Luxottica re-adjusts to downturn

Luxottica is aggressively adjusting its manufacturing, distribution and sales structures to cope with a reduction in demand.

The company expects to post a 16 per cent reduction in consolidated net income for 2008 of €400m. This figure includes the positive impact of sales from the Oakley brand which are included in full year results for the first time. In a statement to investors, Luxottica claimed that a 'significant contraction' in demand during the fourth quarter of 2008 contributed to an erosion in its margins in both its wholesale and retail divisions.

The depreciation of the US dollar against the euro, and the drastic contraction first of the US market and then of the European market were cited as being important factors in Luxottica's financial results for 2008.