Luxottica profits slide as US dollar weakens

Turnover in 2003 fell 11.2 per cent to E2.82bn but rose by 5.9 per cent in the fourth quarter to E718.1m.
However, fourth-quarter sales at its manufacturing division were down 7.6 per cent, and 11.8 per cent on the year to E995.1m. According to Reuters, Luxottica's chief financial officer Enrico Cavatorta blamed the fall on a hangover from the end of the Armani licence. Also, production and shipping had not kept up with orders for Prada and Versace eyewear.
He was confident Luxottica would renew its licence for Chanel eyewear, and suggested the purchase of Cole National should complete in the second half of 2004. Although Cole owns Pearle Vision, the priority was the US. 'We aren't interested in being active retailers in Europe in the near-mid term,' he said. The Luxottica group announced a 28 per cent drop in profits for 2003 at E267.3m, mainly due to the weak dollar against the euro.
Turnover in 2003 fell 11.2 per cent to E2.82bn but rose by 5.9 per cent in the fourth quarter to E718.1m.
However, fourth-quarter sales at its manufacturing division were down 7.6 per cent, and 11.8 per cent on the year to E995.1m. According to Reuters, Luxottica's chief financial officer Enrico Cavatorta blamed the fall on a hangover from the end of the Armani licence. Also, production and shipping had not kept up with orders for Prada and Versace eyewear.
He was confident Luxottica would renew its licence for Chanel eyewear, and suggested the purchase of Cole National should complete in the second half of 2004. Although Cole owns Pearle Vision, the priority was the US. 'We aren't interested in being active retailers in Europe in the near-mid term,' he said.