Outdoor financials: Oakley posts double-digit growth for Luxottica, plus Under Armour
Luxottica reported a 35-percent jump in third-quarter net profit on strong European sales of eyewear and U.S. revenue from Sunglass Hut, and Under Armour posted a 33-percent increase in net income for the third quarter.
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Oakley posts double-digit growth for Luxottica
Luxottica (MTA: LUX; NYSE: LUX), parent of Oakley, reported a 35-percent jump in third-quarter net profit on strong sales of luxury eyewear in Europe and double-digit growth in U.S. revenue from its Sunglass Hut chain.
Net profit was EUR 101.9 million (USD $142.8 million), up from EUR 75.8 million (USD $106.2 million) in the third quarter of 2009.
Sales rose 20 percent to EUR 1.46 billion (USD $2.04 billion) from EUR 1.22 billion (USD $1.70 billion).
The company said the sale of luxury brands rose more than 20 percent, globally, while proprietary brands Ray-Ban and Oakley each posted “double-digit” growth. It also reported a 13-percent increase in net sales in Europe.
Net sales in U.S. dollars in North America rose 8.5 percent from the third quarter of 2009, boosted by a 13-percent gain at the Sunglass Hut chain, while sales in key emerging markets rose 26 percent, it said.
Oakley sales grew more than 20 percent in Europe, led by France, Italy and Scandinavia, with prescription eyewear sales up by more than 50 percent.
Looking ahead, the company said it might post full-year profit of EUR 400 million (USD $560 million).
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Oct. 25.)
Under Armour Q3 profit rises
A lower-than-expected tax rate and strong apparel sales helped Under Armour (NYSE: UA) post a 33-percent increase in net income for the third quarter.
For the quarter ended Sept. 30, earnings were $34.9 million, or $0.68 per share, compared to $26.2 million, or $0.52 per share, a year earlier.
Revenue climbed 22 percent to $328.6 million, up from $269.5 million, as sales of its men’s, women’s and youth clothing improved, it said.
Direct-to-consumer revenue — which makes up 18 percent of total revenue — grew 47 percent. Footwear revenue fell to $26.5 million from $33 million.
For 2010, Under Armour said it now expects earnings between $1.23 and $1.24 per share on revenue of $1.03 billion to $1.04 billion. It also said its 2011 earnings per share and revenue should both rise at the higher end of its long-term target of 20 percent to 25 percent.
–Compiled by Wendy Geister
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