Luxottica Group S.p.A. has revised its earnings expectations for fiscal 2005. The company now expects to post earnings per share between euro 0.74 and euro 0.75, up from the previously announced EPS of between euro 0.68 and euro 0.70. This would reflect an expected improvement in net income over the previous year of between 16% and 18%.
Andrea Guerra, chief executive officer of Luxottica Group, commented: “With one full year of Cole National integration behind us and thanks to the improvements in profitability seen in our retail business in Asia Pacific, today we are comfortable raising our estimates for the current year.”
“After a strong first half of the year — both at the retail and wholesale level — we now look forward to a very positive final stretch. While remaining fully focused on execution in the short term, our teams around the world are already at work for a 2006 during which we expect to reap additional benefits, especially in terms of profitability, from the good work and many initiatives carried out this year.”
The improved forecast is now based on a euro 1 = US$1.26 average exchange rate for the full year. In U.S. Dollars, Luxottica Group currently expects to post EPS per ADS (EPADS) for fiscal year 2005 of between 93 cents and 94 cents.
Luxottica Group also announced that, in accordance with Italian Law, at a meeting held today its Board of Directors approved the Consolidated Financial Statements for the six-month period ended June 30, 2005, based for the first time on International Financial Reporting Standards (IFRS). The introduction of the IFRS did not result in any material differences with the results for the same period based on U.S. GAAP. The Group has already reported U.S. GAAP results for the six-month period on July 27, 2005, with net sales up by 38.1% to euro 2,183 million; operating income up by 16.6% to euro 302 million; and, net income up by 11.5% to euro 167 million.
