MILAN — Italian eyewear giant Luxottica Group SpA on Tuesday posted midsingle-digit growth in fourth-quarter and full-year sales after acquiring the Oakley brand last year.
Luxottica's revenues in the three months through December rose 7.1 percent to 1.19 billion euros, or $1.72 billion at average exchange. For the full year, sales climbed 6.2 percent to 4.97 billion euros, or $6.81 billion.
Both figures include 88 million euros, or $129 million, of Oakley's revenues in the last six weeks of 2007.
Luxottica acquired the Foothill Ranch, Calif.-based Oakley Inc. for $2 billion in June and completed the merger in November. Luxottica, which has licensing deals with brands including Bulgari, Chanel, Dolce & Gabbana, Prada, Ralph Lauren, Tiffany & Co. and Versace, also owns Ray-Ban.
Luxottica chief executive Andrea Guerra described 2007 as "another exceptional year for our group" after the company hit its sales target. He also said last year was "especially significant" following the Oakley acquisition and the overhaul of a quarter of Luxottica's nearly 6,000-strong retail network.
"Today, our vertical integration model is much more efficient, we are stronger in all of our markets and our brand portfolio is richer and even more well-balanced in all of our target customer segments," Guerra said in a statement.
Excluding Oakley, Luxottica's fourth-quarter wholesale revenues jumped 15.6 percent to 479 million euros, or $694 million. It made a similar leap for the full year, hitting almost 2 billion euros, or $2.74 billion, led by Ray-Ban's fifth consecutive year of double-digit sales growth, strong sales of luxury brands, and a 40 percent increase in business in emerging markets, Luxottica said.
Retail sales were dented by the economic downturn in the U.S., where Luxottica has the majority of its stores. Fourth-quarter retail revenues fell 7.2 percent to 714 million euros, or $1 billion, and were down 1.7 percent at stores open at least a year. Full-year retail sales slipped 1.8 percent to 3.23 billion euros, or $4.43 billion, although they were up 1.2 percent at stores open in 2006.
The retail numbers also exclude Oakley sales.
Luxottica released the sales figures after the close of the Italian stock market on Tuesday. The share price closed up 4.4 percent to 18.20 euros, or $26.70, although it has dropped by more than 16 percent since the beginning of the year.Luxottica is slated to report full-year results on March 13 and will provide a detailed outlook for fiscal year 2008 on Feb. 7.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
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Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast