ITALY. Italian eyewear company Luxottica Group unveiled its strongest set of financial results ever in the second quarter of 2010, reaffirming its market-leading position.
For the first time in the history of the group, net sales for the quarter approached €1.6 billion, with net income reaching €150 million.
“We are particularly proud of the results achieved by Luxottica this quarter,” commented CEO Andrea Guerra. “We have successfully invested in the right markets and embarked on actions that are resulting in very positive results indeed. We have launched collections and special projects that have proven to be particularly well-received in the market and we have been able to achieve growth wherever we identified opportunities.”
He continued: “Our brand portfolio has once again proven to be our strength: Ray-Ban and Oakley continued to record double-digit percentage growth and our premium and luxury brands also had positive improvement. We should also mention the performance recorded in North America, a key region for Luxottica: despite the fact that the US consumer is still cautious, our sales in US dollars were up by +8%, rewarding the efforts made by our Wholesale Division, Sunglass Hut and LensCrafters, as well as the growing synergies we are developing between our divisions.”
In the second quarter, Luxottica achieved positive performances in most geographic regions. The Wholesale Division recorded its best sales performance in the group’s history. Emerging markets made a key contribution to this performance, boasting an increase in wholesale sales by approximately +30% compared to the same period last year, along with the US and Europe, which enjoyed a particularly positive “˜sun’ season, the company said.
The results posted by Sunglass Hut were also very solid, with net sales benefiting from the major store-opening plan within US department store Macy’s, allowing record sales to be recorded in June. Strong results were also posted by the two recently-opened flagship stores.
 |
Record results for the second quarter and first half of 2010 at Luxottica Group |
Consolidated results for Q2 and H1
In the second quarter of 2010, net sales rose by +13.8% at current exchange rates and by +6.5% at
constant exchange rates, to €1,595.1 million. During the half-year period, net sales rose by +10.1% to €2,986.8 million.
EBITDA grew over the previous year by +22.2% to €335.4 million for the second quarter. First-half EBITDA grew to €578.0 million from the €501.5 million posted for the first half of 2009.
Operating income was €258.3 million for the quarter, up +27.1%, while the operating margin improved from 14.5% in the second quarter of 2009 to 16.2% in the second quarter of 2010. First-half operating income amounted to €429.6 million, up +20.2%.
Net income for the second quarter climbed by +30.1% to €150.1 million.
Wholesale Division boosted by all group brands
The Wholesale Division’s results were buoyed by all group brands, with Ray-Ban and Oakley having stable double-digit growth, and the positive performance of its luxury brands (also up by double digits).
The division’s sales rose to €651.2 million in the second quarter (+13.2% at current exchange rates and +7.8% at constant exchange rates). Half-year net sales were €1,204.7 million, up +11.9% year-on-year (+8.4% at constant exchange rates).
In terms of sales performance in the main geographic areas, Luxottica saw positive results in emerging markets, particularly in Brazil, China, India, Korea and Eastern Europe.
Operating income for the Wholesale Division in the second quarter rose by +21.5% to €157.2 million.
Positive results at Sunglass Hut
Net sales for the Retail Division rose to €944.0 million in the second quarter (+14.3% at current exchange rates, +5.6% at constant exchange rates). Half-year net sales were €1,782.1 million, rising by +8.9% (+5.6 at constant exchange rates).
Sunglass Hut posted positive results in terms of margins, with overall comparable store sales up +4.6%, due
mainly to positive results achieved in the US (+5.5%) and the UK.
The division’s operating income grew by +19.4% to €136.6 million in the second quarter.
Advertisement |
