MILAN — Luxottica Group SpA enters its 50th year coming off strong growth in all markets in 2010 and a 34.6 percent gain in net profits.
The Italian eyewear maker posted net profits of 402.2 million euros, or $530.9 million, in the 12 months ended Dec. 31, compared with 299.1 million euros, or $415.7 million, the previous year. Sales rose 13.8 percent to 5.8 billion euros, or $7.6 billion, a record for the company.
“We are particularly satisfied with these results, obtained in a context in which only truly extraordinary companies and brands enjoy success,” said chief executive officer Andrea Guerra. “2011 is a particularly important year for Luxottica, as it is the 50th anniversary since our founding. Celebrating 50 years of Luxottica is an extraordinary event since we are enjoying enormous success after only one generation and, above all, we have shown that at the heart of our DNA are growth and innovation.”
Dollar figures were converted from the euro at average exchange for the periods to which they refer. The company said the adjusted data exclude the effect of impairment charges related to assets in the Australian region, and the release of a provision for taxes related to the sale of the Things Remembered retail chain in September 2006.
Guerra pointed to an investment of 3 billion euros, or $4.1 billion at current exchange, over the past four years to build the firm’s brand portfolio and stores.
“I believe that 2011 will prove to be the natural evolution of 2010 and a year filled with great success for the group. There are many great opportunities to ensure solid growth for Luxottica, both in emerging and more mature markets,” said Guerra, noting further growth in the first two months of the year.
Based on the performance in 2010, Guerra said Luxottica expects its premium brands to post double-digit growth in 2011 and the company is “in an ideal position to continue throughout 2011 with solid, stable growth in net sales and a more than proportionate increase in profitability” leveraging on further development in emerging markets, the global expansion of Sunglass Hut, growth in the U.S. and the potential of Oakley.