Italy-based Luxottica Group S.p.A. (LUX), reported a rise in second-quarter profit as demand for its luxury and sports eye-wear improved across key geographies. Going forward, the company expects emerging markets such as China and India to boost its growth.
For the quarter, net income to common shares was $162 million euros, up 8 percent from 150 million euros in the prior year. On a per share basis, earnings were 0.35 euros, compared to 0.33 euros last year.
In U.S. dollars, net income for the quarter rose 22.3 percent to $233 million from $190.7 million last year. On a per share basis, earnings were $0.51, compared to $0.42 last year.
Sales for the quarter rose 2.4 percent to 1.63 billion euros from 1.6 billion euros in the prior year. In U.S. dollars, sales grew 16 percent to $2.35 billion from $2.03 billion.
The company registered improvement in all the major geographic markets, mainly in Europe, North America and the emerging markets.
CEO Andrea Guerra said growth was strong in key markets such as India, China, and Brazil. There was also notable improvement in Europe, the Middle East, South East Asia and Latin America.
Guerra also noted that there was robust demand for premium brands such as Chanel, Prada, Burberry, Tiffany and Ralph Lauren, while momentum was sustained for Ray-Ban, Oakley, LensCrafters and Sunglass Hut, the Group's sun specialty chain.
Segment wise, wholesale division grew 8.1 percent from the previous year, led by Ray-Ban and Oakley.
Retail segment edged down 1.5 percent, reflecting the depreciation of the U.S. dollar against the Euro, as 80 percent of sales occur in North America.
Operating margin for the quarter improved to 16.9 percent from 16.2 percent in the prior year.
LUX is trading at $32.28, up $0.22 or 0.69%, on the NYSE.
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