Luxottica 3Q Sales Fall; Backs Guidance for 2017
24 October 2017 - 4:12AM
Dow Jones News
By Euan Conley
Luxottica Group SpA (LUX.MI) said Monday that underlying sales
fell in the third quarter due to restructuring and weather-related
store closures.
The Italian luxury eyewear maker said sales for the three months
ended Sept. 30 were 2.15 billion euros ($2.52 billion) compared
with EUR2.22 billion for the same period last year. Sales declined
3.5% on an underlying basis driven primarily by the restructuring
of its Oakley brand and a trio of hurricanes that forced Luxottica
to close hundreds of stores over a week-long period. Sales,
however, increased 0.8% based on constant currencies, it said.
The company confirmed guidance for 2017 saying it's on track to
meet the target of low-to-mid single digit rise in sales at
constant currencies, and added that it expects profit growth to
rise in line with sales this year.
"Thanks to a return to growth in the first two weeks of October
and the solid profitability and cash flow of the first nine months,
we confirm the outlook for 2017," said Luxottica's chief executive
officer, Massimo Vian, and its executive chariman, Leonard Del
Vecchio. The company added that they expect an acceleration in
growth in 2018.
The Milan-based maker of Ray-Ban sunglasses agreed in January to
merge with Essilor SA (EI.FR), the French lens manufacturer, a deal
which would create a company with a combined market value of around
EUR46.3 billion. However, the European Commission's antitrust
regulator needs to approve the merger, with a decision expected by
February.
Write to Euan Conley at euan.conley@dowjones.com
(END) Dow Jones Newswires
October 23, 2017 12:57 ET (16:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.