Luxottica: Standard & Poor’s revises its outlook from stable to positive and affirms BBB+ rating
Milan (Italy), March 27, 2013 – Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear announced that Standard & Poor’s has affirmed its long-term credit rating of BBB+ and revised its outlook from stable to positive.
Standard & Poor’s announced that the outlook change follows a second straight year of robust operating results, with Luxottica posting double-digit growth in sales and earnings in 2012.
The BBB+ rating on Luxottica reflects its sound business, supported by a leading position in the fast-growing eyewear industry. The rating also reflects Luxottica’s proven ability to generate solid free cash flow, with a new record posted in 2012 of over €700 million.
Overall, Standard & Poor’s assessed Luxottica’s business risk profile as strong owing to the eyewear industry’s fragmented competition and strong growth prospects, especially in emerging markets. Luxottica is well placed to seize on that untapped potential thanks to its vertically integrated business model and solid profitability, with a reported EBITDA margin of about 19% in 2012.