Luxottica Reports Increased Revenues in Wholesale, Gains in Retail for Q3

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MILAN, Italy—Luxottica Group SpA [NYSE: LUX] reported total net sales of €1.8 billion for the third quarter, along with a record-setting quarterly free cash flow of €295 million, according to the company’s consolidated results for the three-months and nine-months ending Sept. 30.

Wholesale division sales worldwide jumped to €686 million from €647 million in the year-ago period, and Luxottica CEO, Andrea Guerra, cited in particular, strength in the U.S. as well as a particularly strong period for European sales.

Luxottica’s retail division revenues were €1,099 million for the period, reflecting a 3.3 percent decline from €1,137 at current exchange rates, but an improvement in net income for the period, Guerra said, citing strong double digit comps for Sunglass Hut and single-digit improvement for North American retail.

“We are very satisfied with the third quarter’s performance and the systematic growth we have been pursuing with determination since the beginning of the year, recording a 7.4 percent increase in sales at constant exchange rates and increased profitability supported by constant efficiency gains,” commented Guerra, who added, “We have further reduced our net debt due to excellent free cash flow of €295 million generated in the quarter.”

Guerra remarked. “Europe is in excellent shape with results exceeding expectations (+15.1 percent) and with outstanding performances in Germany, France and the Nordics. Italy continued its positive growth trend and Spain is back to growth, recording an increase of 11.3 percent. Emerging market countries continue to be a source of enormous satisfaction, recording sales increases of 19 percent at constant exchange rates. North America is also a structurally growing market as a result of an excellent brand portfolio and our efficient organization.”

Net income for the third quarter of 2013 increased by 7.9 percent to €148 million, compared to €137 million in the third quarter of 2012. In the first nine months of 2013, adjusted net income reached €525 million, growing 10.5 percent compared to €475 million in the same period of 2012.