Premium sunglass brand Oakley continued to grow at double digit rates in 2009, according to Italy’s Luxottica Group, S.p.A., which reported sales declined 6.4% in the quarter ended Dec. 31, 2009.
The company said Oakley, which it acquired in 2007, will be a cornerstone of growth again in 2010 when the company will ramp up spending to support the brand in Europe. It also expects to complete the integration of the brand into its Brazil operations this year and build the brand’s position in the optical prescription business.
The other three growth drivers for the company in 2010 will be further expansion in emerging markets, growth in the United States and flexibility with a steady focus on the strength of the balance sheet and cash flow generation.
CONSOLIDATED INCOME STATEMENT
FOR THE THREE-MONTH PERIODS ENDED
In thousands of % of % of
Euro (1) 4Q 09 sales 4Q 08(2) sales % Change
NET SALES 1,157,085 100.0% 1,236,476 100.0% -6.4%
COST OF SALES (412,885) (437,924)
GROSS PROFIT 744,201 64.3% 798,552 64.6% -6.8%
OPERATING EXPENSES:
SELLING EXPENSES (412,938) (439,900)
ROYALTIES (26,114) (24,346)
ADVERTISING EXPENSES (66,342) (69,220)
GENERAL AND
ADMINISTRATIVE
EXPENSES (142,531) (128,604)
TRADEMARK
AMORTIZATION (19,391) (19,034)
TOTAL (667,316) (681,104)
OPERATING INCOME 76,885 6.6% 117,448 9.5% -34.5%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES (22,305) (35,252)
INTEREST INCOME 2,565 3,384
OTHER – NET (2,345) (33,780)
OTHER INCOME
(EXPENSES)-NET (22,085) (65,648)
INCOME BEFORE
PROVISION FOR
INCOME TAXES 54,800 4.7% 51,800 4.2% 5.8%
PROVISION FOR
INCOME TAXES (18,091) (10,368)
NET INCOME 36,709 41,432
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTEREST (1,128) (2,607)
NET INCOME
ATTRIBUTABLE TO
LUXOTTICA GROUP
SHAREHOLDERS 35,581 3.1% 38,825 3.1% -8.4%
BASIC EARNINGS PER
SHARE (ADS): 0.08 0.08
FULLY DILUTED
EARNINGS PER
SHARE (ADS): 0.08 0.08
