Milan, Italy - February 15, 2005 - Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX),
global leader in the eyewear sector, today announced consolidated U.S. GAAP results for the
three- and twelve-month periods ended December 31, 2004. Consolidated results for the
quarter and the full year include the consolidation of the Cole National business as of
October 4, 2004.

Consolidated financial highlights

Fiscal Year 2004

• Sales: €3,223.9 million (+14.1%, +21.6% assuming constant exchange
  rates¹)
• Retail sales: €2,315.8 million (+15.7%); Retail comparable store sales²: +4.2%
• Wholesale sales: €1,094.3 million (+10.0%)
• Operating income: €492.8 million (+14.1%); Operating margin: 15.3%
• Retail operating income: €310.3 million (+15.0%); Retail Operating margin: 13.4%
• Wholesale operating income: €233.1 million (+22.0%); Wholesale operating margin:
  21.3%
• Net income: €286.9 million (+7.3%); Net margin: 8.9%
• Earnings per share: €0.64 (US$0.80 per ADS)

Fourth quarter of 2004

• Sales: €941.7 million (+31.0%,+41.7% assuming constant exchange rates³)
• Retail sales: €730.1 million (+37.3%); Retail comparable store sales⁴: +4.1%
• Wholesale sales: €258.2 million (+16.7%)
• Operating income: €104.5 million (+5.5%); Operating margin: 11.1%
• Retail operating income: €74.4 million (+25.0%); Retail operating margin: 10.2%
• Wholesale operating income: €45.4 million (+20.6%); Wholesale operating margin:
  17.6%
• Net income: €59.8 million (+0.2%); Net margin: 6.3%
• Earnings per share: €0.13 (US$0.17 per ADS)

Andrea Guerra, chief executive officer of Luxottica Group, commented: “This was a
particularly strong year for our entire organization, both in retail and wholesale. All our
optical and sun retail brands, from LensCrafters to Sunglass Hut to OPSM Group, performed
well above industry trends, especially in terms of profitability. In wholesale, our strong
fashion and house brands, which include Ray-Ban, the best-selling sun and prescription
brand in the world, continued to strengthen their position in key markets worldwide,
testifying to the overall strength of our portfolio. Within this context, wholesale sales to third
parties rose by 13.2 percent, reflecting an improvement in the trend for the year.”

“During the final quarter of the year, from a retail perspective in North America we focused
on the integration of the important Cole National business, the success of which is key for
our Group. As of today, all is on track with no surprises.”

Strong free cash flow generation was once again one of the main highlights of Luxottica
Group results. In fact, consolidated net outstanding debt as of December 31, 2004, was
€1,711.3 million, compared with €1,470.4 million as of December 31, 2003, reflecting a net
increase of €240.9 million. This result included a total consideration of approximately €600
million for the Cole National acquisition as well as €95.5 million in dividend paid.

For the full year, the tax rate was 35.4 percent, compared with a tax rate of 30.1 percent for
fiscal year 2003.

Forecast for fiscal year 2005

Luxottica Group, based on a €1 = US$1.30 average exchange rate for the full year and an
expected tax rate of between 37 percent and 40 percent, forecasts the following results for
fiscal year 2005:
• Sales: from €4,000 million to €4,150 million
• Earnings per share: from €0.68 to €0.70 (earnings per ADS from US$0.88 to US$0.91)
• Net debt/EBITDA: from 2.0x to 2.2x5
Luxottica Group’s consolidated results for the fourth quarter and fiscal year 2004 were
approved today by its Board of Directors.

About Luxottica Group S.p.A.

Luxottica Group is the world leader in the design, manufacture, marketing and distribution of
prescription frames and sunglasses in mid- and premium-priced categories. The Group’s
products are designed and manufactured in its six facilities in Italy and one in the People’s
Republic of China. The lines manufactured by Luxottica Group include over 2,450 styles in a
wide array of colors and sizes and are sold through 21 wholly-owned subsidiaries in the
United States, Canada, Italy, France, Spain, Portugal, Sweden, Germany, the United
Kingdom, Brazil, Switzerland, Mexico, Belgium, Argentina, South Africa, Finland, Austria,
Norway, Japan, Australia and Poland; one 75%-owned subsidiary in Israel; a 70%-owned
subsidiary in Greece; three 51%-owned subsidiaries in the Netherlands, Turkey and
Singapore, one 49%-owned subsidiary in the United Arab Emirates and one 44%-owned
subsidiary in India. In October 2004, Luxottica Group acquired Cole National Corporation,
one of the largest U.S. optical retailers, operating more than 2,100 retail locations through
Pearle Vision, Sears Optical, Target Optical and BJ’s Optical, and a leading provider of
managed vision care services through Cole National Managed Vision. Prior to that, in
September 2003 the Group acquired control of OPSM Group, the leading eyewear retailer in
Australia, and, in March 2001, Sunglass Hut International, a leading sunglass retailer with
approximately 1,900 stores worldwide. This followed the acquisitions of the Bausch & Lomb
sunglass business, which includes the prestigious Ray-Ban®, Revo®, ArnetteTM and Killer
Loop® brands, in June 1999, and LensCrafters, the largest optical retail chain in North
America, in May 1995. For fiscal 2004, Luxottica Group posted net sales and net income
respectively of €3,223.9 and €286.9 million. Additional information on the company is
available on the web at www.luxottica.com.

Safe Harbor Statement

Certain statements in this press release may constitute “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995. Such statements involve risks,
uncertainties and other factors that could cause actual results to differ materially from those
which are anticipated. Such risks and uncertainties include, but are not limited to,
fluctuations in exchange rates, economic and weather factors affecting consumer spending,
the ability to successfully introduce and market new products, the ability to successfully
launch initiatives to increase sales and reduce costs, the availability of correction alternatives
to prescription eyeglasses, the ability to effectively integrate recently acquired businesses,
including Cole National, risks that expected synergies from the acquisition of Cole National
will not be realized as planned and that the combination of Luxottica Group’s managed vision
care business with Cole National will not be as successful as planned, as well as other
political, economic and technological factors and other risks referred to in Luxottica Group’s
filings with the U.S. Securities and Exchange Commission. These forward-looking statements
are made as of the date hereof and Luxottica Group does not assume any obligation to
update them.

Contacts

Luxottica Group S.p.A.

Luca Biondolillo, Head of Communications
Email: LucaBiondolillo@Luxottica.com

Alessandra Senici, Manager, Investor Relations
Email : AlessandraSenici@Luxottica.com

Tel.: +39 (02) 8633-4665

- TABLES TO FOLLOW -

_________________________
¹ Excludes the impact of fluctuations in currency exchange rates in the translation of operating results
into Euro. See notes to attached tables for more information.
² Comparable store sales are intended as sales that, for comparison purposes, are normalized by
using in the calculation only stores open during the comparable period the previous year, the same
exchange rates and the same consolidation area.
³ Excludes the impact of fluctuations in currency exchange rates in the translation of operating results
into Euro. See notes to attached tables for more information.
⁴ Comparable store sales are intended as sales that, for comparison purposes, are normalized by
using in the calculation only stores open during the comparable period the previous year, the same
exchange rates and the same consolidation area.
⁵ The ratio of net debt to EBITDA is not a measure of performance under accounting principles
generally accepted in the United States (U.S. GAAP). See notes to attached tables for more
information

 

LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE THREE-MONTH PERIODS ENDED
DECEMBER 31, 2004 AND DECEMBER 31, 2003

 

KEY FIGURES IN THOUSANDS OF EURO ⁽⁴⁾

	2004	2003	% Change
NET SALES	941,651	718,682	31.0%
NET INCOME	59,756	59,613	0.2%
EARNINGS PER SHARE (ADS) (2)	0.13	0.13
FULLY DILUTED EARNINGS PER SHARE (ADS) (3)	0.13	0.13

 

KEY FIGURES IN THOUSANDS OF U.S. DOLLARS ^{(1) (4)}

	2004	2003	% Change
NET SALES	1,221,133	853,938	43.0%
NET INCOME	77,491	70,832	9.4%
EARNINGS PER SHARE (ADS) (2)	0.17	0.16
FULLY DILUTED EARNINGS PER SHARE (ADS) (3)	0.17	0.16

_________________________
Notes : (2004) (2003)
⁽¹⁾ Average exchange rate (in U.S. Dollars per Euro) (1.2968) (1.1882)
⁽²⁾ Weighted average number of outstanding shares (448,611,400) (447,989,477)
⁽³⁾ Fully diluted average number of shares (451,054,240) (450,098,499)
⁽⁴⁾ Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively

 

LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE YEARS ENDED
DECEMBER 31, 2004 AND DECEMBER 31, 2003

 

KEY FIGURES IN THOUSANDS OF EURO ⁽⁴⁾

	2004	2003	% Change
NET SALES	3,223,896	2,824,636	14.1%
NET INCOME	286,874	267,343	7.3%
EARNINGS PER SHARE (ADS) (2)	0.64	0.60
FULLY DILUTED EARNINGS PER SHARE (ADS) (3)	0.64	0.59

 

KEY FIGURES IN THOUSANDS OF U.S. DOLLARS ^{(1) (4)}

	2004	2003	% Change
NET SALES	4,008,915	3,193,816	25.5%
NET INCOME	356,728	302,285	18.0%
EARNINGS PER SHARE (ADS) (2)	0.80	0.67
FULLY DILUTED EARNINGS PER SHARE (ADS) (3)	0.79	0.67

_________________________
Notes : (2004) (2003)
⁽¹⁾ Average exchange rate (in U.S. Dollars per Euro) (1.2435) (1.1307)
⁽²⁾ Weighted average number of outstanding shares (448,275,028) (448,664,413)
⁽³⁾ Fully diluted average number of shares (450,360,942) (450,202,173)
⁽⁴⁾ Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively

 

LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE THREE-MONTH PERIODS ENDED
DECEMBER 31, 2004 AND DECEMBER 31, 2003

 

In thousands of Euro (1)	4Q04	% of sales	4Q03	% of sales	% Change
NET SALES	941,651	100.0%	718,682	100.0%	31.0%
COST OF SALES	(315,738)		(225,483)
GROSS PROFIT	625,913	66.5%	493,199	68.6%	26.9%
OPERATING EXPENSES:
SELLING EXPENSES	(351,131)		(271,928)
ROYALTIES	(13,275)		(9,104)
ADVERTISING EXPENSES	(50,720)		(41,691)
GENERAL AND ADMINISTRATIVE EXPENSES	(93,106)		(61,286)
TRADEMARK AMORTIZATION	(13,155)		(10,077)
TOTAL	(521,387)		(394,085)
OPERATING INCOME	104,526	11.1%	99,114	13.8%	5.5%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES	(18,657)		(12,059)
INTEREST INCOME	2,102		2,122
OTHER - NET	11,415		(1,959)
OTHER INCOME (EXPENSES) NET	(5,140)		(11,895)
INCOME BEFORE PROVISION FOR  INCOME TAXES	99,386	10.6%	87,219	12.1%	13.9%
PROVISION FOR INCOME TAXES	(37,632)		(26,490)
INCOME BEFORE MINORITY INTEREST IN  INCOME OF CONSOLIDATED SUBSIDIARIES	61,754		60,729
MINORITY INTEREST IN INCOME  OF CONSOLIDATED SUBSIDIARIES	(1,998)		(1,117)
NET INCOME	59,756	6.3%	59,613	8.3%	0.2%
EARNINGS PER SHARE (ADS) (1)	0.13		0.13
FULLY DILUTED EARNINGS PER SHARE (ADS) (1)	0.13		0.13
WEIGHTED AVERAGE NUMBER OF  OUTSTANDING SHARES	448,611,400		447,989,477
FULLY DILUTED AVERAGE NUMBER OF SHARES	451,054,240		450,098,499

_________________________
 Notes :
⁽¹⁾ Except earnings per share (ADS), which are expressed in Euro

 

LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE YEARS ENDED
DECEMBER 31, 2004 AND DECEMBER 31, 2003

 

In thousands of Euro (1)	2004	% of sales	2003	% of sales	% Change
NET SALES	3,223,896	100.0%	2,824,636	100.0%	14.1%
COST OF SALES	(1,010,793)		(878,340)
GROSS PROFIT	2,213,103	68.6%	1,946,296	68.9%	13.7%
OPERATING EXPENSES:
SELLING EXPENSES	(1,125,942)		(1,008,687)
ROYALTIES	(51,002)		(41,537)
ADVERTISING EXPENSES	(198,102)		(183,252)
GENERAL AND ADMINISTRATIVE EXPENSES	(300,095)		(243,717)
TRADEMARK AMORTIZATION	(45,148)		(37,316)
TOTAL	(1,720,289)		(1,514,509)
OPERATING INCOME	492,814	15.3%	431,787	15.3%	14.1%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES	(56,115)		(47,117)
INTEREST INCOME	6,662		5,922
OTHER - NET	13,792		(799)
OTHER INCOME (EXPENSES) NET	(35,661)		(41,994)
INCOME BEFORE PROVISION FOR  INCOME TAXES	457,153	14.2%	389,793	13.8%	17.3%
PROVISION FOR INCOME TAXES	(161,665)		(117,328)
INCOME BEFORE MINORITY INTEREST IN  INCOME OF CONSOLIDATED SUBSIDIARIES	295,488		272,465
MINORITY INTEREST IN INCOME  OF CONSOLIDATED SUBSIDIARIES	(8,614)		(5,122)
NET INCOME	286,874	8.9%	267,343	9.5%	7.3%
EARNINGS PER SHARE (ADS) (1)	0.64		0.60
FULLY DILUTED EARNINGS PER SHARE (ADS) (1)	0.64		0.59
WEIGHTED AVERAGE NUMBER OF  OUTSTANDING SHARES	448,275,028		448,664,413
FULLY DILUTED AVERAGE NUMBER OF SHARES	450,360,942		450,202,173

_________________________
Notes :
⁽¹⁾ Except earnings per share (ADS), which are expressed in Euro

 

LUXOTTICA GROUP
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2004, AND DECEMBER 31, 2003

 

In thousands of Euro	December 31, 2004	December 31, 2003
CURRENT ASSETS:
CASH	257,349	299,937
ACCOUNTS RECEIVABLE	406,437	353,516
SALES AND INCOME TAXES RECEIVABLE	33,120	34,259
INVENTORIES	433,158	404,216
PREPAID EXPENSES AND OTHER	69,149	50,714
DEFERRED TAX ASSETS - CURRENT	104,508	124,451
TOTAL CURRENT ASSETS	1,303,723	1,267,093
PROPERTY, PLANT AND EQUIPMENT - NET	599,245	497,435
OTHER ASSETS
INTANGIBLE ASSETS - NET	2,473,053	2,093,612
INVESTMENTS	156,988	13,055
OTHER ASSETS	23,040	41,476
SALES AND INCOME TAXES RECEIVABLES	9	5
TOTAL OTHER ASSETS	2,653,089	2,148,148
TOTAL	4,556,057	3,912,676
CURRENT LIABILITIES:
BANK OVERDRAFTS	289,459	516,905
CURRENT PORTION OF LONG-TERM DEBT	404,317	390,935
ACCOUNTS PAYABLE	222,550	178,616
ACCRUED EXPENSES AND OTHER	378,902	218,388
ACCRUAL FOR CUSTOMERS' RIGHT OF RETURN	8,802	7,423
INCOME TAXES PAYABLE	12,721	11,011
TOTAL CURRENT LIABILITIES	1,316,753	1,323,278
LONG TERM LIABILITIES:
LONG TERM DEBT	1,274,905	862,492
LIABILITY FOR TERMINATION INDEMNITIES	52,656	47,241
DEFERRED TAX LIABILITIES - NON CURRENT	215,891	161,102
OTHER	176,486	124,157
TOTAL LONG TERM LIABILITIES	1,719,938	1,194,992
COMMITMENTS AND CONTINGENCY:
MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES	23,760	19,872
SHAREHOLDERS' EQUITY:
455,205,473 ORDINARY SHARES AUTHORIZED AND ISSUED - 448,770,687 SHARES OUTSTANDING	27,312	27,269
NET INCOME	286,874	267,343
RETAINED EARNINGS	1,181,421	1,079,922
TOTAL SHAREHOLDERS' EQUITY	1,495,607	1,374,534
TOTAL	4,556,057	3,912,676

 

LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE YEARS ENDED
DECEMBER 31, 2004, AND DECEMBER 31, 2003
- SEGMENTAL INFORMATION -

 

In thousands of Euro	Manufacturing and Wholesale	Retail	Retail (in thousand of U.S. Dollars)	Inter-Segments Transaction and Corporate Adj.	Consolidated
2004
Net Sales	1,094,298	2,315,783	2,892,712	( 186,185)	3,223,896
EBITDA	280,785	389,903	486,263	( 25,123)	645,564
% of sales	25.7%	16.8%			20.0%
Operating income	233,129	310,340	386,857	( 50,655)	492,814
% of sales	21.3%	13.4%			15.3%
Capital Expenditure	31,367	86,053	107,181	-	117,420
Depreciation & Amortization	47,656	79,563	99,406	25,532	152,750
Assets	1,566,086	1,211,781	1,640,509	1,778,191	4,556,057
2003 As reported
Net Sales	995,109	2,002,264	2,263,960	( 172,737)	2,824,636
EBITDA	236,324	338,456	382,692	( 8,154)	566,626
% of sales	23.7%	16.9%			20.1%
Operating income	191,116	269,851	305,120	( 29,180)	431,787
% of sales	19.2%	13.5%			15.3%
Capital Expenditure	23,580	57,708	65,250	-	81,288
Depreciation & Amortization	45,208	68,606	77,573	21,026	134,840
Assets	1,528,074	876,661	1,104,329	1,507,941	3,912,676
2003 As adjusted (1)
Net Sales	995,109	2,432,255	2,765,475	( 174,080)	3,253,284
EBITDA	236,324	376,625	427,085	( 8,155)	604,795
% of sales	23.7%	15.5%			18.6%
Operating income	191,116	291,418	330,113	( 35,511)	447,023
% of sales	19.2%	12.0%			13.7%
Depreciation & Amortization	45,208	85,207	96,972	27,357	157,772

_________________________
Notes :
⁽¹⁾ These consolidated adjusted amounts are a non-GAAP measurement. The company has included this measurement to give comparative information for the two periods discussed, aligning the consolidation periods of OPSM Group and Cole National for both years 2003 and 2004. They reflect the consolidation of OPSM Group results for the entire year ended December 31, 2003 (as it is in 2004) and the consolidation of Cole National results for the last three months of 2003 (as it is in 2004). This information does not purport to be indicative of the actual result that would have been achieved had the OPSM Group acquisition been completed as of January 1, 2003, and the Cole National acquisition been completed as of October 4, 2003.

 

LUXOTTICA GROUP
NON-GAAP COMPARISON OF CONSOLIDATED NET SALES
FOR THE THREE-MONTH PERIODS AND THE YEARS ENDED DECEMBER 31, 2004,
AND DECEMBER 31, 2003, ASSUMING CONSTANT EXCHANGE RATES

 

In million of Euro	4Q 2003 U.S. GAAP results	4Q 2004 U.S. GAAP results	Adjustment for constant exchange rates	4Q 2004 adjusted results
Consolidated net sales	718.7	941.7	76.4	1,018.1
Manufacturing/wholesale net sales	221.2	258.2	7.8	266.0
Retail net sales	531.8	730.1	72.1	802.2

 

In million of Euro	12M 2003 U.S. GAAP results	12M 2004 U.S. GAAP results	Adjustment for constant exchange rates	12M 2004 adjusted results
Consolidated net sales	2,824.6	3,223.9	209.9	3,433.8
Manufacturing/wholesale net sales	995.1	1,094.3	33.0	1,127.3
Retail net sales	2,002.3	2,315.8	191.1	2,506.9

_________________________
Note:
Luxottica Group uses certain measures of financial performance that exclude the impact of
fluctuations in currency exchange rates in the translation of operating results into Euro. The Company
believes that these adjusted financial measures provide useful information to both management and
investors by allowing a comparison of operating performance on a consistent basis. In addition, since
the Luxottica Group has historically reported such adjusted financial measures to the investement
community, the Company believes that their inclusion provides consistency in its financial reporting.
Further, these adjusted financial measures are one of the primary indicators management uses for
planning and forecasting in future periods. Operating measures that assume constant exchange rates
between the whole year 2004 and the whole year 2003 and the fourth quarter of 2004 and the
fourth quarter of 2003 are calculated using for each currency the average exchange rate for the whole year
and the three-month period ended December 31, 2003. Operating measures that exclude the impact
of fluctuations in currency exchange rates are not measures of performance under accounting
principles generally accepted in the United States (U.S. GAAP). These non-GAAP measures are not
meant to be considered in isolation or as a substitute for results prepared in accordance with U.S.
GAAP. In addition, Luxottica Group's method of calculating operating performance excluding the
impact of changes in exchange rates may differ from methods used by other companies. See table
above for a reconciliation of the operating measures excluding the impact of fluctuations in currency
exchange rates to their most directly comparable U.S. GAAP financial measures. The adjusted
financial measures should be used as a supplement to U.S. GAAP results to assist the reader in better
understanding the operational performance of the Company