LUXOTTICA NET UP 46.5% IN QUARTER
AGORDO, Italy — Luxottica Group SpA reported net income in the third quarter ended Sept. 30 rose 46.5 percent to $18.3 million (28.8 billion lire), as sales gained 21.4 percent to $114.1 million (179.3 billion lire).
Currency translations are those provided by Luxottica, based on average exchange rates during the periods involved.
In the year-ago quarter, the eyewear manufacturer reported net income of 19.6 billion lire and sales of 147.7 billion lire.
The latest third quarter is the first time Luxottica has incorporated into its results Brico Srl, a sports eyewear company based in Dormeletto, Italy. Luxottica acquired a majority stake in Brico in July.
In the nine months, Luxottica’s net income increased 31.2 percent to $55.6 million (90.1 billion lire), with sales up 22.6 percent to $367.7 million (595.3 billion lire). A year earlier, profits were 68.7 billion lire on sales of 485.4 billion lire.
Excluding Brico, sales rose 18.3 percent in the third quarter and 21.7 percent in the nine months.
In the U.S., nine-month sales rose 7 percent in dollar terms and 4.1 percent in units and accounted for 41 percent of total consolidated revenues. Italy and the rest of the world accounted for 18 percent and 41 percent respectively of consolidated sales.
Overall, designer frames accounted for 52.5 percent of total sales in the nine months. The firm noted that among operating expenses, royalties, connected with the company’s stable of licensed designer labels, were the only item to show a higher increase than sales. In the third quarter, royalties rose 25 percent and in the nine months they were up 37 percent.
In total, the firm sold over 9.4 million frames during the nine months, an increase of 15.4 percent.
The company also reported that on Jan. 1, 1995, it will start operating a distribution subsidiary in Mexico, which has been untapped territory. Leonardo Del Vecchio, chairman of Luxottica, said “great results” are expected.
— Fairchild News Service