Luxottica's Short, Long Term Outlooks Are Very Different

by: Véronique Adam October 09, 2009




..............................Following two years of declining earnings (-20% in 2008 and -13% projected in 2009), we “only” look for a 10% increase in net profit next year.
  • We estimate that around 55% of Luxottica sales are related to the dollar. Based on current spot rates, the dollar should decline by more than 5% next year, which should impact reported growth.
  • Emerging market exposure remains limited, representing less then 20% of sales on our estimates. Growth in the US should continue to be held back by consumer deleveraging. Pricing pressure in discretionary items is not going to stop.
  • Cost control has been excellent but how long can Luxottica afford to cut marketing expenses?
See all of it at; http://seekingalpha.com/article/1657...source=reuters