Oct 29, 2014
Luxottica's stronger Q3 sales growth boosted by currencies
Oct 29, 2014
LONDON, United Kingdom - Sales at Italian luxury eyewear maker Luxottica grew faster in the third quarter than in the previous three months helped by a strong performance in emerging markets and more favourable currency effects.
The maker of Oakley and Ray Ban sunglasses is seeking to draw a line under two difficult months during which the company lost two successive chief executives, including 10-year veteran boss Andrea Guerra, who left after disagreements with founder and majority owner Leonardo Del Vecchio.
Luxottica said on Wednesday sales in the three months to September rose 5.5 percent from a year ago to 1.88 billion euros ($2.4 billion). The sales increase was hardly changed when factoring in exchange rate movements.
Analysts had looked for third-quarter revenues of 1.92 billion euros according to a Thomson Reuters SmartEstimate but Luxottica said an accounting change at its EyeMed unit had a negative 23 million euro impact on sales.
Earlier this year the strength of the euro took a toll on Luxottica, which reaps more than half its sales from the United States. Second-quarter net sales rose 2 percent although growth was more than three times that before currency effects.
Operating profit met expectations at 281 million euros in the third quarter, up 10 percent from a year earlier despite a 15 million euro payout to Guerra.
Luxottica said Massimo Vian, chief operating officer since 2010, had taken on all executive powers until becoming co-chief executive in January with veteran Procter & Gamble manager Adil Mehboob-Khan. Both joined the board of directors on Wednesday.
1 US dollar = 0.7846 euro
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