MILAN — A positive performance at both retail and wholesale across all main geographic markets and renewed interest in luxury eyewear brands helped Luxottica Group SpA lift net profits by 34.5 percent in the third quarter, to 101.9 million euros, or $130.4 million, compared with 75.8 million euros, or $107.6 million, in the same period last year.
Sales rose 19.7 percent to 1.46 billion euros, or $1.87 billion, in the three months through Sept. 30.
Dollar figures were converted at average exchange rates for the periods to which they refer. “Results achieved in the third quarter of 2010 were positive,” said Andrea Guerra, chief executive officer. “All our people were able to strongly react to and make the best of the opportunities offered by the new world in which we operate.”
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Sales in Europe and the U.S. grew 12.7 percent and 8.5 percent, respectively. Emerging markets gained 26.2 percent compared with the same period last year.
Guerra cited Sunglass Hut, Luxottica’s specialty sun stores chain, which posted a 12.5 percent growth in sales in the U.S.
The executive also drew attention to a renewed interest in the group’s premium and luxury brands over the last two quarters. Luxottica, which owns the Oakley and Ray-Ban labels, holds eyewear licenses with brands including Bulgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada, Salvatore Ferragamo, Tiffany and Versace. Earlier this month, the company inked an agreement with Coach that will start in January 2012.
“I’m also really proud of our excellent positive free cash flow, equivalent to more than 250 million euros [$320 million] in the quarter, which confirmed the validity of our business model and the constant attention to working capital,” said Guerra.
The executive concluded on an upbeat note, forecasting a net profit of 400 million euros, or $558.1 million at current exchange, at the end of the year. In the nine months ended Sept. 30, Luxottica posted a net profit of 347.1 million euros, or $454.7 million at average exchange.