Q1 2010 earnings http://www.neag.co.uk/burberry-accessories/burberry-handbags.html call records

http://www.neag.co.uk/ Good morning.Is actually the chorus call conference operator.Welcome and thank you for joining luxottica's first quarter 2010 results business call.Remember all participants are in listen only mode.After the presentation there will be a way to ask questions.Typical that the conference will last one hour. (Guidelines)At this time i would wish to turn the conference over to ms.Alessandra senici, group investor associations director.Please don't wait, madam.Regards, driver.Good afternoon and i appreciate you for joining us today.Here beside me are andrea guerra and enrico cavatorta.Past we begin, first i have a several quick items http://www.neag.co.uk/burberry-women/burberry-bikinis.html to cover.Once again, a slide presentation which we will informally follow during this call is accessible for download from our website under the reading investor relations presentation section.This public speaking event includes certain non gaap financial information within the meaning of regulation g under the us securities exchange act.Further information including vacationer tax required by regulation g is also available in luxottica group's press release relating to its results for the first quarter of 2010, which may be found on our website under the reading investor relations pr campaigns section.This business call is being recorded and is also available via audio webcast from our website.During the duration of today's call, certain forecasts or other forward looking statements may be made regarding luxottica group's future financial performance or future events.We wish to caution you that such forecasts or statements are based upon current information and expectation, and actual results may differ materially from those projected in the forward looking boasts.Ask for more about such forward looking statements on page two of the slide presentation.These filings contain vacationer tax concerning factors that could cause actual results to differ materially from those contained in management's projections or forward looking statements.Definitely, as mentioned in the news release issued on april 16, starting in 2010 we will report our financial results as per the international accounting and reporting standards.We shall start with our ceo, andrea guerra.Many thanks, alessandra, and you are introducing our q1 business update and review.We called it a sound start of year, and obviously i totally realize this.Group revenues are up by 6%, 7% at constant fx rates.And i would say that we had a solid start and probable start in all our main regions.At wholesale prices is back to double digit growth.As imaginable, it is essentially more volume and a little bit negative on price mix.But assuredly, how much products that we put in place and launched in the market gave the proper results.Store sales are up mid single digits.Solid in europe, chiefly our main two chains lenscrafters plus 6.6, Sunglass Hut almost plus 11 regarding the worst quarter of 2009, Which was if going correctly something around minus 16.I would say that us could be, i would say at the end quite incredible.Improving on an ongoing basis and having a very strong, sound valentines, then result, then spring, and also easter.Australia wide instead we had some challenges on both sun and retail sun and optical.I always remind you that basically australian execution in all 2009 has been superior and positive;And i am not putting too much emphasis on this.In order, group marketing up by 6.Carrying out work income up by 11.And net gain up by 20 in usd, so basically excluding any kind currency effect of the dollar;It truly is plus 28%.For the second year one after, we have been capable of taking seasonality away in our free cash flow generation.We were able again in q1 to maintain positivity in our free cash flow.So i think that as i said in london the overall efficiency of 2010 is in our hands, and following your first four months i would say i am happy about it.I will give now and turn the word to enrico so that he can provide you with some details on numbers.Web site, andrea.I would likely like to add comment on q1 p results.That we had margin innovations on both divisions, most importantly on the wholesale than retail.Without a doubt, part of it is due to our better functioning that was 10% in wholesale versus 10.5 in service.And even if i look at constant forex rates, third party number, low cost was up 9% and retail 5.5%.Consequently our margin grew by up to 80 basis points in wholesale and 30 basis points in retail.Yr after in q1 '09, discount this as being recall it was the worst quarter for our wholesale division.And many accruals for, as an example, incentive payment or bonus scheme or other costs related to the entire usefulness were not accrued last year;And then were then recovered in the past year when the wholesale performance has improved.So the quotation this year versus last year is affected also by that one.Typically excluding that effect, the comparisons this year would have looked more favorably than it is.Post, our employed income growth is almost double our sales growth;And our net income growth is almost the amount of momey is more than three times our sales growth, right into our expectation and guidance.Even also, if i look at the constant fx rates, our net income in dollar has grown up to four times faster than our net sales.So we are pretty pleased with the p results of q1.Checking out our cash flow, again as andrea mentioned earlier, good free cash flow generation in q1, despite this was in the past until 2008 a negative free cash flow generator for our company due to the seasonality.Most importantly, basically every item of free cash flow generation were in line with our expectation.Unsurprisingly, the capital was a cash drainer, almost double than yr after effect.We have always http://www.neag.co.uk/burberry-men/burberry-shirts.html mentioned many times that last year we had no recurring positive effect on capital that we are not expecting to be recover this year as well.All our indicators anyhow are according to budget.We are in relation to sales of receivables, we are consistent with last year, however with a much bigger sales in the receivable.Our record days are still down versus year ago, and our payable days are up versus last year.So our capital is full under control.In reality, seasonality in q1 plays inside us.Additionally, the tax effect is consistent with our expectation.Such year, we will not see any more good tax effect we had last year.Just for this, our net debt if i exclude the currency effect was basically in step with december, 84 million upwards.We have an 80 million down in terms of interpretation adjustment, so basically would've been flat excluding the exchange rate.

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