Luxottica Reported that consolidated net sales for the second quarter improved by 13.7% to 803.5 million . Consolidated operating income for the quarter improved year-over-year by 24.3% to 139.1 million. Consequently, consolidated operating margin for the quarter rose to 17.3%, from 15.8% for the same quarter last year. Consolidated net income for the quarter improved year-over-year by 16.7% to 79.0 million. Consequently, consolidated net margin for the quarter was 9.8%.
Earnings per share or per American Depositary Share for the quarter were 0.18. (21 cents).
Consolidated net sales for the six-month period improved year-over-year by 10.8 percent to euro 1,563.9 million. Consolidated operating income for the period improved year-over-year by 16.1 percent to euro 259.2 million. Consequently, consolidated operating margin was 16.6 percent, compared with 15.8 percent for the comparable six-month period last year.
Consolidated net income for the period improved year-over-year by 12.7 percent to euro 150.1 million. Consequently, consolidated net margin was 9.6 percent. Earnings per share or per American Depositary Share for the period were euro 0.34. In U.S. Dollars, earnings per ADS (EPADS) for the quarter were US$ 0.41.
Consolidated net outstanding debt as of June 30, 2004, was
euro 1,401.0 million compared with euro 1,470.4 million as of December 31, 2003. This reflected an improvement of euro 69.4 million, due to positive cash flow generation for the six-month period and notwithstanding the payment during the period of euro 95.5 million in cash dividends for fiscal year 2003.
Leonardo Del Vecchio, chairman of Luxottica Group, commented: “We are pleased with the year-to-date performance of our retail and, in particular, wholesale operations. In fact, assuming constant exchange rates, consolidated sales for the first half of the year would have risen by 17.3 percent. Consequently, we are now comfortable raising our earnings forecast for the full year to earnings per share (EPS) of euro 0.65, or EPADS of US$ 0.81. At the same time, our expectations continues to be for a Euro/U.S. Dollars exchange rate of euro 1.00 = US$ 1.25.”
The Group's manufacturing/wholesale sales for the six-month period improved year-over-year by 6.6 percent to euro 611.0 million. Manufacturing/wholesale operating income for the period rose by 11.5 percent to euro 140.5 million, reflecting an operating margin of 23.0 percent. Operating margin for the first half of 2003 was 22.0 percent.
Mr. Del Vecchio, commenting on the results of the manufacturing/wholesale division, continued: “Results of our wholesale division continued to reflect the overall positive momentum of our operations. In particular, for the first half of the year, wholesale sales to third parties are showing growth rates of nearly ten percent, reflecting the strong performance of our house brands, Ray-Ban above all, as well as of the other fashion brands in our portfolio. In addition, profitability levels at the division improved, as the result of greater economies of scale at the production and distribution level, particularly during the second quarter.”
Retail sales for the six-month period improved year-over-year by 11.3 percent to euro 1,046.6 million. Same store sales for the period improved year-over-year by 4.2 percent(2).
Retail operating income for the first half of the year rose by 17.7 percent to euro 143.5 million, resulting in an operating margin of 13.7 percent.
Same store sales for the second quarter improved year-over-year by 4.1 percent.
Mr. Del Vecchio concluded: “The results of our retail division in the U.S. mirror the trend we are seeing on the wholesale front: our premium brand strategy is paying off even in an increasingly competitive environment. This allowed us to generate positive sales and operating income growth, behind our core strengths of quality, fashionable products and exceptional customer service.”
The Board of Luxottica Group today appointed Andrea Guerra, 39, chief executive officer. Mr. Guerra also joins the Board, replacing a departing director.
Roberto Chemello, 50, formerly chief executive officer of Luxottica Group, will remain on the Board as a director. Mr. Chemello is also chief executive officer of Luxottica S.r.l., a subsidiary of Luxottica Group.
Finally, the Board called the Group's Ordinary and Extraordinary Shareholders' Meeting for September 14, 2004, on first call, and for September 16, on second call. At the Meeting, the Board will submit to shareholders for approval the addition of three directors to the Board, for a total of 12, as already provided in the Group's By-laws. The Board will also propose the reappointment of Sabina Grossi, 39, as well as the appointment of Sergio Erede, 64, and Gianni Mion, 59, as non-executive directors. Shareholders will also have to confirm the appointment of Mr. Guerra to the Board and the new corporate governance model resulting from the resolutions of the Meeting.
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE THREE-MONTH PERIODS ENDED
JUNE 30, 2004, AND JUNE 30, 2003KEY FIGURES IN THOUSANDS OF EURO (4)
2004 2003 % ChangeNET SALES 803,537 706,955 13.7%
NET INCOME 78,968 67,669 16.7%
EARNINGS PER SHARE (ADS) (2) 0.18 0.15
FULLY DILUTED EARNINGS PER SHARE (ADS) (3) 0.18 0.15
KEY FIGURES IN THOUSANDS OF U.S. DOLLARS (1) (4)
2004 2003 % ChangeNET SALES 967,941 803,949 20.4%
NET INCOME 95,125 76,953 23.6%
EARNINGS PER SHARE (ADS) (2) 0.21 0.17
FULLY DILUTED EARNINGS PER SHARE (ADS) (3) 0.21 0.17
Notes: 2004 2003
(1) Average exchange rate
(in U.S. Dollars per Euro) 1.2046 1.1372
(2) Weighted average number
of outstanding shares 448,141,852 447,856,544
(3) Fully diluted average
number of shares 450,035,449 448,977,360
(4) Except earnings per share (ADS),
which are expressed in Euro and U.S. Dollars, respectivelyLUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE SIX-MONTH PERIODS ENDED
JUNE 30, 2004, AND JUNE 30, 2003KEY FIGURES IN THOUSANDS OF EURO (4)
2004 2003 % ChangeNET SALES 1,563,934 1,411,502 10.8%
NET INCOME 150,143 133,283 12.7%
EARNINGS PER SHARE (ADS) (2) 0.34 0.30
FULLY DILUTED EARNINGS PER SHARE (ADS) (3) 0.33 0.30
KEY FIGURES IN THOUSANDS OF U.S. DOLLARS (1) (4)
2004 2003 % ChangeNET SALES 1,919,416 1,559,569 23.1%
NET INCOME 184,271 147,264 25.1%
EARNINGS PER SHARE (ADS) (2) 0.41 0.33
FULLY DILUTED EARNINGS PER SHARE (ADS) (3) 0.41 0.33
LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE THREE-MONTH PERIODS ENDED
JUNE 30, 2004, AND JUNE 30, 2003In thousands of Euro (1) 2004 2003 % Change
NET SALES 803,537 706,955 13.7%
COST OF SALES (247,174) (225,084)
GROSS PROFIT 556,363 481,872 15.5%
OPERATING EXPENSES:
SELLING EXPENSES (262,352) (240,865)
ROYALTIES (13,997) (11,765)
ADVERTISING EXPENSES (59,534) (48,883)
GENERAL AND ADMINISTRATIVE EXPENSES (70,618) (59,763)
TRADEMARK AMORTIZATION (10,736) (8,701)
TOTAL (417,237) (369,979)
OPERATING INCOME 139,127 111,893 24.3%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES (12,298) (11,015)
INTEREST INCOME 799 1,507
OTHER - NET (2,779) (2,958)
OTHER INCOME (EXPENSES) NET (14,278) (12,466)
INCOME BEFORE PROVISION FOR INCOME TAXES 124,849 99,427 25.6%
PROVISION FOR INCOME TAXES (43,652) (29,930)
INCOME BEFORE MINORITY INTEREST IN
INCOME OF CONSOLIDATED SUBSIDIARIES 81,197 69,497
MINORITY INTEREST IN INCOME
OF CONSOLIDATED SUBSIDIARIES (2,229) (1,828)
NET INCOME 78,968 67,669 16.7%
EARNINGS PER SHARE (ADS) (1) 0.18 0.15
FULLY DILUTED EARNINGS PER SHARE (ADS) (1) 0.18 0.15WEIGHTED AVERAGE NUMBER
OF OUTSTANDING SHARES 448,141,852 447,856,544
FULLY DILUTED AVERAGE NUMBER OF SHARES 450,035,449 448,977,360Notes :
(1) Except earnings per share (ADS), which are expressed in Euro
