The worst effects of the global recession on optics have passed according to Luxottica.
Financial results for the first half of 2009 revealed a 12.7 per cent decline in the company's second-quarter net income to €115.7m from €132.6m over the same period in 2008. However, chief executive Andrea Guerra said in a conference call: 'We believe the worst is over.'
Guerra disclosed that after 'an extremely difficult January and February' the market had stabilised in the following months. Revealing that July was 'another solid, positive month' Guerra said: 'We feel more comfortable today than one month ago, three months ago, six months ago.'
Luxottica's net income for the half-year fell 17 per cent to €196.1m and net sales declined 1.4 per cent to €2,714m at current exchange rates, but its second quarter net sales increased 3.5 per cent to €1,401.6m.
Explaining how consumer trends had changed during the recession, Guerra said customers were seeking 'simpler products' and spectacle wearers did not want to be perceived as showing off.
Good weather was said to have contributed to an improvement in European sales, while 'unseasonably poor' weather on the US east coast had impacted the company's American revenues.
While pinpointing September as 'a crossroads month', Luxottica said it was confident going into the second half of the year due to 'a less challenging scenario overall'.
A 10-year extension to Luxottica's licence agreement with Versace was also announced.