(20 October 2016)
LUX Business Summary
The Company designs, manufactures and distributes fashion, luxury and sport/performance eyewear. It operates in two industry segments; manufacturing and wholesale distribution; and retail distribution.
- Price to Earnings: 25.10
- Earnings Per Share: $1.92
- Market Cap: 22.0B
- Current Ratio: 1.37
- Return on Equity: 15.28%
- Dividend Yield: 1.24%
- Total Debt to Equity Ratio: 34.56
Income Statement (Euros in Thousands)
- Net Sales increased 1,184,261.
- Gross Profit increased 923,520.
- Income from Operations increased 218,832.
- Net Income increased 160,859.
Cash Flow Statement (Euros in Thousands)
- Cash Flow Provided by Operating Activity increased 233,534.
- Cash and Cash Equivalents at end of period increased $30,809.
- Net Cash Used in Investment Activity increased 24,063.
- Net Cash used in Financing Activities increased 1,426,558.
Balance Sheet (Euros in Thousands)
- Total Current Assets decreased 338,586.
- Total Assets increased by 54,851.
- Total Current Liabilities decreased 481,840.
- Total Stockholder’s Equity increased 488,940.
Highlights from Report
- On April 16, 2015, the Group acquired the remaining 49% of Luxottica Netherlands for a total purchase price of Euro 19.0 million. The difference between the consideration paid and the net assets acquired, equal to Euro 15.4 million, was recorded as a reduction of the Group’s stockholders’ equity.
- On November 1, 2015, the Group acquired certain assets from Sunglass Warehouse, Inc. (“SGW”). Management determined the transaction to be a business combination in accordance with IFRS 3. The final purchase price paid by Sunglass Hut was approximately USD 23.3 million (Euro 21.0 million).
Entry and Exit Points
Final Thoughts & Comments
- Strong balance sheets, income statements, and cash flows.
- Trading right above entry point.
- Since October ’15 high of 72, the stock price has fallen significantly, virtually a linear progression downward, with one brief hiccup from 54 – 56.
- I would buy at these levels and look to sell around $65, which it has traded at twice, reaching a double top over the course of three months apart last year.