on May 22, subject to the approval of shareholders at the April 29 general meeting. In the U.S., where Luxottica is also listed on the New York Stock Exchange, the dividend will be payable — in U.S. dollars — on May 30, the company said.
In a statement released after the close of trading in Milan, Luxottica said it had achieved the “best results ever” last year with more than 1 billion euros, or $1.33 billion, in operating income and more than 600 million euros, or $798 million, in adjusted net income.
Full year sales — already reported on Jan. 28 — reached 7.3 billion euros, or $9.7 billion, up 3.2 percent (at current exchange) on the year earlier.
Dollar amounts have been converted at average exchange for the periods to which they refer.
The company said the adjustment to its income relates to a 2007 tax audit by Italian tax authorities “that has ended with a determination relating to transfer pricing involving increased charges of 26.7 million [euros],” or $36.6 million at Thursday’s exchange rates. Luxottica said it had also set aside some 40 million euros, or $54.8 million, in nonrecurring accrual “relating to open tax audits for the tax years after 2007.” The adjustment also includes items such as nonrecurring costs related to the reorganization of Alain Mikli International, acquired by Luxottica in January 2013.
Total operating income was up 14.4 percent in the year, to 1.1 billion euros, or $1.46 billion.
The company was upbeat concerning its prospects for the current year. Chief executive officer Andrea Guerra said, “We believe that 2014 will be a natural evolution of the year that has just ended. The early months are delivering positive results despite some bad weather and we believe they will set the stage for sales growth and profitability consistent with prior years.”
Guerra pointed to the company’s “increasingly strong” brand portfolio as a driver of future growth, with “Ray-Ban continuing to be a global leader in its category and Oakley reporting excellent results in Europe and emerging markets.”
The company said that both the wholesale and retail divisions continued to grow in the premium segment in North America, while Sunglass Hut “continues its expansion globally and in new channels, strengthening its role of sunglass category captain.”
Given the strong performance in emerging markets, Luxottica — which owns brands including Ray-Ban, Oakley, Oliver Peoples and Persol, and produces under license for top names including Giorgio Armani, Coach, Prada and Ralph Lauren — said its goal is to “enhance our local presence in Brazil, China, India, Mexico and Turkey.”
In its previous sales statement on Jan. 28, the company had said that revenues in emerging markets in 2013 grew by more than 20 percent at constant exchange rates, “with peaks of excellence in China, Brazil and Turkey.”
Both wholesale and retail divisions reported higher operating income for the full year. At the wholesale level, adjusted operating income increased 8.9 percent to 658 million euros, or $875.1 million, while at the retail division, adjusted operating income increased 1.9 percent to 586 million euros, or $779.4 million.
However, both divisions were impacted by currency shifts in the fourth quarter.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews