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Luxottica cuts long-term profit guidance

By Don-Alvin Adegeest

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Business

London - Luxottica, the Italian manufacturer and distributor of luxury eyewear, this week stated it would reduce its profit outlook as the company is set to spend 1.5 billion euro to 2018 on improving its onmichannel offer.

Founder and executive chairman Leonardo Del Vecchio said he expected profits to 2018 to grow at 1.5 times sales growth, down from a long-standing guidance of times two, as it plans to spend big on retail and online improvements.

The careful outlook came as the company said 2015 operating profit increased 18.9 percent to 1.4 billion euro as net profit rose 25 percent to 804 million euro.

Luxottica also said Tuesday Francesco Milleri, a long-time associate of the Del Vecchio family, had been appointed to the board "tasked with assisting the executive chairman in carrying out the various functions associated with his current role.”

The move follows the recent resignation of co-CEO Adil Khan although Milleri is not in the frame to take on that vacant task, currently overseen by Del Vecchio.

Luxottica