MILAN — Boosted by a “prolonged” sun season, surging sales in emerging markets and in the U.S., a positive performance both at retail and wholesale, and despite the depreciation of the dollar against the euro, Luxottica Group SpA posted 9.1 percent growth in net profits in the third quarter to 111.2 million euros, or $150.1 million, compared with the same period last year.
This story first appeared in the October 25, 2011 issue of WWD. Subscribe Today.
Adjusted net profit climbed 4.1 percent to 106.1 million euros, or $143.2 million. Adjusted figures do not include an extraordinary gain of about 21 million euros, or $28.3 million, related to the acquisition of the 40 percent stake in Multiopticas Internacional; nonrecurring costs related to Luxottica’s 50th anniversary celebrations of about 12 million euros, or $16.2 million, and nonrecurring restructuring and start-up costs in the retail division of approximately 11.8 million euros, or $16 million.
In the three-month period ended Sept. 30, sales rose 4 percent to 1.52 billion euros, or $2.05 billion.
At constant exchange rates, sales would have grown 10 percent. Dollar figures were converted at average exchange rates for the periods to which they refer.
Luxottica, which held its 50th anniversary celebrations in the period, owns the Oakley and Ray-Ban labels, and holds eyewear licenses with brands including Bulgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada, Salvatore Ferragamo, Tiffany and Versace. Last year, the company inked an agreement with Coach that will start in January.
The Italian eyewear maker trumpeted the performance of Ray-Ban and Oakley, defined as “exceptional,” and of luxury brands Burberry, Tiffany and Ralph Lauren.
Chief executive officer Andrea Guerra cited solid sales growth across the board, including a 7.8 percent gain in North America in U.S. dollars in the quarter, and jumps in India, China Brazil, Italy, South East Asia and Latin America, where retail chain GMO joined Luxottica’s organization.
The retail chain Sunglass Hut also continued to grow strongly, with sales increasing by more than 15 percent during the quarter. The company said the Australian and Chinese retail businesses also performed very well in the third quarter.