Sales at Vision Express, the UK and Ireland multiple, were ÔdisappointingÕ for the first half of 2002, its French parent has announced.
GrandVision, which has optical outlets in a dozen European countries, reported sales had increased by 6 per cent for its 371 owned stores and 151 licensed outlets to E309,269. However, at its UK and Ireland retail branches sales inched ahead from E118,526 last year to E120,874 in 2002.
Nevertheless, operating profit improved from E7,702 to E10,533, a performance which the president of GrandVision, Daniel Abittan, said was encouraging.
ÔIf sales are disappointing [in the UK], EBIT (earnings before interest and taxes) is up more than a third at 8.7 per cent,Õ he said. ÔIn the rest of Europe our trading losses were divided by a third, in spite of poor spring weather which penalised our sunglasses sales, particularly in Italy.Õ
Elsewhere, GrandVisionÕs 200 outlets in France posted an improved operating profit over 10 per cent Ð from E14,160 to E17,853 Ð for the first time.
Mr Abittan said that now the business had sold its photographic interests and was based on one activity Ð its optical retail outlets Ð GrandVision could focus on improving results.
On August 1 the board also decided to reduce share capital by cancelling the companyÕs own shares bought back by GrandVision under a share buy-back programme.
ÔWith the debt reduction following divestment of our photo activity, we were able to buy 10 per cent of own shares and reduce our share capital by cancelling these shares, thus improving net profit per share,Õ he said.
ÔI can only confirm our goals, set two years ago. At this stage, we believe we can reach 8 per cent EBIT before pre-opening expenses for our fiscal year 2002, and continue to improve profitability in 2003.Õ