Luxottica: the next acquisition is not necessarily Cole National

'We forecast net profits of 270 million, it doesn't seem to me to be a negative result': in an article published in today's Panorama, this was how Leonardo Del Vecchio replied to comments about Luxottica's trend for 2003.

'Certainly' he added 'it has been a difficult year: Luxottica's consolidated billings (2.1 billion for the first nine months of 2003) are at 70% in dollars, the strong euro hasn't helped us: with the same exchange rate the downturn would only have been 3% and not 15. But data for the third quarter confirm a recovery on the Us market. And the loss of the license to produce Armani eyewear will be compensated by the two licenses acquired this year, Versace and Prada. So I can say that our growth in 2004 will be around 15 per cent.'

If to date Luxottica has managed to maintain two-figure net profits and has never had a cash flow crisis, despite continuing to buy brands and chains/companies, it is only because it never pays 'more than double the billings and six and a half times the operating profit. 'Otherwise' Del Vecchio said 'it would take more than my sons and I to recover the investment'.

And it's a logic that Luxottica will continue to pursue for its next acquisitions: for over a month rumors have been circulating about the possible acquisition of Cole National, but this might not be the company they have their sights on. 'Any chain that is able to generate profits is targeted' Del Vecchio concluded. 'If the choice should be for an American company, it will be dictated by the fact that large-scale distribution was born there, so it's easier to find.'