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Oakley Helps Fuel Luxottica's Q2 Growth

Published July 30, 2009

MILAN, Italy (BRAIN)—Luxottica sales were up 3.5 percent in the second quarter due in large part by the performance of Ray-Ban and Oakley.

The two brands posted growth in sales in both the sun and optical businesses for the quarter, and for the trailing 12 months, which was the most difficult portion of the global economic downturn.

“We outlined our priorities for 2009 from the very beginning: a solid financial position and an immediate search for a new equilibrium and efficiencies in manufacturing and distribution, while maintaining our commitment to growth and the search for new solutions that would support the long-term growth of Luxottica," said Andrea Guerra, chief exucutive officer of Luxottica.

Looking at the sales performance of the Wholesale Division by geography, Luxottica did well in Europe and key emerging markets, while in the United States results were positive in June. Japan, on the other hand, was negative and so were results in emerging markets affected by the decline in the tourism industry.

Net sales for the quarter at the Retail Division rose to 825.3 million euros, from 771.1 million euros in the second quarter of 2008 (up by 7.0 percent at current exchange rates, down by 3.4 percent at constant exchange rates). The Division’s operating income for the quarter, on the other hand, was 115.9 million euros, compared with 119.6 million euros for last year’s second quarter (down by 3.0 percent). Operating margin declined to 14 percent for the quarter, from 15.5 percent in the same period last year.

Besides Oakley and Ray-Ban, Luxottica owns Revo, Vogue, Persol, Oliver Peoples and Arnette and licenses nearly a dozen other luxury eyewear brands.

Topics associated with this article: Earnings/Financial Reports

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