MILAN--Luxottica Group is working to grow its key retail brands as well as its wholesale business in the months ahead, as it wraps up the initial stages of integrating the Cole National businesses acquired a year ago into its ongoing operations, according to chief executive officer Andreas Guerra.

In retail, “We’re extremely pleased with what our American team has done in the last 12 months,” Guerra said, noting that at the same time as the Cole integration progressed this year, Luxottica’s existing LensCrafters and Sunglass Hut chains “had their best year in the last five or six years.” And on the retail side in general in the U.S., “we are confident we’re on the right track,” Guerra said. “The reorganization process is over; now we need to execute a fantastic growth plan.”

One focus of that growth plan will be the Pearle Vision chain, according to Guerra. At Pearle, the average transaction is up, aided by an emphasis on premium lenses, and the chain has implemented new promotional activities and labor-saving initiatives. In addition, franchisee support for new advertising, franchising standards and Luxottica products has been good, according to the company.

“We are confident 2006 will be the Pearle Vision year,” Guerra said.

Sunglass Hut, which had double-digit sales growth in the third quarter, is also seen as an opportunity for growth, according to Guerra.

Both Sunglass Hut and LensCrafters are in the midst of an ongoing store remodeling program. As of the end of the third quarter, 146 Sunglass Hut stores had been remodeled this year, with another 44 slated for remodeling by year-end and more in 2006. So far in 2005, 184 LensCrafters locations have been remodeled; another 108 will get facelifts in the fourth quarter, continuing on into next year.

Luxottica’s wholesale business was also strong in the third quarter, Guerra said, with above-average growth in North America and double-digit growth in all European markets. Noted the Luxottica executive, in the third quarter “the wholesale market was positive, but the market was even more positive for us.”

He said the company’s Donna Karan brand, launched early this year, was “right on target,” while the new Dolce & Gabbana collection, for which Luxottica began taking orders Oct. 1, got off to a record strong start.

On the financial side, Luxottica had strong increases in both sales and income in its third quarter and first nine months ended Sept. 30.

The company’s consolidated sales in the quarter rose 47.3 percent to 1,069.4 million Euros ($1,304.3 million U.S.). Retail sales in the period were 849 million Euros, up 55.2 percent; comparable-store sales rose 5.3 percent in the period. Luxottica’s third-quarter wholesale sales were 283.7 million Euros, up 26 percent; sales to third parties increased by 23 percent in the period.

Net income rose 16 percent in the third quarter, to 89.3 million Euros ($108.9 million U.S.).

In the first nine months of 2005, Luxottica did 3,251.9 million Euros ($4,106 million U.S.) in consolidated sales, up 41 percent. Retail sales rose 52.1 percent to 2,448.6 million Euros in the nine-month period; comp-store sales were up 5.7 percent. The company’s wholesale sales reached 978.9 million Euros, up 17 percent.

Net income in this year’s first nine months totaled 256.7 million Euros ($324.15 million U.S.), a 13 percent increase.

Said Guerra, “In the first nine months of 2005, we reached the same level of sales posted in 2004 for the full year, which in itself means that the Cole National acquisition has already helped us to achieve a significant result.”

Within Luxottica Retail, Sunglass Hut experienced double-digit comparable-store sales growth for the second quarter in a row, according to Luxottica. Retail results were also positive in Asia-Pacific, “especially in terms of profitability.”

On the wholesale side, the company said its Ray-Ban brand posted “particularly strong results for the quarter.” Other best-selling brands were Bulgari, Chanel, Prada and Versace.--Cathy Ciccolella