Del Vecchio: ''2003 is a year of transition, next year will be better''
'For Luxottica 2003 will be a year of transition because of the uncertain worldwide economic situation and a weak dollar. We predict that 2004 will be better, thanks to a general increase in consumption and the acquisitions we are finalizing'. This was what Luxottica's president, Leonardo Del Vecchio, had to say about the current market situation after the shareholders' meeting which yesterday approved the 2002 financial statement of the world's leading eyewear production group.
According to Del Vecchio, by the end of this year sales at world level will have dropped by 6-7% compared to the last financial year, also because of the effect of the termination of the Armani contract. The stylist has left Luxottica's board of directors but, for the moment at least, he remains a shareholder in the group with 5.02% of the capital.
Del Vecchio underscored that «after 14 years of being in line, the stylist's strategies no longer corresponded to Luxottica's and at a certain point they differed about the future of the company». The president of the group explained that when this contract ended «we signed up with Versace and we are finalizing with another two brands». However, he did not want to make any comment on the possibility of Armani deciding to sell his shares in Luxottica.
About possible acquisitions, Del Vecchio added that the group «has several negotiations underway and we hope that we'll be able to make an announcement soon». The growth of external lines is part of Luxottica's strategy which, the president went on, «has continued with transactions since '95. We are finalizing the latest acquisition in Australia. Apart from this, we're still interested in new brands and new chains of stores». However, the group is not interested in acquiring Versace. «We have a 20-year eyewear license contract with Versace», concluded Del Vecchio, «what will happen within the company basically does not concern us».
The meeting of Luxottica's shareholders approved the admission of new board members Sabina Grossi, Enrico Cavatorta and Mario Cattaneo. The directors of the new board, which will remain in office until 2005, have increased from seven to nine. Yesterday's meeting also approved the distribution of a 0.21 euro dividend per share to be paid on July 3.
