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Luxottica Net Rises 7.9% in Q3

Revenues reached 1.79 billion euros, or $2.36 billion, up 0.1 percent.

MILAN — Italian eyewear giant Luxottica SpA reported net profit in the third quarter grew by 7.9 percent to 148 million euros, or $195.4 million, reflecting what it said was an “excellent summer season in Europe.”

 

The company said revenues in the three-month period to Sept. 30 reached 1.79 billion euros, or $2.36 billion, up 0.1 percent from the year-earlier period and reflecting strong currency headwinds.

 

At constant exchange rates, third quarter sales would have been up 7.4 percent, the company said.

 

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Dollar amounts have been converted at average exchange rates for the periods to which they refer.

 

Luxottica — which owns brands including Ray Ban, Oakley, Oliver Peoples and Persol and produces under license for the likes of Giorgio Armani, Coach, Prada and Ralph Lauren — said wholesale revenues increased 6.1 percent to 686 million euros, or $905.5 million.

 

Chief executive Andrea Guerra said “Europe is in excellent shape with results exceeding expectations,” singling out Germany, France and the Nordic countries for “outstanding performance.”

 

At constant currency, sales grew 19 percent in Europe in the quarter, versus 20 percent in emerging markets and 2 percent in North America, where the recent U.S. federal government shutdown dented Oakley sales to the U.S. Army.

 

Net sales in the retail division were flat at 1.1 billion euros, or $1.45 billion. At constant exchange rates, the division’s revenues would have been up 4.2 percent, the company said.

 

Luxottica said that Sunglass Hut “continued its excellent growth trend, supported by a stronger penetration of the premium and luxury sun segment, by the development of new sales channels such as ecommerce and department store sales, and by its growing presence in the so-called gateways and megacities.”

 

Comparable store sales on a global basis increased by 7.5 percent at the unit, the company said.

 

Looking ahead to the end of the year, Luxottica told a conference call it expected “solid high single-digit sales growth” at Ray-Ban, “double-digit sales growth” at Oakley and “over” 160 million euros in sales from Armani collections, a key license the group won back from Italian rival eyewear maker Safilo Group SpA last year.