LONGARONE, Italy--De Rigo had a 21.6 percent drop in net income in 2004, to 14.5 million Euros, despite a 1.9 percent increase in sales for the year.

The company attributed the income decline in part to comparison with 2003, in which its income was affected by the sale of its controlling interest in Eyewear International Distribution, De Rigo's joint venture with Prada Group.

De Rigo had total sales of 514.4 million Euros in 2004. Sales by the company's wholesale and manufacturing division decreased by 1.2 percent to 134.5 million Euros. Sales by De Rigo's retail division reached 389.8 million Euros, up 7.8 percent.

Within the retail segment, the company Dollond & Aitchison chain in the U.K. had sales of 248.9 million Euros, a 7.8 percent increase; D&A's comparable-store sales rose 6.2 percent for the year. De Rigo's General Optica chain in Spain also had a 7.8 percent sales increase in 2004, to 140.9 million Euros. Its comp-store sales were up six percent for the year.

Commented Ennio De Rigo, chairman of the De Rigo Group, "We are working to capitalize on the opportunities for sales growth afforded by all of the license agreements we have recently entered into, as well as looking to develop additional new business with Ermenegildo Zegna and Jean Paul Gaultier."

Looking ahead, he said, "We must recognize that general economic conditions are strongly influencing the optical sector in certain markets in which we operate. These challenges will requires us to devote additional effort and to develop new strategies in order to achieve the desired results."