+19.3 net profit for Luxottica
Luxottica Group S.p.A.(MTA: LUX; NYSE: LUX), a world leader in the sector of eyewear, today announces its consolidated results for the third quarter and the first nine months of 2006, according to the U.S. GAAP accounting principles.
The results reflect the transfer of Things Remembered, which was concluded on 30 September and recorded according to the U.S. GAAP accounting principles as a 'discontinued operation'. On the basis of these accounting principles the results of Things Remembered for the third quarter and the first nine months of 2005 and 2006 are not included in the Group's operating results announced today.
Third quarter 2006
Billing: €1,120.4 million (+9.8%, +13.8% at par of exchange)
- Retail billing: €838.6 million (+4.8%); sales at par of stores, exchanges and consolidation perimeter2: +6.0%
- Wholesale billing: €359.5 million (+26.7%)
Operating profit: €186.5 million (+20.5%); operating margin: 16.6%
- Retail operating profit: €112.6 million (+8.8%); retail operating margin: 13.4%
- Wholesale operating profit: €88.0 million (+39.1%); wholesale operating margin: 24.5%
Net profit (continuing operation): €107.0 million (+19.3%); net margin: 9.6%
Equity per share or ADS: €0.24 (US$0.30 per ADS)
First nine months 2006
Billing: €3,565.6 million (+15.1%)
- Retail billing: €2,525.0 million (+10.0%); sales at par of stores, exchanges and consolidation perimeter2: +7.0%
- Wholesale sales billing: €1,301.5 million (+33.0%)
Operating profit: €591.1 million (+30.7%); operating margin: 16.6%
- Retail operating profit: €345.5 million (+25.7%); retail operating margin: 13.7%
- Wholesale operating profit: €341.6 million (+47.7%); wholesale operating margin: 26.2%
Net profit (continuing operation): €330.0 million (+29.6%); net margin: 9.3%
Equity per share or ADS: €0,73 (US$0.91 per ADS)
Andrea Guerra, the Managing Director of the Luxottica Group, commented: 'After nine months of excellent results, our business today has been significantly strengthened, marking another year of strong growth, both in wholesale and retail. In the light of this performance today we can confirm our expectations for the year 2006 to reach an equity per share of between €0.93 and €0.94, a 28% increase compared to the results of the year in 2005 without Things Remembered. In relation to this, we should point out that our year-end results will not include the approximately €0,03 of equity per share, which had been generated in the past by Things Remembered every year'.
'The generation of cash was one of the main aspects of the Group's results, with a free cash flow equal to €129 million in the quarter.'
The results for the third quarter were extremely positive in all geographical areas, both for the wholesale and retail business. The Group is continuing to grow with higher rates than those for the whole sector, gaining further shares in the main markets, as well as greater visibility and increased penetration by the fashion and luxury brands. This growth also means increased profitability, with a raise in the operating margin from 15.2% to 16.6%.
The quarter closed once again with record results for wholesale, with sales to third parties - which is particularly important in assessing the wholesale business trend - increasing by 27.8% and the operating margin rising from 22.3% to 24.5%, in line with the Group's all-time peaks. The principal drivers of this performance were, once again, Ray-Ban's outstanding results, and the strength and increasing penetration of the Group's fashion and luxury brands - first and foremost Bvlgari,Chanel , Dolce & Gabbana, Prada e Versace.
As for the retail sector, this division also ended another quarter registering excellent results, especially in North America. LensCrafters closed the quarter again above average, while sales at par of Sunglass Hut stores grew by over 6.0%. Likewise Pearle Vision closed the first twelve consecutive months of growth with sales at par of stores on the increase. In Asia and the Pacific, vision business registered a positive quarter. Overall, the Group's retail operating margin grew to 13.4% in the quarter and to 13.7% in the nine months.
The Group's results include the economic impact of the stock option equaling approximately €7.7 million in the quarter and €28.7 million in the first nine months of the year, compared to approximately €5.8 and €12.4 million in the same periods in 2005.
On 30 September 2006 the Group's net financial standing was equal to €1,299.8 million.
The Luxottica Group's consolidated results for the third quarter and for the first nine months of 2006 were approved by the Board of Directors.
