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.                            


                               LUXOTTICA GROUP         
                     
CONSOLIDATED INCOME STATEMENT                    
                            FOR THE THREE-MONTH PERIODS ENDED 

                   DECEMBER 31, 2009 AND DECEMBER 31, 2008              
                                                                           
      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