Oct 29, 2014
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Luxottica's stronger Q3 sales growth boosted by currencies

Oct 29, 2014

LONDON, United Kingdom - Sales at Italian luxury eyewear maker Luxottica grew faster in the third quarter than in the previous three months helped by a strong performance in emerging markets and more favourable currency effects.

The maker of Oakley and Ray Ban sunglasses is seeking to draw a line under two difficult months during which the company lost two successive chief executives, including 10-year veteran boss Andrea Guerra, who left after disagreements with founder and majority owner Leonardo Del Vecchio.

Luxottica Monument to Eyewear Agordo at the group's headquarters in Italy | Source: Luxottica

Luxottica said on Wednesday sales in the three months to September rose 5.5 percent from a year ago to 1.88 billion euros ($2.4 billion). The sales increase was hardly changed when factoring in exchange rate movements.

Analysts had looked for third-quarter revenues of 1.92 billion euros according to a Thomson Reuters SmartEstimate but Luxottica said an accounting change at its EyeMed unit had a negative 23 million euro impact on sales.

Earlier this year the strength of the euro took a toll on Luxottica, which reaps more than half its sales from the United States. Second-quarter net sales rose 2 percent although growth was more than three times that before currency effects.

Operating profit met expectations at 281 million euros in the third quarter, up 10 percent from a year earlier despite a 15 million euro payout to Guerra.

Luxottica said Massimo Vian, chief operating officer since 2010, had taken on all executive powers until becoming co-chief executive in January with veteran Procter & Gamble manager Adil Mehboob-Khan. Both joined the board of directors on Wednesday.

1 US dollar = 0.7846 euro

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