Luxottica Likes What it Sees

Luxottica Group S.p.A. (Milan) reported its consolidated net sales increased by 5.9 percent for the fourth quarter 2003 ending December 31.

In its retail sales division, sales increased by 13.1 percent.

For fiscal 2003, the company said, consolidated net sales declined by 11.2 percent but “assuming constant exchange rates, consolidated net sales for fiscal year 2003 would have risen by 1.4 percent.” Retail sales declined by 9.2 percent but again, “assuming constant exchange rates, sales would have increased by 6.7 percent.”

Chairman Leonardo Del Vecchio said of the company's retail performance: “Traditionally, one of the weakest quarters in our retail division, the fourth quarter was indeed satisfactory. Same-store sales actually increased by 2.9 percent with the first signs of economic improvement in North America, interrupting the negative trend begun in the fourth quarter of 2001. This positive result was also attributable to the good sales performance during the holiday season, especially at Sunglass Hut International. We expect this improving trend to continue into 2004.

“I am optimistic about 2004,” Del Vecchio continued, “especially because of the investments we made in 2003. We launched three new brands: Prada, Versace and Ray-Ban ophthalmic. We consolidated our market share in Australia through the acquisition of OPSM. [And] negotiations with Cole National led to the signing of a merger agreement, adding to the list of acquisitions made and self-financed in the past 10 years.”