FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
JULY 23, 2003
COMMISSION FILE NO. 1 - 10421
LUXOTTICA GROUP S.P.A.
VIA CANTU 2, MILAN 20123 ITALY
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F /X/ Form 40-F / /
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): / /
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): / /
Indicate by check mark whether by furnishing the information contained
in this Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes / / No /X/
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-______
[LUXOTTICA GROUP LOGO] [PRADA LOGO]
SET FORTH BELOW IS THE TEXT OF A PRESS RELEASE ISSUED ON JULY 23, 2003.
Luxottica Group And Prada Sign
A Ten-Year Licensing Agreement
July 23, 2003 - Luxottica Group (NYSE: LUX; MTA: LUX), world leader in the
eyewear sector, and the Prada Group, one of the world leaders in leather goods,
ready-to-wear and footwear, today jointly announced that they have signed a
ten-year licensing agreement.
The agreement, which covers all markets worldwide, provides for exclusive
production and distribution of prescription frames and sunglasses bearing the
Prada and Miu Miu names by the Luxottica Group. This agreement represents one of
the most important industrial agreements for "Made in Italy" and is a noteworthy
example of the collaboration between two Italian groups working in the fields of
creativity, design, production and distribution.
Luxottica Group, worldwide leader in the design, production and distribution of
sunglasses and prescription frames, is present in 120 countries, has 7
production facilities and holds a large number of famous and prestigious brands
in its portfolio.
Prada, an Italian and world leader of high-quality leather goods, ready-to-wear
and footwear, is present in 65 countries with a distribution network of about
250 directly-owned stores, 7,000 employees and 17 production facilities. The
Prada and Miu Miu brands represent Italian style, culture and design throughout
the world.
The agreement provides that Luxottica Group will exclusively produce and
distribute eyewear with the Prada and Miu Miu names through a licensing
agreement for the period from 2003 to 2013. Prada will oversee the creation,
design and overall creative coordination of all of the collections under the
supervision of Patrizio Bertelli and Miuccia Prada. The first collections will
be presented and launched in September of this year.
The deal was finalized through Luxottica's purchase of Prada's fully-owned
companies - that produce and distribute eyewear - for the amount of 26.5 million
Euro. Luxottica Group will have the option to rely on third-party manufacturers
under its own supervision.
Thanks to the agreement, Luxottica Group expects to generate sales of
approximately 120 million Euro for the first 12 months. This licensing agreement
will not have a significant impact on the 2003 results.
Commenting on the agreement, Leonardo Del Vecchio, Chairman of Luxottica Group
said: "I am very satisfied to include Prada, one of the most important brands in
international luxury goods, in our portfolio. With this new license - and others
we have recently signed - we have restored the importance that designer lines
had for us in 2002 and at the same time have extended the duration of the
licenses in our portfolio."
Patrizio Bertelli, Chief Administrative Officer of Prada said: "The agreement
with the world leader in eyewear allows our Group to significantly expand its
presence in the prescription eyewear and sunglasses markets, therefore
contributing to the overall success of the agreement with the strength of our
brands, our prestige and our design. I am certain that the strong technological,
industrial and distributive capabilities of Luxottica Group will pave the way to
achieve significant economic results in a short amount of time."
# # #
ABOUT LUXOTTICA GROUP S.p.A.
--------------------------------------------------------------------------------
Luxottica Group is the world leader in the design, manufacturing, marketing and
distribution of prescription frames and sunglasses in mid- and premium-priced
categories. The Group's products, which are designed and manufactured in six
facilities in Italy and one in the People's Republic of China, include over
2,450 styles in a wide array of colours and sizes and are sold through 21
wholly-owned subsidiaries in the United States, Canada, Italy, France, Spain,
Portugal, Sweden, Germany, the United Kingdom, Brazil, Switzerland, Mexico,
Belgium, Argentina, South Africa, Finland, Austria, Norway, Japan, Hong Kong and
Australia; two 75%-owned subsidiaries in Israel and Poland; a 70%-owned
subsidiary in Greece; three 51%-owned subsidiaries in the Netherlands, Turkey
and Singapore, one 49%-owned subsidiary in the Arab Emirates and one 44%-owned
subsidiary in India. In March 2001, Luxottica Group acquired Sunglass Hut
International, a leading sunglass retailer with approximately 1,900 stores
worldwide. This followed the acquisitions of Bausch & Lomb sunglass business,
which includes the prestigious Ray-Ban(R), Revo(R), ArnetteTM and Killer Loop(R)
brands, in June 1999, and LensCrafters, the largest optical retail chain in
North America, in May 1995. For fiscal 2002, Group net sales improved
year-over-year by 2.2 percent to EUR 3,132.2 million and net income by 17.6
percent to EUR 372.1 million. Additional information on the company is available
on the web at www.luxottica.com.
--------------------------------------------------------------------------------
ABOUT PRADA HOLDING N.V.
PRADA Holding N.V., is the Dutch Holding company of one of the world's leading
groups in design, production and distribution of fine leather goods,
ready-to-wear and footwear. The Group has some of the most recognized and
prestigious international brands in its
portfolio including: Prada, Jil Sander, Church's, Helmut Lang, Genny, Car Shoe,
Miu Miu and Azzedine Alaia.
--------------------------------------------------------------------------------
SAFE HARBOR STATEMENT
Certain statements in this press release may constitute forward looking
statements which are based on management's current expectations and beliefs and
are subject to a number of risks and uncertainties that could cause actual
results to differ materially, including risks that may not be subject to the
Company's control. These risks and uncertainties include, but are not limited
to, fluctuations in exchange rates, economic and weather factors affecting
consumer spending, the Company's ability to successfully introduce and market
new products, the Company's ability to effectively integrate recently acquired
businesses, the Company's ability to successfully launch initiatives to increase
sales and reduce costs, the availability of correction alternatives to
prescription eyeglasses, as well as other political, economic and technological
factors and other risks referred to in the Company's filings with the Securities
and Exchange Commission. These forward-looking statements are made as of the
date hereof, and the Company does not assume any obligation to update them.
# # #
COMPANY CONTACTS:
LUXOTTICA GROUP SPA PRADA GROUP
Sabina Grossi, Director, Investor Relations Jason Mitchell Jacobs
Alessandra Senici, Investor Relations Financial Communication Manager
Tel.: +39-02-8633-4665 Tel: +39-02-5419-2405
E-mail: AlessandraSenici@Luxottica.com E-mail: jason.jacobs@prada.com
LUXOTTICA GROUP SPA - US AGENCY CONTACT
BREAKSTONE & RUTH INTERNATIONAL
Alexander Fudukidis
Tel.: +1-646-536-7012
E-mail: AFudukidis@breakstoneruth.com
[LUXOTTICA GROUP LOGO]
SET FORTH BELOW IS THE TEXT OF A PRESS RELEASE ISSUED ON JULY 24, 2003.
Luxottica Group Extends Cash Offer for OPSM Group to August 15
MILAN, ITALY, JULY 24, 2003 - LUXOTTICA GROUP S.p.A. (NYSE: LUX; MTA: LUX),
worldwide leader in the eyewear sector, today announced that its cash offer
announced on April 29, 2003 and commenced on June 16, 2003 for all outstanding
shares, options and performance rights of OPSM Group Limited (ASX: OPS) will be
extended by two weeks. The offer by Luxottica South Pacific, an indirect,
wholly-owned subsidiary of Luxottica Group, to OPSM holders of shares, options
and performance rights is now scheduled to expire at 7:00 p.m. (Sydney time) on
August 15, 2003, unless extended in accordance with the Australian Corporations
Act.
Luxottica Group has chosen to extend the offer period to provide shareholders
with additional time to accept the offer.
The Company also announced that, in addition to the Australian Competition and
Consumer Commission (ACCC) approval of the acquisition, Luxottica Group has also
received confirmation from the Australian Foreign Investment Review Board (FIRB)
that it has no objections to the Group's offer for the OPSM Group.
Any enquiries relating to this offer can be directed to the Luxottica Group-OPSM
Offer Helpline at 1300 766 050 for calls within Australia. For calls from
outside Australia, additional information can be obtained at +61 2 9240 7546.
Please note that calls to these numbers will be recorded, for legal reasons.
ABOUT LUXOTTICA GROUP S.p.A.
--------------------------------------------------------------------------------
Luxottica Group is the world leader in the design, manufacturing, marketing and
distribution of prescription frames and sunglasses in mid- and premium-priced
categories. The Group's products, which are designed and manufactured in six
facilities in Italy and one in the People's Republic of China, include over
2,450 styles in a wide array of colours and sizes and are sold through 21
wholly-owned subsidiaries in the United States, Canada, Italy, France, Spain,
Portugal, Sweden, Germany, the United Kingdom, Brazil, Switzerland, Mexico,
Belgium,
Argentina, South Africa, Finland, Austria, Norway, Japan, Hong Kong and
Australia; two 75%-owned subsidiaries in Israel and Poland; a 70%-owned
subsidiary in Greece; three 51%-owned subsidiaries in the Netherlands, Turkey
and Singapore, one 49%-owned subsidiary in the Arab Emirates and one 44%-owned
subsidiary in India. In March 2001, Luxottica Group acquired Sunglass Hut
International, a leading sunglass retailer with approximately 1,900 stores
worldwide. This followed the acquisitions of Bausch & Lomb sunglass business,
which includes the prestigious Ray-Ban(R), Revo(R), ArnetteTM and Killer Loop(R)
brands, in June 1999, and LensCrafters, the largest optical retail chain in
North America, in May 1995. For fiscal 2002, Group net sales improved
year-over-year by 2.2 percent to EUR 3,132.2 million and net income by 17.6
percent to EUR 372.1 million. Additional information on the company is available
on the web at www.luxottica.com.
About OPSM Group
OPSM is the leading optical retailer in Australia, with 481 stores and three
brands - OPSM, Laubman & Pank and budget eyewear - each targeting a clearly
defined market segment. It is also the market leader in New Zealand, with 34
stores, and has expanded into Asia, where it now has 80 stores in Hong Kong, 12
in Singapore and 12 in Malaysia. The total number of OPSM stores as at 31
December 2002 was 619, and OPSM employs approximately 4,000 people.
SAFE HARBOR STATEMENT
--------------------------------------------------------------------------------
Certain statements in this press release may constitute forward looking
statements which are based on management's current expectations and beliefs and
are subject to a number of risks and uncertainties that could cause actual
results to differ materially, including risks that may not be subject to the
Company's control. These risks and uncertainties include, but are not limited
to, fluctuations in exchange rates, economic and weather factors affecting
consumer spending, the Company's ability to successfully introduce and market
new products, the Company's ability to effectively integrate recently acquired
businesses, the Company's ability to successfully launch initiatives to increase
sales and reduce costs, the availability of correction alternatives to
prescription eyeglasses, as well as other political, economic and technological
factors and other risks referred to in the Company's filings with the Securities
and Exchange Commission. These forward-looking statements are made as of the
date hereof, and the Company does not assume any obligation to update them.
# # #
COMPANY CONTACTS US AGENCY CONTACT
--------------------------------------------------------------------------------
Luxottica Group SpA Breakstone & Ruth International
Sabina Grossi, Director, Investor Relations Alexander Fudukidis
Alessandra Senici, Investor Relations
Tel.: +39-02-8633-4665 Tel.: +1.646.536.7012
E-mail: AlessandraSenici@Luxottica.com E-mail: AFudukidis@breakstoneruth.com
[LUXOTTICA GROUP LOGO]
SET FORTH BELOW IS THE TEXT OF A PRESS RELEASE ISSUED ON JULY 28, 2003
Luxottica Group Announces 2nd Quarter Results
Group highlights for the first half of 2003:
- Net sales of EUR 1,411.5 (US$1,559.6 million)
- Operating income of EUR 223.2 million
- Earnings per share or ADS of EUR 0.30 (US$0.33)
Milan, Italy, July 28, 2003 - Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX),
worldwide leader in the eyewear sector, today announced results for the
three-month period and the six-month period ended June 30, 2003(1). Results for
the second quarter and first half were negatively affected by the 19.1 percent
and the 18.7 percent respectively year-over-year devaluation of the U.S. Dollar
against the Euro.
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CONSOLIDATED RESULTS
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SECOND QUARTER
o Consolidated net sales for the quarter declined year-over-year by 19.6
percent to EUR 707.0 million. Assuming constant exchange rates,
consolidated net sales for the quarter would have declined by 5.2
percent.
o Consolidated operating income for the quarter was EUR 111.9 million.
Consequently, consolidated operating margin for the quarter was 15.8
percent.
o Consolidated net income for the quarter was EUR 67.7 million and
consolidated net margin for the quarter was 9.6 percent.
o Earnings per share or American Depositary Share (ADS) (one ADS
represents one ordinary share) for the quarter were EUR 0.15. In U.S.
Dollars, earnings per share or ADS for the quarter were US$0.17.
FIRST HALF
o Consolidated net sales for the first half declined year-over-year by
19.8 percent to EUR 1,411.5 million. Assuming constant exchange rates,
consolidated net sales for the six months would have declined by 5.9
percent.
o Consolidated operating income for the six months was EUR 223.2 million
and consolidated operating margin for the six-month period was 15.8
percent.
1
o Consolidated net income for the first half was EUR 133.3 million and
consolidated net margin for the period was 9.4 percent.
o Earnings per share or American Depositary Share (ADS) for the
six-month period were EUR 0.30. In U.S. Dollars, earnings per share or
ADS for the period were US$0.33.
--------------------------------------------------------------------------------
BREAKDOWN OF MANUFACTURING/ WHOLESALE AND RETAIL RESULTS
--------------------------------------------------------------------------------
o MANUFACTURING/WHOLESALE DIVISION
The Group's manufacturing/wholesale sales for the first half declined
year-over-year by 13.8 percent to EUR 573.0 million. Assuming constant exchange
rates manufacturing/wholesale sales for the six-month period would have declined
by 5.3 percent.
Manufacturing/wholesale operating income for the first half was EUR 126.0
million, reflecting an operating margin of 22.0 percent.
Leonardo Del Vecchio, Chairman of Luxottica Group, commented on the results of
the manufacturing/wholesale division: "In the first half of 2003, the optical
sector experienced a decrease in volumes, while our wholesale division posted a
better performance when compared to the industry, allowing us to gain market
share.
However, since the beginning of June, we have been experiencing an increase in
orders from opticians when compared to previous months, which leads us to
believe that they have sold out the surplus of inventories built in 2002.
In addition, we have recently added the ten-year license agreement with Prada
and Miu Miu brands to our portfolio. As a result of this new license and the new
collections launched during 2003, in 2004 our brand portfolio will be
significantly stronger when compared to 2002."
o RETAIL DIVISION
In the first half, retail sales declined year-over-year by 20.2 percent to EUR
940.0 million. Assuming constant exchange rates, retail sales for the six months
would have declined by 2.5 percent. Same store sales in U.S. Dollar for the
first half declined year-over-year by 3.4 percent.
Retail operating income for the first half was EUR 121.9 million, resulting in
an operating margin of 13.0 percent.
In the second quarter, retail sales declined year-over-year by 21.1 percent to
EUR 470.9 million. Assuming constant exchange rates, retail sales for the
quarter would have declined by 3.0 percent. Same store sales in U.S. Dollar for
the quarter declined year-over-year by 3.7 percent.
Mr. Del Vecchio continued: "The results of our retail division for the second
quarter were affected by the unusually bad weather in North America, which
lasted until the last week of June, penalizing mainly the sun segment both at
LensCrafters and Sunglass Hut International. Retail sales were also affected by
the continued cautious spending patterns of consumers.
However, in contrast to the first two quarters, when sales were down compared to
the same periods of 2002, in July same store sales have been increasing by 2
percent. This makes us hopeful that a pick-up in consumption will materialize
during the second half of 2003; and, assuming that sales in the second half
remain at current levels, 2003 retail revenues in Dollar terms should remain
stable compared with 2002.
2
Moreover, as a result of management's constant attention on improving efficiency
and on controlling cost, operating margin should be in line with 2002.
However, it is encouraging to see that even with lower sales and tough
competition, Luxottica Retail continues to maintain its market share in North
America, in both sun and prescription segment."
--------------------------------------------------------------------------------
STATEMENT FROM THE CHAIRMAN
--------------------------------------------------------------------------------
Mr. Del Vecchio concluded: "The results of the second quarter reflect the
continued impact of the same factors we begun to notice at the beginning of the
year. Most importantly, the weak U.S Dollar which devalued by 19 percent
year-over-year against the Euro continued to have an important effect on our
results. The expiration of the license for the Giorgio Armani and Emporio Armani
eyewear at the end of May was also felt during the quarter. Finally, during the
quarter the continued weak U.S. economy affected retail sales.
We expect that the impact of these factors will progressively lessen during the
second part of the year. Specifically, sales from the new collections launched
in March, Versace, Versus, Ray-Ban prescription and Ray-Ban Junior which are
performing in line with our expectations and the new license agreement signed
with Prada will offset the loss of sales from the Armani licenses.
Moreover, in light of the evolution of the Euro/U.S. Dollar exchange rate during
2002 (the average exchange rates for last year were: EUR 1.00 = US$0.8766 for
the first quarter, EUR 1.00 = US$0.9198 for the second quarter, EUR 1.00 =
US$0.9838 for the third quarter and EUR 1.00 = US$0.9982 for the fourth quarter)
and assuming that Euro/U.S. Dollar exchange rate stabilizes at current levels,
or EUR 1.00 = US$1.15 for the balance of the year, the impact from the
devaluation of the U.S. Dollar against the Euro should progressively decline to
thirteen percent by the last quarter of 2003, down from 18.7 percent for the
first six months of the year.
However, the continued weakening of the U.S Dollar and the weak signs of
recovery of the U.S. economy lead me to conservatively revise our expectations
for earnings per share (EPS) for fiscal year 2003. With an average exchange rate
of EUR 1.00 = US$1.15 for the second half of the year 2003, we expect an
earnings per share of Euro 0.63, or EPADS of US$0.71.
Finally, I would like to highlight once again, that 2003 is a year of transition
for us. We expect to return to approximately 15 percent growth in sales and in
earnings in 2004, a result of the significantly strengthened brand portfolio,
both house brands and designer lines, and the OPSM acquisition."
ABOUT LUXOTTICA GROUP S.p.A.
--------------------------------------------------------------------------------
Luxottica Group is the world leader in the design, manufacturing, marketing and
distribution of prescription frames and sunglasses in mid- and premium-priced
categories. The Group's products, which are designed and manufactured in six
facilities in Italy and one in the People's Republic of China, include over
2,450 styles in a wide array of colors and sizes and are sold through 21
wholly-owned subsidiaries in the United States, Canada, Italy, France, Spain,
Portugal, Sweden, Germany, the United Kingdom, Brazil, Switzerland, Mexico,
Belgium, Argentina, South Africa, Finland, Austria, Norway, Japan, Hong Kong and
Australia; two 75%-owned subsidiaries in Israel and Poland; a 70%-owned
subsidiary in Greece; three 51%-owned subsidiaries in the Netherlands, Turkey
and Singapore, one 49%-owned subsidiary in the Arab Emirates and one 44%-owned
subsidiary in India. In March 2001, Luxottica Group acquired Sunglass Hut
International, a leading sunglass retailer with approximately 1,900 stores
worldwide. This followed the acquisitions of Bausch & Lomb sunglass business,
which includes the prestigious Ray-Ban(R), Revo(R), Arnette(TM) and Killer
Loop(R) brands, in June 1999, and LensCrafters, the largest optical retail chain
in North America, in May 1995. For fiscal 2002, Group net sales improved
year-over-year by 2.2 percent to EUR 3,132.2 million and net income by 17.6
percent to EUR 372.1 million. Additional information on the company is available
on the web at WWW.LUXOTTICA.COM.
3
Non-GAAP Financial Measures
--------------------------------------------------------------------------------
Luxottica Group uses certain measures of financial performance that exclude the
impact of fluctuations in currency exchange rates in the translation of
operating results into Euro. The Company believes that these adjusted financial
measures provide useful information to both management and investors by allowing
a comparison of operating performance on a consistent basis. In addition, since
the Luxottica Group has historically reported such adjusted financial measures
to the investment community, the Company believes that their inclusion provides
consistency in its financial reporting. Further, these adjusted financial
measures are one of the primary indicators management uses for planning and
forecasting in future periods. Operating measures that assume constant exchange
rates between the first half and the second quarter of 2003 and the first half
and the second quarter of 2002 are calculated using for each currency the
average exchange rate for the six-month period and the three-month period ended
June 30, 2002. Operating measures that exclude the impact of fluctuations in
currency exchange rates are not measures of performance under accounting
principles generally accepted in the United States (U.S. GAAP). These non-GAAP
measures are not meant to be considered in isolation or as a substitute for
results prepared in accordance with U.S. GAAP. In addition, Luxottica Group's
method of calculating operating performance excluding the impact of changes in
exchange rates may differ from methods used by other companies. See Table below
for a reconciliation of the operating measures excluding the impact of
fluctuations in currency exchange rates to their most directly comparable U.S.
GAAP financial measures. The adjusted financial measures should be used as a
supplement to U.S. GAAP results to assist the reader in better understanding the
operational performance of the Company.
2Q 2002 2Q 2003 ADJUSTMENT 2Q 2003
U.S. GAAP U.S. GAAP FOR CONSTANT ADJUSTED
Euro million RESULTS RESULTS EXCHANGE RATES RESULTS
-------------------------------------------------------------------------
Consolidated net sales 879.0 707.0 127.0 834.0
Manufacturing/
wholesale net sales 339.9 297.4 31.4 328.8
Retail net sales 596.5 470.9 107.7 578.6
1 H 2002 1 H 2003 ADJUSTMENT 1 H 2003
U.S. GAAP U.S. GAAP FOR CONSTANT ADJUSTED
Euro million RESULTS RESULTS EXCHANGE RATES RESULTS
-------------------------------------------------------------------------
Consolidated net sales 1,759.5 1,411.5 244.9 1,656.4
Manufacturing/
wholesale net sales 664.7 573.0 56.6 629.6
Retail net sales 1,178.7 940.0 209.5 1,149.5
SAFE HARBOR STATEMENT
--------------------------------------------------------------------------------
Certain statements in this press release may constitute forward looking
statements which are based on management's current expectations and beliefs and
are subject to a number of risks and uncertainties that could cause actual
results to differ materially, including risks that may not be subject to the
Company's control. These risks and uncertainties include, but are not limited
to, fluctuations in exchange rates, economic and weather factors affecting
consumer spending, the Company's ability to successfully introduce and market
new products, the Company's ability to effectively integrate recently acquired
businesses, the Company's ability to successfully launch initiatives to increase
sales and reduce costs, the availability of correction alternatives to
prescription eyeglasses, as well as other political, economic and technological
factors and
4
other risks referred to in the Company's filings with the Securities
and Exchange Commission. These forward-looking statements are made as of the
date hereof, and the Company does not assume any obligation to update them.
COMPANY CONTACTS US AGENCY CONTACT
-------------------------------------------------------------------------------
LUXOTTICA GROUP SpA BREAKSTONE & RUTH INTERNATIONAL
Sabina Grossi, Director, Investor Relations Alexander Fudukidis
Alessandra Senici, Investor Relations
Tel.: +39-02-8633-4665 Tel.: +1.646.536.7012
E-mail: ALESSANDRASENICI@LUXOTTICA.COM E-mail: AFUDUKIDIS@BREAKSTONERUTH.COM
FINANCIAL TABLES TO FOLLOW
(1) Unless otherwise noted, all comparisons made in this announcement are
between the three- and six-month period ended June 30, 2003, and the
equivalent three- and six-month period ended June 30, 2002. The Company's
results are discussed in this announcement in accordance with U.S. GAAP and
are broken out for additional perspective into consolidated,
manufacturing/wholesale, including Ray-Ban and retail components, which
include Sunglass Hut International and LensCrafters. As there are
intercompany items, it is important to note the full reconciliation
detailed in the Segmental Information Table provided with this
announcement. Additionally, Luxottica Group considers the financial results
denominated in Euro (EUR), the Group's reporting currency, to be a more
accurate gauge of its operating performance. The results denominated in
U.S. Dollars were converted at the average exchange rate for the
three-month period ended June 30, 2003, of EUR 1.00 = US$1.1372, compared
with EUR 1.00 = US$0.9198 for the second quarter of 2002. For the six-month
period, the results denominated in U.S. dollars were converted at the
average exchange rate of EUR 1.00 = US$1.1049, compared with EUR 1.00 =
US$0.8980 for the equivalent six-month period of 2002.
5
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE THREE-MONTH PERIODS ENDED
JUNE 30, 2003 AND JUNE 30, 2002
KEY FIGURES IN THOUSAND OF EURO(4)
2003 2002(5) % CHANGE
------- -------- --------
NET SALES 706,955 879,003 -19.6%
NET INCOME 67,669 111,283 -39.2%
EARNINGS PER SHARE (ADS)(2) 0.15 0.25
FULLY DILUTED EARNINGS PER SHARE (ADS)(3) 0.15 0.24
KEY FIGURES IN THOUSAND OF U.S. DOLLARS(1)(4)
2003 2002(5) % CHANGE
------- -------- --------
NET SALES 803,949 808,507 -0.6%
NET INCOME 76,953 102,358 -24.8%
EARNINGS PER SHARE (ADS)(2) 0.17 0.23
FULLY DILUTED EARNINGS PER SHARE (ADS)(3) 0.17 0.22
Notes : 2003 2002
(1) Average exchange rate (in U.S. Dollars per Euro) 1.1372 0.9198
(2) Weighted average number
of outstanding shares 447,856,544 453,268,768
(3) Fully diluted average number of shares 448,977,360 456,013,444
(4) Except earnings per share (ADS), which are expressed in Euro and U.S.
Dollars, respectively
(5) Certain amounts presented in the prior year financial statements have
been reclassified to conform with the current year presentation. Among
them was a reclassification of certain revenue items of the retail
division which were recorded in prior year as a reduction in the
related costs and are now reflected as gross revenues and gross costs.
The effect of this reclassification is an increase in sales for the
three-month period ended June 30, 2002 of U.S. Dollars 11.0 million,
and an offsetting increase in costs for the same amounts
6
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE SIX-MONTH PERIODS ENDED
JUNE 30, 2003 AND JUNE 30, 2002
KEY FIGURES IN THOUSAND OF EURO(4)
2003 2002(5) % CHANGE
--------- --------- ---------
NET SALES 1,411,502 1,759,489 -19.8%
NET INCOME 133,283 212,353 -37.2%
EARNINGS PER SHARE (ADS)(2) 0.30 0.47
FULLY DILUTED EARNINGS PER SHARE (ADS)(3) 0.30 0.47
KEY FIGURES IN THOUSAND OF U.S. DOLLARS(1)(4)
2003 2002(5) % CHANGE
--------- --------- ---------
NET SALES 1,559,569 1,580,020 -1.3%
NET INCOME 147,264 190,693 -22.8%
EARNINGS PER SHARE (ADS)(2) 0.33 0.42
FULLY DILUTED EARNINGS PER SHARE (ADS)(3) 0.33 0.42
Notes : 2003 2002
(1) Average exchange rate (in U.S. Dollars per Euro) 1.1049 0.8980
(2) Weighted average number of outstanding
shares 449,398,288 452,633,183
(3) Fully diluted average number of shares 450,547,450 455,497,447
(4) Except earnings per share (ADS), which are
expressed in Euro and U.S. Dollars, respectively
(5) Certain amounts presented in the prior year financial statements have
been reclassified to conform with the current year presentation. Among
them was a reclassification of certain revenue items of the retail
division which were recorded in prior year as a reduction in the
related costs and are now reflected as gross revenues and gross costs.
The effect of this reclassification is an increase in sales for the
six-month period ended June 30, 2002 of U.S. Dollars 23.0 million, and
an offsetting increase in costs for the same amounts
7
LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE THREE-MONTH PERIODS ENDED
JUNE 30, 2003 AND JUNE 30, 2002
IN THOUSAND OF EURO (1) 2003 2002(2) % CHANGE
----------------------- ---------- ---------- --------
NET SALES 706,955 879,003 -19.6%
COST OF SALES (225,084) (251,240)
GROSS PROFIT 481,872 627,763 -23.2%
OPERATING EXPENSES:
SELLING EXPENSES (240,865) (279,692)
ROYALTIES (11,765) (18,752)
ADVERTISING EXPENSES (48,883) (70,543)
GENERAL AND ADMINISTRATIVE
EXPENSES (59,763) (68,031)
TRADEMARK AMORTIZATION (8,701) (9,164)
TOTAL (369,979) (446,182)
OPERATING INCOME 111,893 181,582 -38.4%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES (11,015) (19,198)
INTEREST INCOME 1,507 1,229
OTHER - NET (2,958) (3,806)
OTHER INCOME (EXPENSES) NET (12,466) (21,775)
INCOME BEFORE PROVISION FOR
INCOME TAXES 99,427 159,807 -37.8%
PROVISION FOR INCOME TAXES (29,930) (47,942)
INCOME BEFORE MINORITY INTEREST IN
INCOME OF CONSOLIDATED
SUBSIDIARIES 69,497 111,865
MINORITY INTEREST IN INCOME
OF CONSOLIDATED SUBSIDIARIES (1,828) (582)
NET INCOME 67,669 111,283 -39.2%
EARNINGS PER SHARE (ADS) (1) 0.15 0.25
FULLY DILUTED EARNINGS PER
SHARE (ADS) (1) 0.15 0.24
WEIGHTED AVERAGE NUMBER OF
OUTSTANDING SHARES 447,856,544 453,268,768
FULLY DILUTED AVERAGE NUMBER
OF SHARES 448,977,360 456,013,444
Notes:
(1) Except earnings per share (ADS), which are expressed in Euro
(2) Certain amounts presented in the prior year financial statements have
been reclassified to conform with the current year presentation. Among
them was a reclassification of certain revenue items of the retail
division which were recorded in prior year as a reduction in the related
costs and are now reflected as gross revenues and gross costs. The
effect of this reclassification is an increase in sales for the
three-month period ended June 30, 2002 of U.S. Dollars 11.0 million, and
an offsetting increase in costs for the same amounts
8
LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE SIX-MONTH PERIODS ENDED
JUNE 30, 2003 AND JUNE 30, 2002
IN THOUSAND OF EURO(1) 2003 2002(2) % CHANGE
----------------------- ---------- --------- --------
NET SALES 1,411,502 1,759,489 -19.8%
COST OF SALES (433,100) (509,485)
GROSS PROFIT 978,402 1,250,004 -21.7%
OPERATING EXPENSES:
SELLING EXPENSES (490,220) (574,341)
ROYALTIES (26,717) (37,274)
ADVERTISING EXPENSES (99,705) (133,197)
GENERAL AND ADMINISTRATIVE
EXPENSES (120,832) (141,815)
TRADEMARK AMORTIZATION (17,684) (18,611)
TOTAL (755,158) (905,238)
OPERATING INCOME 223,244 344,766 -35.2%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES (22,823) (39,872)
INTEREST INCOME 2,403 2,784
OTHER - NET (7,545) (844)
OTHER INCOME (EXPENSES) NET (27,965) (37,932)
INCOME BEFORE PROVISION FOR
INCOME TAXES 195,280 306,833 -36.4%
PROVISION FOR INCOME TAXES (58,691) (92,050)
INCOME BEFORE MINORITY INTEREST IN
INCOME OF CONSOLIDATED
SUBSIDIARIES 136,589 214,784
MINORITY INTEREST IN INCOME
OF CONSOLIDATED SUBSIDIARIES (3,306) (2,431)
NET INCOME 133,283 212,353 -37.2%
EARNINGS PER SHARE (ADS)(1) 0.30 0.47
FULLY DILUTED EARNINGS PER SHARE
(ADS)(1) 0.30 0.47
WEIGHTED AVERAGE NUMBER OF
OUTSTANDING SHARES 449,398,288 452,633,183
FULLY DILUTED AVERAGE
NUMBER OF SHARES 450,547,450 455,497,447
Notes:
(1) Except earnings per share (ADS), which are expressed in Euro
(2) Certain amounts presented in the prior year financial statements have
been reclassified to conform with the current year presentation. Among
them was a reclassification of certain revenue items of the retail
division which were recorded in prior year as a reduction in the related
costs and are now reflected as gross revenues and gross costs. The
effect of this reclassification is an increase in sales for the
six-month period ended June 30, 2002 of U.S. Dollars 23.0 million, and
an offsetting increase in costs for the same amounts
9
LUXOTTICA GROUP
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2003 AND DECEMBER 31, 2002
IN THOUSAND OF EURO JUNE 30, 2003 DECEMBER 31, 2002
------------------- ------------- -----------------
CURRENT ASSETS:
CASH 206,477 151,418
RESTRICTED CASH - -
ACCOUNT RECEIVABLE 417,320 370,234
SALES AND INCOME TAXES RECEIVABLES 5,389 10,956
INVENTORIES 386,675 406,032
PREPAID EXPENSES AND OTHER 51,814 53,385
DEFERRED TAX ASSETS - CURRENT 148,278 148,088
TOTAL CURRENT ASSETS 1,215,952 1,140,113
PROPERTY, PLANT AND EQUIPMENT - NET 470,993 506,545
OTHER ASSETS
INTANGIBLE ASSETS - NET 1,840,653 1,916,526
INVESTMENTS 12,981 12,837
OTHER ASSETS 11,137 10,305
SALES AND INCOME TAXES RECEIVABLES 5 5
TOTAL OTHER ASSETS 1,864,776 1,939,674
TOTAL 3,551,721 3,586,332
CURRENT LIABILITIES:
BANK OVERDRAFTS 463,680 371,729
CURRENT PORTION OF LONG-TERM DEBT 271,492 178,335
ACCOUNTS PAYABLE 202,729 202,897
ACCRUED EXPENSES AND OTHER 302,525 217,883
ACCRUAL FOR CUSTOMERS' RIGHT OF RETURN 8,669 9,130
INCOME TAXES PAYABLE 887 18,748
TOTAL CURRENT LIABILITIES 1,249,982 998,722
LONG TERM LIABILITIES:
LONG TERM DEBT 672,109 855,654
LIABILITY FOR TERMINATION INDEMNITIES 45,041 48,945
DEFERRED TAX LIABILITIES - NON CURRENT 122,502 121,805
OTHER 134,803 133,605
TOTAL LONG TERM LIABILITIES 974,454 1,160,010
COMMITMENTS AND CONTINGENCY:
MINORITY INTERESTS IN
CONSOLIDATED SUBSIDIARIES 10,298 9,705
SHAREHOLDERS' EQUITY:
454,306,200 ORDINARY SHARES AUTHORIZED
AND ISSUED - 447,871,414 SHARES
OUTSTANDING 27,259 27,256
NET INCOME 133,282 372,077
RETAINED EARNINGS 1,156,447 1,018,562
TOTAL SHAREHOLDERS' EQUITY 1,316,988 1,417,895
TOTAL 3,551,721 3,586,332
10
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE SIX-MONTH PERIODS ENDED
JUNE 30, 2003 AND JUNE 30, 2002
- SEGMENTAL INFORMATION -
MANUFACTURING RETAIL
AND (IN THOUSAND OF
IN THOUSAND OF EURO WHOLESALE RETAIL U.S. DOLLARS)
------------------- ------------ ------ ---------------
2003
Net Sales 573,036 940,041 1,038,651
EBITDA 148,207 154,571 170,786
% OF SALES 25.9% 16.4%
Operating income 125,960 121,905 134,692
% OF SALES 22.0% 13.0%
Capital Expenditure 8,515 20,155 22,269
Depreciation
& Amortization 22,247 32,667 36,094
Assets 1,513,608 790,461 909,188
2002(1)
Net Sales 664,673 1,178,838 1,058,593
EBITDA 205,835 217,901 195,675
% OF SALES 31.0% 18.5% 18.5%
Operating income 183,589 176,645 158,628
% OF SALES 27.6% 15.0% 15.0%
Capital Expenditure 52,098 35,785 32,134
Depreciation
& Amortization 22,246 41,255 37,047
Assets 1,525,543 889,525 876,716
INTER-SEGMENTS
TRANSACTION AND
IN THOUSAND OF EURO CORPORATE ADJ. CONSOLIDATED
------------------- --------------- ------------
2003
Net Sales (101,575) 1,411,502
EBITDA (15,072) 287,706
% OF SALES 20.4%
Operating income (24,620) 223,244
% OF SALES 15.8%
Capital Expenditure - 28,670
Depreciation & Amortization 9,548 64,462
Assets 1,247,652 3,551,721
2002(1)
Net Sales (84,018) 1,759,493
EBITDA (1,953) 421,783
% OF SALES 24.0%
Operating income (15,469) 344,766
% OF SALES 19.6%
Capital Expenditure - 87,883
Depreciation & Amortization 13,516 77,017
Assets 1,424,951 3,840,019
Notes :
(1) Certain amounts presented in the prior year financial statements have
been reclassified to conform with the current year presentation. Among
them was a reclassification of certain revenue items of the retail
division which were recorded in prior year as a reduction in the
related costs and are now reflected as gross revenues and gross costs.
The effect of this reclassification is an increase in sales for the
six-month period ended June 30, 2002 of U.S. Dollars 23.0 million, and
an offsetting increase in costs for the same amounts
--------
11
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LUXOTTICA GROUP S.p.A.
By: /s/ Roberto Chemello
------------------------------------
DATE: July 31, 2003 ROBERTO CHEMELLO,
CHIEF EXECUTIVE OFFICER