Luxottica 3Q Sales Reach EUR2.2 B; U.S. Wholesale Falls -- Update

   By Manuela Mesco 
 

MILAN--Italy's eyewear firm Luxottica said Monday its third-quarter sales grew 3.2% compared with the same period last year to reach 2.2 billion euros ($2.4 billion), as Europe and Latin America supported growth.

The company, which makes eyewear for the likes of Dolce & Gabbana and Chanel and owns the Ray-Ban brand, said that its third quarter sales result was impacted by the reorganization of some of its operations particularly at wholesale level.

The changes are part of an attempt to simplify the business and streamline costs, chief executive Massimo Vian said to analysts.

The luxury-good sector is going through significant changes as many brands struggle to keep up with changing customer behavior. Volatile currency and macroeconomic conditions have further impacted the sector's growth.

As a result, several companies are rethinking their distribution and retail strategies and are cutting costs.

Luxottica--which is working to simplify its technological, manufacturing and logistics infrastructure and processes--said that it expects the business to strengthen next year also as a result of the current reorganization.

In North America, the firm's main market, sales were up almost 3% on the year, but fell strongly in the wholesale segment. The company said the decline was caused mainly by the decision to cut sales to online operators in the region and by the ongoing integration process for the Oakley sports brand.

In China, the wholesale division also suffered as the company changed its distribution approach. Luxottica got rid of several independent sellers and withdrew some goods from the market.

As a whole, the company's wholesale division totalled EUR800 million in sales, down 3.2%. Sales in the retail division grew 7.2%.

(END) Dow Jones Newswires

October 24, 2016 14:27 ET (18:27 GMT)

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