After Record Q2, Luxottica’s Guerra Looks Ahead ‘With a Positive Attitude’

MILAN—Coming off record results in both sales and profits in this year’s second quarter, Luxottica Group’s top executive expressed optimism about second-half prospects during a conference call last month with financial analysts.

After seeing positive trends in July as well, Andrea Guerra, Luxottica’s chief executive officer, said he is looking forward to the rest of this year “with a positive attitude.” To back up his statement, Guerra cited trends such as improved performance by most of the company’s North American retail brands (with the notable exception of Pearle Vision), double-digit wholesale gains by Luxottica’s Ray-Ban and Oakley eyewear brands as well as its luxury segment in Q2, and strong sales performances in Europe, China and emerging markets.

Guerra cited about 10 “special projects” that are underway, designed to help boost second-half results. Included among those are the wholesale division’s upcoming launches of the Chanel Bouton, Prada Swing, Tiffany Key and Burberry April shower eyewear collections. On the retail side, LensCrafters is preparing a strong back-to-school promotional effort, according to Guerra.

Overall retail comparable-store sales are positive, he said, adding, “We are on track to meet our full-year objectives.” In Q2, Luxottica posted record sales of €1,595.1 million, a 13.8 percent increase over the same period last year (up 6.5 percent at constant currency rates). Net income for the quarter rose 30.1 percent, to €150.1 million.

The company’s wholesale division delivered a record performance in Q2, with sales of €651.2 million, a 13.2 percent increase (up 7.8 percent at constant currency rates). Luxottica Retail also showed a sales increase for the period, rising 14.3 percent (up 5.6 percent at constant currency rates) to €944 million. The retail division’s sales of prescription eyewear in North America had a 4.1 percent comparable-store increase in the quarter; LensCrafters, Sears Optical and Target Optical all showed positive comp sales in Q2, while Sunglass Hut posted a 5.5 percent comp-sales increase in the U.S. during the period.

In 2010’s first six months, Luxottica had net sales of €2,986.8 million, up 10.1 percent (up 6.7 percent at constant currency rates). Net income rose 26.3 percent in the first half, to €245.1 million. ■ ■