Italian luxury eyewear giant, Luxottica Group SpA, announced a rise in sales of 34.3 percent in fiscal 2005, bringing consolidated sales to €4.370 billion (£2.980 billion). Consolidated group sales in the fourth quarter rose 18 percent to €1.118 billion.
Net consolidated profit for the year climbed 22.3 percent to €602.6 million, while consolidated profit for the fourth quarter topped €145 million, a surge of 39.2 percent.
Retail sales for the full year rose 40.5 percent to €3.298 billion. Meanwhile, wholesale sales climbed 19.7 percent to €1.310 billion in 2005.
“Fiscal year 2005 was an exceptional year for our Group, during which we enjoyed strong growth from both wholesale and retail operations, with sales for the year growing by 19.7 percent and 40.5 percent respectively,” said Andrea Guerra, group chief executive. “In wholesale in particular, throughout the entire year we enjoyed significant additional growth in profitability thanks also to improved penetration in key markets. Cash flow generation was another strong feature of our results for the year, at €440 million.”
In the fourth quarter of last year, the Group entered a new stage in the integration of Cole National, which will be a contributor to additional improvements to profitability in 2006. The focus is now on the future growth of the business, especially on the Pearle Vision retail brand.
Retail operations in North America performed particularly well in the fourth quarter, with 5,300 stores in that market. Meanwhile, the group’s wholesale operations saw additional growth and improved profitability, with sales to third parties climbing 27.5 percent. The operating margin for the fourth quarter rose to 22.0 percent, with the operating margin for the year rising to 23.2 percent.
Click Here: WORLD CUP Rugby Shop
Brands like Bulgari, Chanel , Prada, Versace and Ray-Ban posted strong profits in the fourth quarter, and the launch of the new Dolce & Gabbana collections also resulted in strong results.
The group’s sales forecast for 2006(7) is between €4.7 billion and €4.8 billion, or an increase of 8 to 10 percent.
Luxottica Group has nearly 5,000 optical and sun retail stores in North America, Asia-Pacific and China and a portfolio comprising leading brands such as Ray-Ban, Vogue, Persol, Arnette and Revo and licensed brands Bulgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Prada and Versace.