Luxottica Group SpA, owner of the Ray-Ban and Oakley sunglasses brands, aims to raise net income 27 percent this year after demand in emerging markets and renewed interest in luxury eyewear boosted quarterly sales.
Net income may rise to 400 million euros ($561 million) from 315 million euros in 2009, Milan-based Luxottica said in a statement after trading today. That’s in line with a 400.5 million-euro average estimate of 12 analysts compiled by Bloomberg.
Luxottica, the world’s largest maker of eyewear, returned to earnings growth in the final quarter of 2009 after consumers deferred purchases for almost two years during the recession. The company is “optimistic” for the rest of 2010, Chief Executive Officer Andrea Guerra said in the statement.
Third-quarter net income advanced 35 percent to 101.9 million euros, compared with a 98 million-euro average estimate of 12 analysts surveyed by Bloomberg. Sales in the three months ended Sept. 30 rose 20 percent to 1.46 billion euros.
The Italian company, which makes eyewear under license for Chanel and Prada, said sales in “key emerging markets” rose 26 percent in the quarter, while European revenue advanced 13 percent and U.S.-dollar sales in North America rose 8.5 percent.
Wholesale revenue for luxury brands advanced 18 percent, the second consecutive quarterly gain, Luxottica said. Wholesale revenue in emerging markets, which account for about 13 percent of total wholesale sales for the company, rose more than 20 percent for the fourth straight quarter, with about a 40 percent increase in India and South Korea.
Luxottica, which owns the LensCrafters and Sunglass Hut store brands, said retail-division revenue rose to 946.5 million euros in the third quarter from 793.8 million euros last year.
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