De Rigo Posted Net Sales of EUR 139.9 m in the Quarter Ending March 31, 2003
De Rigo S.p.A. posted net sales of EUR 139.9 m in the quarter ending March 31, 2003, a 2.0% decrease as compared with the same period last year. Foreign currency translation differences, primarily related to the translation into Euro of sales made in Pounds Sterling and Japanese Yen, reduced the Group's sales for the period in Euro terms by 4.2%. Consolidated net sales excluding the effect of foreign currency translation differences therefore increased by 2.2%, notwithstanding the generally weak market for eyewear.
The Group's consolidated net sales of EUR 139.9 m for the first quarter of 2003 were broken down as follows: eyewear sales of EUR 70.9 m, lens sales of EUR 37.6 m, contact lens sales of EUR 18.7 m, and other sales and revenues of EUR 12.7 m, as compared with sales of EUR 72.5 m, EUR 38.3 m, EUR 18.4 m and EUR 13.6 m, respectively, for the first quarter last year.
Foreign currency translation differences had a negative effect of 4.2% on consolidated net sales and were primarily related to the translation into Euro of sales made in Pounds Sterling and Japanese Yen, as the average exchange rates for these currencies during the first quarter of 2003 were less favourable than those during the same period last year.
Analysing consolidated net sales by geographic area, net sales in Europe decreased by 4.2% to EUR 124.1 m, primarily reflecting the strengthening of the Euro against the Pound Sterling and weak demand in certain markets, particularly in Italy. Net sales in the Americas decreased by 20.0% to EUR 3.2 m, primarily due to lower unit sales by the Group's wholesale & manufacturing division. Net sales in the Rest of the World increased by 36.5% to EUR 12.6 m, primarily as a result of increased unit sales in the Far East region, notwithstanding the unfavourable trend in Japanese Yen exchange rates.
The Group's consolidated net sales of EUR 139.9 m for the first quarter of 2003 were broken down as follows: eyewear sales of EUR 70.9 m, lens sales of EUR 37.6 m, contact lens sales of EUR 18.7 m, and other sales and revenues of EUR 12.7 m, as compared with sales of EUR 72.5 m, EUR 38.3 m, EUR 18.4 m and EUR 13.6 m, respectively, for the first quarter last year.
Foreign currency translation differences had a negative effect of 4.2% on consolidated net sales and were primarily related to the translation into Euro of sales made in Pounds Sterling and Japanese Yen, as the average exchange rates for these currencies during the first quarter of 2003 were less favourable than those during the same period last year.
Analysing consolidated net sales by geographic area, net sales in Europe decreased by 4.2% to EUR 124.1 m, primarily reflecting the strengthening of the Euro against the Pound Sterling and weak demand in certain markets, particularly in Italy. Net sales in the Americas decreased by 20.0% to EUR 3.2 m, primarily due to lower unit sales by the Group's wholesale & manufacturing division. Net sales in the Rest of the World increased by 36.5% to EUR 12.6 m, primarily as a result of increased unit sales in the Far East region, notwithstanding the unfavourable trend in Japanese Yen exchange rates.
The decrease in wholesale & manufacturing sales was primarily due to a decline of unit sales in certain European markets, primarily in Italy, as well as seasonal effects, as sales in some European markets that had taken place in the first quarter of 2002 were delayed until the second quarter this year.
The weakness in certain European and American markets was partially counterbalanced by strong growth in the Rest of the World area, in which the division posted a 53.5% sales increase that was driven by very good results in the Far East that were primarily attributable to higher sales of the Group's luxury/designer brands.
Net sales through retail companies amounted to EUR 94.5 m, an increase of 0.1% as compared with sales of EUR 94.4 m in the same period last year.
Net sales of Dollond & Aitchison ('D&A'), the Group's British retail chain, grew by 8.2% in Pound Sterling terms. In Euro terms, D&A's net sales totalled EUR 61.8 m, a decrease of 0.6%, as compared with sales of EUR 62.2 m posted in the same period last year, reflecting the decline in the value of the Pound Sterling against the Euro.
Management believes that the increase in net sales at D&A in Sterling terms was particularly satisfactory, as it was achieved in a British market that was characterized by an overall reduction in demand. This success was primarily due to D&A's aggressive marketing activity and substantial improvements in level of service provided by the lens plants sold to BBGR, following completion of their restructuring process. At March 31, 2003, D&A operated a network of 233 owned shops and 145 franchised shops.
General Optica ('GO'), the Group's Spanish retail company, reported net sales of EUR 32.7 m, an increase of 1.6% as compared to net sales of EUR 32.2 m last year. The 1.6% increase was achieved on top of a 13.4% net sales increase posted in the first quarter last year. Management believes that the company has continued to gain market share in a generally flat Spanish market and expects that this trend will continue throughout the year as GO continues to implement its expansion plan. At 31 March 2003, GO operated a network of 140 owned shops and 7 franchised shops.
Total unit sales at EID continued to grow, increasing by 19.8% as compared with the first quarter of 2002, while net sales increased by 1.2% to EUR 8.7 m from EUR 8.6 m posted in the first quarter of 2002. The increase is particularly notable given that fact that the results for the first quarter of 2002 represented an increase of 41% compared with the same period of 2001.
The increase in volumes sold continues to reflect the impact of EID's new distribution organization, which is primarily focused on sales agents in Europe and independent distributors outside of Europe. The implementation of the new distribution organization began during the second quarter of 2002. The new structure resulted in a decline in the unit's average prices as the percentage of sales made through independent distributors increased: as a result of these factors net sales increased, but at a slower pace than volumes.
