ROME — Luxottica Group SpA said Monday profits increased 8 percent in the second quarter, despite the U.S. dollar’s decline against the euro. Luxottica, whose largest single market by sales is the U.S., said despite currency pressures it’s “well on track” to reach its full-year objectives.
Luxottica, which owns the Ray-Ban and Oakley brands, said net income rose to 162.1 million euros, or $233.2 million, in the three months ended June 30, compared with profits of 150.1 million euros, or $191.5 million, in the same period a year earlier. Earnings per share rose to 0.35 euros, or 50 cents, from 0.33 euros, or 42 cents.
Luxottica said sales rose 2.4 percent to 1.63 billion euros, or $2.35 billion, compared with the prior-year period, helped by a healthy sun season and performance of its luxury license brands, citing Burberry, Chanel, Persol, Polo Ralph Lauren, Prada and Tiffany as top performers.
Eliminating currency fluctuation, sales were up 9.5 percent. Dollar figures have been converted from the euro at average exchange for the periods to which they refer.
Profit margin of its retail business fell to 14 percent from 14.5 percent a year earlier and net sales of its retail division slid 1.5 percent. The operating margin of its wholesale division, however, rose to 26.8 percent for the second quarter of 2011 from 24.1 percent in the second quarter of 2010.
Geographically, the company experienced rising sales in all regions worldwide.
“Despite the weakening of the U.S. dollar exchange rate, our net sales in U.S. dollars in the fundamental region of North America were strong, growing by 7.5 percent during the quarter,” said Andrea Guerra, chief executive officer.
Luxottica also said performance was excellent in Europe, the Middle East, South East Asia and Latin America, where it will continue to open new stores and expand its presence.
In April, the company said it planned to take control of Multiopticas Internacional in order to fuel its expansion plans in into Latin America. Multiopticas owns more than 470 eyewear stores selling prescription and fashion sunglasses in Chile, Peru, Ecuador and Colombia.
Comparable store sales from the group’s sun specialty chain Sunglass Hut were up 7.8 percent in the second quarter, lifted by the U.S. market.
Looking ahead, the company said it is confident about reaching its full-year targets. In March of this year, Luxottica said if sales grow in high-single digits throughout 2011, then earnings before interest and taxes and net profit will grow twice as fast as sales, at constant exchange rates.
“We strongly believe that these results provide an excellent basis for us to look with confidence to the second half of the year,” Guerra added.
During a company conference call, Guerra said July has been a “good month” and portfolio orders remain solid.
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)
Discovery is collaborating with British pop artist @philipcolbert on a new line of clothing and accessories called Discovery Shark. The collection, which will launch next summer for Shark Week’s 30th anniversary, features a whimsical line of women’s and men’s bomber jackets, sweatshirts, bags and more. #wwdfashion
“I’m always a big champion of a female rapper, and I’m glad to see a new voice that feels unique and authentic that’s coming up, and I think we’re going to see more great things from her,” said @itsjeremyscott about @iamcardib, who performed at @moschino’s Art Basel Miami Beach party last night. #wwdeye (📷: @lexieblacklock)
@janellemonae’s “What’s Your Frequency?” room in @refinery29's #29Rooms made its debut this week at the opening of the Los Angeles art exhibit. “It’s about the ongoing conversation around mass surveillance, the weaponization of technology and cultural uniformity. My space was created so that we can come together and talk about the complexities of our humanity,” said Monáe. #wwdeye (📷: @bucknerphoto)
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)