Luxottica confirms 2008 guidance

Italian eyewear group Luxottica (LUX.MI: Quote, Profile, Research, Stock Buzz) confirmed its 2008 guidance on Thursday, as expected, and said it saw mid-single digit growth in second quarter sales at current exchange rates, despite tough market conditions.

The world's biggest eyewear group, which saw net profit fall 19 percent in the first quarter -- partly hit by a weak U.S. dollar and the U.S. consumer slowdown -- has forecast sales of 5.6 billion to 5.75 billion euros this year.

It expects earnings per share of 1.11 to 1.14 euros.

"I am more comfortable today than 4 months ago, dealing with these tough times, cost base and efficency," Luxottica Chief Executive Andrea Guerra told analysts on a conference call, which had been announced earlier this week to confirm guidance.

In a slide presentation, it said it saw second-quarter EBITDA margin growth in line with the first quarter. This excludes a non-recurring gain of about 20 million euros related to the sale of a property in the second quarter of last year.

Luxottica, which bought U.S. sports brand Oakley last year, said market conditions remained "tough" with a significantly delayed start of the sunny season in certain Mediterranean countries and U.S. dollar weakness.

Luxottica said it expected a more "normalised" business for the second half of the year. It should meet its full year guidance with "very clear plans" to compensate for a slowdown in certain countries for the wholesale division and said that there would be less of an impact from Oakley-related one-time charges.

It said it expects "good results" from manufacturing, sourcing and supply chains and potentially an improvement in the U.S. dollar and euro exchange rate. Continued...

Investors are looking at luxury goods makers for signs of cooling demand amid a global economic downturn. Some luxury goods groups have felt the impact of weaker sales but have said they expect results to hold up as long as the economic climate does not worsen.

Luxottica shares closed down 5.68 percent at 15.40 euros before the conference call.