Luxottica 2nd-Quarter Profit Falls 39% on Lower Sales

Luxottica Group SpA, the world's largest producer and distributor of eyewear, said second-quarter profit fell 39 percent after sales of sunglasses fell because of bad spring weather in North America and a slow economic recovery deterred consumer spending.

Net income declined to 67.7 million euros ($78 million), or 15 cents a share, in the three months ended June 30, compared with 111.3 million euros, or 24 cents, in the year earlier quarter, the company said in a PRNewswire statement. Sales declined by a fifth to 707 million euros.

The Milan-based company is boosting revenue through new licenses and acquisitions of retail chains after ending an agreement to make glasses for Giorgio Armani SpA last year. Luxottica last week announced a 10-year agreement to make and distribute eyewear for Italian fashion company Prada Holding NV.

"We expect to return to approximately 15 percent growth in sales and in earnings on 2004, a result of the significantly strengthened brand portfolio." said Chairman Leonardo Del Vecchio.