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Luxottica Group SpA Message Board

  • maredj2 maredj2 Dec 2, 2006 3:28 PM Flag

    The falling $ and LUX

    Until then, many companies are taking the attitude of Italy's Luxottica Group SpA. Even though more than 70 percent of its manufacturing is done in Italy, the world's largest manufacturer and retailer of eyewear said its business in the United States nearly equals its U.S. costs.

    About 70 percent of Luxottica's revenues are generated in the U.S., where it operates 4,500 Sunglass Hut, Pearle Vision and LensCrafters stores, while 65 percent of its costs are in U.S. dollars. Although the exchange rate shrinks U.S. earnings when they're translated to euros, profit margins aren't affected.

    "Most of our dollar revenue is hedged because a similar portion of our costs are in that currency," said spokesman Luca Biondollilo. "At the end of the day, we have a natural hedge."

54.50-0.10(-0.18%)May 31 4:04 PMEDT