De Rigo posted net sales of Eur 395.8 m for the first nine months of 2004, an increase of 2.1% as compared with the same period last year.

The Group¡¯s current businesses continued to perform very positively, as comparisons with the prior year were affected by De Rigo¡¯s sale during July 2003 of the controlling interest in Eyewear International Distribution (Eid), a joint venture with the Prada Group. Excluding Eid¡¯s sales from the Group¡¯s results for the first nine months of 2003,2 the period on period increase in consolidated net sales was 7.6%.

Highlights of the Group¡¯s unaudited sales results for the first nine months of 2004 include:
- Consolidated net sales increased by 2.1% to Eur 395.8 m, as compared with Eur 387.8 m posted in the first nine months of 2003. Foreign currency effects accounted for 1.5 percentage points of the overall increase in consolidated net sales;
- Wholesale & manufacturing sales grew by 1.3% to Eur 104.4 m from Eur 103.1 m posted in the first nine months of 2003. Excluding sales made to Eid during the first nine months of 2003 from the comparison, the segment¡¯s sales increased by 3.9%;
- Sales through the retail companies increased by 8.3% to Eur 299.0 m from Eur 276.1 m in the first nine months of 2003, primarily as a result of positive same store sales growth at both General Optica (GO), the Group¡¯s Spanish retail chain, and Dollond & Aitchison (D&A), the Group¡¯s British retail chain.

The Group¡¯s consolidated net sales of Eur 395.8 m were broken down as follows: eyewear sales of Eur 175.4 m, lens sales of Eur 123.9 m, contact lens sales of Eur 58.5 m and other sales and revenues of Eur 38.0 m, as compared with sales of Eur 184.9 m, Eur 109.4 m, Eur 55.3 m and Eur 38.2 m, respectively, for the first nine months of 2003.

Foreign currency translation differences had a positive effect on consolidated net sales, particularly with regard to the translation into Euro of sales made in Pounds Sterling, as the average exchange rate for this currency in the first nine months of 2004 was more favourable to the Group than that during the first nine months of 2003. This increase in the relative value of the British currency more than offset a decline in the average Euro exchange rates for Japanese Yen and Hong Kong Dollars.

Analysing consolidated net sales by geographic area, net sales in Europe increased by 3.2% to Eur 359.7 m, primarily as a result of higher net sales through the Group¡¯s retail companies. Net sales in the Americas decreased to Eur 5.7 m from Eur 9.4 m, primarily as a result of the deconsolidation of Eid. Net sales in the Rest of the World increased by 2.4% to Eur 30.4 m, as the impact of the deconsolidation of Eid was more than offset by very positive results posted by the Group¡¯s Far Eastern distribution subsidiaries.

Wholesale & manufacturing sales grew by 1.3% to Eur 104.4 m from Eur 103.1 m posted in the first nine months of 2003. Excluding net sales made by the wholesale & manufacturing business segment to Eid prior to its sale from the results for the first nine months of 2003, the segment¡¯s sales increased by 3.9% (4.0% at constant exchange rates). The increase in wholesale & manufacturing sales was primarily due to very strong sales results in certain Far East markets, particularly Japan and Hong Kong, as well as in several European markets, including Greece, Spain and Germany.

Sales through the retail companies increased by 8.3% to Eur 299.0 m from Eur 276.1 m posted in the first nine months of 2003.
D&A¡¯s sales grew to Eur 191.5 m, an increase of 8.8% as compared with sales of Eur 176.0 m posted in the first nine months of 2003. Sales grew by 5.6% in Pound Sterling terms, reflecting the increase in its value against the Euro, while same store sales per working day increased by 6.5%. Sales of franchised stores during the period grew by 7.0% to Eur 52.2 m; in Pound Sterling terms, sales of franchised stores increased by 3.7%. The increase in D&A¡¯s sales during the first nine months was primarily attributable to the Company¡¯s aggressive marketing campaigns, which drove increased sales of higher quality products. At September 30, 2004, D&A operated a network of 231 owned shops and 141 franchised shops.
GO grew sales by 7.4% to Eur 107.5 m from the Eur 100.1 m posted in the first nine months of 2003. GO¡¯s continuing to record notable sales gains reflected a 5.6% increase in same store sales per working day as well as the expansion of its owned and franchised store network. At September 30, 2004, GO operated a network of 147 owned shops and 15 franchised shops, having opened a net total of 6 owned shops and 4 franchised shops during the last twelve months.