DE RIGO Reports Sales Results for the First Quarter of 2005
12 Maio 2005 - 11:00AM
PR Newswire (US)
DE RIGO Reports Sales Results for the First Quarter of 2005
LONGARONE, Italy, May 12 /PRNewswire-FirstCall/ -- De Rigo S.p.A.
(NYSE: DER) posted net sales of EUR 130.9 m[1] for the first
quarter of 2005, a decrease of 6.0% as compared with the same
period last year. Highlights of the Group's unaudited sales results
for the first quarter of 2005 include: - Consolidated net sales
were EUR 130.9 m, as compared with EUR 139.2 m posted in the first
quarter of 2004. Foreign currency effects had a negative impact of
1.0% on net sales.[2] - Wholesale & manufacturing sales
amounted to EUR 39.7 m, a decrease of 6.1% from EUR 42.3 m posted
in the first quarter of 2004. Foreign currency effects had a
negative impact of 0.4% on wholesale & manufacturing sales. -
Sales through the retail companies amounted to EUR 95.1 m, a
decrease of 4.8% from EUR 99.9 m posted in the first quarter of
2004. Foreign currency effects had a negative impact of 1.2% on
retail sales. In this release, De Rigo is reporting net sales on a
consolidated basis, as well as sales for each of its two principal
business segments. In calculating its consolidated net sales, De
Rigo has eliminated the intercompany sales between the Group's
business segments, as detailed in the following table: SALES BY
BUSINESS SEGMENT (Euro in millions) 1Q 2004 1Q 2005 1Q 2005 1Q 2005
% change Effect of Sales at % Sales Sales application constant of
constant exchange change exchange rates rates (Non-GAAP) Wholesale
& 42.3 39.7 -6.1% 0.2 39.9 -5.7% Manufacturing Retail 99.9 95.1
-4.8% 1.2 96.3 -3.6% - D&A 63.5 59.1 -6.9% 1.2 60.3 -5.0% - GO
36.4 36.0 -1.1% 0.0 36.0 -1.1% Elimination of -3.0 -3.9 +30.0% 0.0
-3.9 +30.0% Intercompany Sales Consolidated net 139.2 130.9 -6.0%
1.4 132.3 -5.0% sales Consolidated net sales The Group's
consolidated net sales of EUR 130.9 m were broken down as follows:
eyewear sales of EUR 60.2 m, lens sales of EUR 39.6 m, contact lens
sales of EUR 18.7 m and other sales and revenues of EUR 12.4 m, as
compared with sales of EUR 65.6 m, EUR 42.0 m, EUR 18.6 m and EUR
13.0 m, respectively, for the first quarter of 2004. Foreign
currency translation differences had a negative effect on
consolidated net sales, particularly with regard to the translation
into Euro of sales made in Japanese Yen, Pounds Sterling and Hong
Kong Dollars, as the average exchange rate for these currencies in
the first quarter of 2005 was less favourable to the Group than
that during the first quarter of 2004. Analysing consolidated net
sales by geographic area, net sales in Europe amounted to EUR 118.1
m, a decrease of 6.7%, primarily as a result of lower sales through
the Group's retail companies and a decline in wholesale sales in
certain markets. Net sales in the Rest of the World increased by
7.9% to EUR 10,9 m, reflecting the Group's positive results in the
Far East. Net sales in the Americas amounted to EUR 1.9 m, a
decrease of 24.0%, primarily as a result of lower sales in the US
market. De Rigo's overall consolidated net sales results reflected
the contribution of each of the Group's principal business
segments: Wholesale & manufacturing Wholesale &
manufacturing sales amounted to EUR 39.7 m, a decrease of 6.1% from
EUR 42.3 m posted in the first quarter of 2004. Foreign exchange
rates had a negative impact of 0.4% on sales, reflecting the
appreciation of the Euro against certain currencies in which De
Rigo makes sales. Wholesale & manufacturing sales in the first
quarter were impacted by the expiry of the Group's license
agreement with Fendi as of the end of 2004. Management expects that
the negative impact on the segment's sales of the expiry of the
Fendi license will eventually be more than offset by increased
sales under the new license agreements De Rigo has signed with
Chopard, Ermenegildo Zegna, Escada and Jean Paul Gaultier during
the last quarter of 2004 and first quarter of 2005. However,
deliveries of Chopard and Escada branded eyewear have only started
recently, while those of Ermenegildo Zegna and Jean Paul Gaultier
have not yet started. As a result, sales of the new brands
contributed less to the segment's sales during the first quarter of
2005 than those of Fendi-branded eyewear during the first quarter
of last year. Retail Sales through the retail companies amounted to
EUR 95.1 m, a decrease of 4.8% from EUR 99.9 m posted in the first
quarter of 2004. The following table sets forth certain data on the
sales and store network of De Rigo's two retail chains: D&A,
one of the leading retailers in the British optical market and GO,
the leading retail chain in the Spanish optical market. 1Q 2004 1Q
2005 31 Mar 31 Mar 31 Mar 04 31 Mar 05 04 05 EUR in EUR in % Owned
Owned Unit Franchised Franchised Unit millions millions Change
stores stores change stores stores change D&A 63.5 59.1 -6.9%
232 234 +2 143 140 -3 GO 36.4 36.0 -1.1% 143 150 +7 14 20 +6 Total
99.9 95.1 -4.8% 375 384 +9 157 160 +3 Retail D&A's sales were
EUR 59.1 m, a decrease of 6.9% as compared with sales of EUR 63.5 m
posted in the first quarter of 2004. Sales declined by 5.0% in
Pound Sterling terms, less than in Euro Terms, reflecting the
decrease of the Pound Sterling's value against the Euro. Same store
sales per working day in Pound Sterling terms decreased by 4.6%.
Sales of franchised stores during the period amounted to EUR 16.0
m, a decrease of 9.1%; in Pound Sterling terms, sales of franchised
stores decreased by 7.3%. D&A's sales were negatively affected
by a general slowdown in the British optical market, as management
believes D&A has essentially maintained its market share in
value terms; the sales decline also reflected a reduction in the
number of working days during the period due to the Easter holiday
falling in March. At March 31, 2005, D&A operated a network of
234 owned shops and 140 franchised shops. GO's same store sales
continued to grow, rising by 1.2% on top of the 8.4% increase
posted in the first quarter of 2004: two-years same store sales
increase was 9.7%. However, a reduction in the number of working
days due to the Easter holiday falling in March was reflected in an
1.1% decline in GO's total sales, which decreased to EUR 36.0 m
from the EUR 36.4 m posted in the first quarter of 2004. The
chain's sales were also negatively affected by bad weather
conditions during the months of January and February. At March 31,
2005, GO operated a network of 150 owned shops and 20 franchised
shops, having opened a net total of 7 owned shops and 6 franchised
shops during the last twelve months. De Rigo is one of the world's
largest manufacturers and distributors of premium eyewear, the
major optical retailer in Spain through General Optica, one of the
leading retailers in the British optical market through Dollond
& Aitchison and a partner of the LVMH Fashion Group for the
manufacture and distribution of Celine, Givenchy and Loewe eyewear.
De Rigo also manufactures and distributes the licensed brands
Chopard, Escada, Etro, Fila, Furla, Jean Paul Gaultier, La Perla,
Mini and Ermenegildo Zegna, as well as its own brands Police, Sting
and Lozza. [1] The Group reports its results in Euro. On May 10th,
2005, the Euro/U.S. Dollar exchange rate, as fixed by the European
Central Bank, was EUR 1 = USD 1.2854. The financial results
reported in this press release have not been audited by the Group's
independent public accountants and are presented on the basis of
accounting principles generally accepted in Italy ("Italian GAAP").
[2] In addition to reporting its Italian GAAP results, the De Rigo
Group uses certain measures of financial performance that exclude
the impact of fluctuations in currency exchange rates in the
translation of its operating results into Euro. In doing so, the
Group has calculated its sales for the first quarter of 2005 on the
basis of the same average exchange rates used to calculate sales
for the first quarter of 2004. The Company believes that these
non-GAAP financial measures provide useful information to both
management and investors by allowing a comparison of sales
performance on an exchange rate neutral basis. See the table on
page 2 of this release. The De Rigo Group's method of calculating
sales performance excluding the impact of changes in exchange rates
may differ from methods used by other companies. DATASOURCE: De
Rigo S.p.A. CONTACT: For further information, please contact:
Maurizio Dessolis, Chief Financial Officer, Tel +39-0437-7777, Fax
+39-0437-770727 e-mail:
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