13% growth in Luxottica revenues for 2006

Continuous two-figure growth for the third year running, the prospect of further improving performance in 2007 and of further continuing the program for opening new outlets, worldwide.

For Luxottica, the leader of the top segment of the eyewear sector (with 5,700 stores in North America, Asia-Pacific, China, Europe), the end of 2006 was also 'exceptional', according to chief executive Andrea Guerra. The figures seem to bear him out.

At 4,670.9 million, overall billings increased by 13% compared to the previous financial year. Specifically, the Group's greatest satisfaction came from the wholesale segment, which had revenues of 1,710.2 million (+30.5% against 2005), while retail turnover was 3,294 million, an increase in sales of 6.7%, with the same number of stores, constant exchange rates and consolidation perimeter (over one percentage point more compared to the average for luxury stores in North America).

In the first case, the results were mainly due to the work on the brand portfolio in recent years; in the second, growth was achieved thanks to investments in opening 570 new outlets, worldwide (70% of which in North America), and the recent start-up of business in China. Another 500 are already planned for 2007, with an investment that will be 30% up on last year's.

'Profit per share in 2006 will be in line with the most recent estimates announced to the market', Guerra pointed out yesterday. He also underscored the strength of today's Group, due also to the integration of Australia's OPSM, Cole National of North America, and the potential for future business. Obviously, this continues to revolve around the best-known brands. For example, total revenues from Ray-Ban, the world's most famous eyewear, had a two-figure increase for the fourth year running and sales were in excess of 14 million pairs (a record for the sector). There was also a 40% upturn in luxury brands (like Bulgari, Chanel, Dolce & Gabbana, Prada and Versace).

Geographically-speaking, Luxottica has continued to strengthen its presence in North America, and the wholesale business in emerging markets has risen by 60%. This means that another potential development area for the near future has been identified.

(Source: Il Sole 24 Ore)