Thu Feb 27, 2014 1:23pm EST
<span id="articleText"/> * Emerging markets to grow faster than developed markets
<span id="midArticle_0"/> * Profits should rise twice as fast as sales - CEO
<span id="midArticle_1"/> * Sees growth in Brazil, China, India, Mexico, Asia, Turkey (Adds further details, comments by CEO, investor)
<span id="midArticle_2"/> MILAN, Feb 27 (Reuters) - Ray-Ban sunglasses maker Luxottica forecast sales and profit growth in 2014, driven by emerging markets, where sunglasses are popular as an affordable luxury purchase.
<span id="midArticle_3"/> Luxottica, which makes eyewear for brands including Prada and Giorgio Armani, said on Thursday developed markets would boost group sales and profitability, but it expected stronger growth in emerging markets.
<span id="midArticle_4"/> Chief Executive Andrea Guerra said Luxottica's "rule of thumb" - whereby profits should grow twice as fast as sales, which themselves should rise by a high single-digit percentage - still applied for the coming year.
<span id="midArticle_5"/> "We have everything in place to make sure 2014 continues the trend of 2013," Guerra told Reuters. Luxottica's sales rose to a record 7.3 billion euros ($10 billion) in 2013.
<span id="midArticle_6"/> The company makes over half its sales in North America, where it owns optical retail chain Lenscrafters.
<span id="midArticle_7"/> It said on Thursday, however, that countries including Brazil, China, India, Mexico, Turkey and those in South-East Asia should see compound annual sales growth of 15-25 percent by 2016 and account for half its sales of frames in five years.
<span id="midArticle_8"/> Luxottica's "growth story is all about taking these brands to emerging markets," said Rahul Sharma, managing director at Neev Capital in London.
<span id="midArticle_9"/> "Sunglasses are one of the first touchpoints for aspirational shoppers both in the east and the west."
<span id="midArticle_10"/> Luxottica posted fourth-quarter net profit of 25.9 million euros, depleted by a one-off tax payment and an allocation of funds to cover taxes in the coming years.
<span id="midArticle_11"/> It said adjusted net profit rose 9.1 percent to 92.6 million euros. Sales rose 0.8 percent at current exchange rates to 1.65 billion euros in the quarter.
<span id="midArticle_12"/> Guerra brushed off concerns over volatility in emerging markets like Turkey which has crimped profits there for other companies.
<span id="midArticle_13"/> "Up to the present moment, no," Guerra said when asked if he had seen any problems in Turkey. "We cannot ever imagine growth in emerging markets rising infinitely in a straight line - it comes in steps."
<span id="midArticle_14"/> Guerra said the company hoped to reach 10 billion euros in annual sales in the next three or four years: "We have the ambition finally to reach that figure."
<span id="midArticle_15"/> ($1 = 0.7309 euros) (Reporting by Isla Binnie; Editing by Danilo Masoni and Mark Potter)
<span id="midArticle_16"/>
<span id="articleText"/> * Emerging markets to grow faster than developed markets
<span id="midArticle_0"/> * Profits should rise twice as fast as sales - CEO
<span id="midArticle_1"/> * Sees growth in Brazil, China, India, Mexico, Asia, Turkey (Adds further details, comments by CEO, investor)
<span id="midArticle_2"/> MILAN, Feb 27 (Reuters) - Ray-Ban sunglasses maker Luxottica forecast sales and profit growth in 2014, driven by emerging markets, where sunglasses are popular as an affordable luxury purchase.
<span id="midArticle_3"/> Luxottica, which makes eyewear for brands including Prada and Giorgio Armani, said on Thursday developed markets would boost group sales and profitability, but it expected stronger growth in emerging markets.
<span id="midArticle_4"/> Chief Executive Andrea Guerra said Luxottica's "rule of thumb" - whereby profits should grow twice as fast as sales, which themselves should rise by a high single-digit percentage - still applied for the coming year.
<span id="midArticle_5"/> "We have everything in place to make sure 2014 continues the trend of 2013," Guerra told Reuters. Luxottica's sales rose to a record 7.3 billion euros ($10 billion) in 2013.
<span id="midArticle_6"/> The company makes over half its sales in North America, where it owns optical retail chain Lenscrafters.
<span id="midArticle_7"/> It said on Thursday, however, that countries including Brazil, China, India, Mexico, Turkey and those in South-East Asia should see compound annual sales growth of 15-25 percent by 2016 and account for half its sales of frames in five years.
<span id="midArticle_8"/> Luxottica's "growth story is all about taking these brands to emerging markets," said Rahul Sharma, managing director at Neev Capital in London.
<span id="midArticle_9"/> "Sunglasses are one of the first touchpoints for aspirational shoppers both in the east and the west."
<span id="midArticle_10"/> Luxottica posted fourth-quarter net profit of 25.9 million euros, depleted by a one-off tax payment and an allocation of funds to cover taxes in the coming years.
<span id="midArticle_11"/> It said adjusted net profit rose 9.1 percent to 92.6 million euros. Sales rose 0.8 percent at current exchange rates to 1.65 billion euros in the quarter.
<span id="midArticle_12"/> Guerra brushed off concerns over volatility in emerging markets like Turkey which has crimped profits there for other companies.
<span id="midArticle_13"/> "Up to the present moment, no," Guerra said when asked if he had seen any problems in Turkey. "We cannot ever imagine growth in emerging markets rising infinitely in a straight line - it comes in steps."
<span id="midArticle_14"/> Guerra said the company hoped to reach 10 billion euros in annual sales in the next three or four years: "We have the ambition finally to reach that figure."
<span id="midArticle_15"/> ($1 = 0.7309 euros) (Reporting by Isla Binnie; Editing by Danilo Masoni and Mark Potter)
<span id="midArticle_16"/>
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