Luxottica Group ups outlook for FY 2005

Luxottica Group yesterday announced that it now expects to post earnings per share (EPS) for fiscal year 2005 of between € 0.74 and € 0.75, up from the previously announced EPS of between €0.68 and €0.70. This would reflect an expected improvement in net income over the previous year of between 16 percent and 18 percent.

Andrea Guerra, chief executive officer of Luxottica Group, commented: 'With one full year of Cole National integration behind us and thanks to the improvements in profitability seen in our retail business in Asia Pacific, today we are comfortable raising our estimates for the current year'.

Referring to the recent acquisition of the Xueliang Optical chain, Guerra also told Il Sole 24 Ore Radiocor that the company wants to increase its retail strength in China and is 'examining other opportunities', with the hope of concluding 'soon, by year end or maybe earlier'.

'After a strong first half of the year - both at the retail and wholesale level - we now look forward to a very positive final stretch. While remaining fully focused on execution in the short term, our teams around the world are already at work for a 2006 during which we expect to reap additional benefits, especially in terms of profitability, from the good work and many initiatives carried out this year'.

The improved forecast is now based on a €1 = US$1.26 average exchange rate for the full year. In U.S. Dollars, Luxottica Group currently expects to post EPS per ADS (EPADS) for fiscal year 2005 of between US$ 0.93 and US$ 0.94.

Luxottica Group also announced that, in accordance with Italian Law, at a meeting held today its Board of Directors approved the Consolidated Financial Statements for the six-month period ended June 30, 2005, based for the first time on International Financial Reporting Standards (IFRS). The introduction of the IFRS did not result in any material differences with the results for the same period based on U.S. GAAP. The Group has already reported U.S. GAAP results for the six-month period on July 27, 2005, with net sales up by 38.1 percent to € 2,183 million; operating income up by 16.6 percent to € 302 million; and, net income up by 11.5 percent to € 167 million.