Oakley parent reports 60 percent drop in Q4 earnings
Luxottica Group (NYSE: LUX), parent of Oakley, posted a 59.9 percent decline in its fourth-quarter earnings, due to the higher operating expenses and write-downs.
Net income fell to EUR 38.83 million (USD $50.22 million), or EUR 0.08 (USD $0.10) per share, from EUR 96.93 million (USD $125.3 million), or EUR 0.21 (USD $0.27) per share, in the same period in 2007.
The company said the write-off of debt related to the sale of the Things Remembered retail chain impacted earnings by EUR 15.00 million (USD $19.4 million), or EUR 0.03 per share (USD $0.038). In U.S. dollar terms, earnings before trademark amortization dropped 45.7 percent to $0.19 per share. The consensus estimate for the latest third quarter was $0.18 per share.
Luxottica Group's revenue for the quarter grew 4.0 percent to EUR 1.24 billion (USD $1.60 billion) from EUR 1.19 billion (USD $1.53 billion) in the year-ago quarter. The company said it was driven by the appreciation of the U.S. dollar against the euro.
The company said pro forma revenue was down 5.5 percent at a constant exchange rate due to weak demand. In U.S. dollar terms, revenue decreased 5.3 percent year-over-year to $1.63 billion.
Looking at the company's segments, the wholesale division's revenue increased 14.1 percent to EUR 545.79 million (USD $705.90 million), and the retail division's revenue went up 8.8 percent to EUR 776.75 million (USD $1.004 billion).
For FY '08, net sales grew 4.7 percent to EUR 5.20 billion (USD $6.72 billion) from EUR 4.97 billion (USD $6.42 billion) in the previous year, driven by the acquisition of Oakley.
Earnings decreased 22.9 percent to EUR 379.72 million (USD $491.11 million), or EUR 0.83 (USD $1.07) per share, from EUR 492.20 million (USD $636.5 million), or EUR 1.07 (USD $1.38) per share, due to higher operating expenses and write-downs.
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Mar. 12.)
Hibbett Sports' Q4 sales rise 4 percent
Despite a challenging economic climate, Hibbett Sports (Nasdaq: HIBB) said it posted a higher fourth-quarter profit.
For the quarter ended Jan. 31, profit rose to $7.63 million, or $0.26 per share, compared with $7.61 million, or $0.25 per share on more shares outstanding, last year.
Sales for the period increased 4 percent to $147.9 million from $142.8 million. Same-store sales dropped 2.8 percent.
For the year, Hibbett posted a lower profit of $29.4 million, or $1.02 per share, compared with $30.3 million, or $0.96 per share, last year.
Sales rose 8 percent to $564.2 million from $520.7 million.
Looking forward, the company said it expects earnings between $1.03 and $1.17 and comparable store sales in the low single digits for fiscal 2010.
Hanesbrands amends credit agreement
Hanesbrands (NYSE: HBI), parent of Duofold, said it has amended its first-lien credit agreement to ensure it can meet its debt requirements, adding that it has set a goal to reduce long-term debt this year by at least $300 million.
The company said it sought the changes as a precaution to make sure it had an adequate cushion to meet its debt requirements in light of the economic downturn.
Hanesbrands said the amendment delays its most restrictive debt-leverage ratio requirements to the third quarter of 2011 from the fourth quarter of 2009. It applies to the company's $990 million of term loans A and B as well as its revolving credit facility.
Hanesbrands said the amendment also increases the company's interest-rate spread, which is expected to boost net interest expense to about $165 million in 2009, compared with $155 million in 2008.
The company said its new debt reduction goal will bring its total long-term debt to less than $1.9 billion.
--Compiled by Wendy Geister
For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.