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UPDATE 2-Luxottica Q1 net down, Q2 start more positive

Published 05/07/2009, 01:54 PM
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* Q1 net sales down 6.2 percent

* Q2 has begun more positively than trend of last few months

* April sales results ahead of last year

(Adds quotes from conference call, details)

By Marie-Louise Gumuchian

MILAN, May 7 (Reuters) - Italian eyewear maker Luxottica posted a 22.5 percent fall in first-quarter net profit on Thursday as the slowdown hit demand, but said the second quarter had started better than the trend of the previous few months.

Luxottica, whose glasses and sunglasses brands include Prada and Ray-Ban, said in a statement net sales fell 6.2 percent to 1.312 billion euros ($1.75 billion).

Net income was 80.4 million euros.

"After the first four months of 2009, we are already seeing a clear difference between the January to February and March to April periods," Chief Executive Andrea Guerra said in the statement. He added that in March and April, results stabilised in North America and improved in nearly all other markets.

Consolidated sales year-to-date were down 3 percent compared with the same period last year, while April group sales were up 9 percent at current exchange rates, Guerra said on a conference call with analysts.

"(Is) every issue, every problem over? No, not at all but on the other side, we feel a little bit better today," he said.

Luxottica, the world's biggest in its field, said consumer attitudes, a rapid reduction in inventories by vendors and the global economic slowdown had hurt demand and the market.

"At the same time, it should be noted that some positive signals are now being seen on all three of these fronts," Luxottica said, adding that the economic environment was still not positive but was improving.

Rival Safilo on Wednesday said first-quarter net profit slumped 87 percent to 1.7 million euros, hit by the consumer slowdown. It expected a difficult second quarter before some possible improvements later in the year.

Last week, Guerra reiterated that acquisitions were not a priority but said proposals were landing on Luxottica's table. In a slide presentation, the company said a few minor external opportunities had already been identified.

Shares closed down 2.16 percent at 14.49 euros before the statement came out. (Additional reporting by Cristina Carlevaro; Editing by David Cowell)

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