Luxottica's Q3 profit up thanks to the AmericasFriday, 26 October 2012
"Investments in emerging markets continue to pay off ... We are confident that our balanced business model and sales momentum constitute an excellent base as we head towards the end of 2012," Chief Executive Andrea Guerra said in a statement released Thursday. The countries where the company posted double-digit growth include China, Turkey, Mexico, India, Brazil and the Eastern European ones.
He also pointed out that North America was growing more than had been expected at the beginning of the year, while growth in western Europe accelerated over the quarter, with signs of improvement in recession-hit Mediterranean countries.
The luxury eyewear maker, owner and maker of Ray-Bans and sunglasses for the likes of Prada and Gucci, said third-quarter net profit totalled 138.6 million euros. Revenues in the period were up 17 percent at 1.78 billion euros.
Net sales were 1.78 billion euros, up 17 percent compared with the previous year, as the company said "performance in key areas, such as North America and the emerging markets, stood out this quarter."
According to the company’s report, Luxottica is planning to invest more than 200 million euros over the next three years to increase manufacturing capacity in Italy, China, U.S., Brazil and India, as well as for innovation and IT enhancements.
As reported by ‘Market Watch’, Luxottica beat analysts' expectations of a net profit of 135 million euros.
Luxottica Group SpA ‘s stock had its “accumulate” rating reaffirmed by Banca Akros in a research note issued on Thursday. They currently have a 31 euros price target on the stock.
Other equities research analysts have also recently reviewed their ratings on the stock. Thus, while analysts at Nomura reiterated a “reduce” rating on shares of Luxottica Group SpA in a research note to investors on Thursday, October 18th and set a 27.60 dollars price target on the stock; analysts at Bryan Garnier & Cie reiterated a “buy” rating on shares of Luxottica Group SpA in a research note to investors on Friday, October 12th. They now have a 31 dollars price target on the stock.