Italy : Eyewear leader Luxottica confirms 2008 EPS forecast

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Eyewear leader Luxottica confirms 2008 EPS forecast

27
Mar '08

Luxottica Group S.p.A. a global leader in the design, manufacturing and distribution of premium fashion and luxury eyewear, confirmed its previously announced earnings per share (EPS) guidance for fiscal year 2008 on a conference call with analysts.

During the same call, management discussed the Group's different seasonality and wholesale/retail mix resulting from the acquisition of Oakley. The related slide presentation is available for download from the investor relations, conference calls section of the Group's corporate website.

Key discussion points on call included:
- The wholesale segment. The addition of Oakley to Luxottica's stand-alone business shifted more weight to the wholesale segment, given that the size of Oakley's wholesale business for the most recent full year was over three times the size of its retail business in terms of sales.

Due to the much higher proportion of Oakley's sun business compared with its optical business, its net sales and especially its operating income have historically been concentrated in the two quarters when the sun business is strongest: the second and third quarters of each year.

- Synergies and one-time restructuring charges. In fiscal year 2008, synergies resulting from the Oakley acquisition are expected to grow progressively quarter after quarter.

At the same time, the related restructuring charges will be more heavily weighted in the first six months of the year, with the second half of the year expected to receive the greatest net benefit from the Oakley integration.

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