Luxottica Q2 profit soars on higher sales, raises outlook for FY '06
27 Jul '06
5 min read
Luxottica Group now expects to post earnings per share (EPS) for fiscal year 2006(5) of between €0.93 and €0.94 (or earnings per American Depositary Share of between US$1.16 and US$1.17). Luxottica Group's updated forecast for fiscal year 2006 is based on a € 1 = US$1.2444 average exchange rate for the twelve-month period, in line with the actual average exchange rate for fiscal year 2005.
Guerra concluded: "I am especially pleased to report that cash flow generation was for yet another quarter one of the highlights of our results, with €150 million before the payment of dividends and acquisitions. This is an important testament to the strength of our business." On June 30, 2006, Luxottica Group's consolidated net outstanding debt was €1,505.2 million (compared with net outstanding debt of €1,457.4 million on March 31, 2006), showing a strong improvement compared with June 30, 2005.
The second quarter was a record period for the wholesale business. While sales to third parties -- a key measure of our wholesale business - rose by 27.1%, operating margin jumped 330 basis points to 27.8%, in line with all- time highs for our wholesale Division. Main drivers of this performance were: the strength and further improved penetration of the Group's luxury and fashion brands -- mainly Bvlgari, Chanel, Dolce & Gabbana, Prada and Versace; another strong, above 20%-growth quarter by Ray-Ban; and, ongoing success in strengthening ties with key customers around the world through our superior service.
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