The Board of Directors of Luxottica Group SpA (MTA: LUX;
NYSE: LUX), a leader in the design, manufacture, distribution and sale of high-end eyewear, by
luxury and sports, meeting today, approved the consolidated results for the second quarter and the
first half ended June 30, 2011 according to the IAS/IFRS accounting principles
Operating performance in the second quarter of 2011
During the second quarter of 2011, both the growth trend and the
Luxottica's investments in its future. In a global macroeconomic context
overall positive, the Group was able to achieve strong results
improvement in all the main geographical areas in which it operates, with performance
particularly solid in Europe, North America and emerging countries. Despite the significant 2
depreciation of the dollar against the euro, from 1,2708 in the second quarter of
2010 at 1,4391 (-12%), the turnover for the quarter exceeded 1,6 billion euro, while
net profit amounted to 162 million: the results for the second quarter of 2011 were
therefore the best in the history of Luxottica.
“The results of the second quarter are particularly valid”, commented Andrea Guerra,
Chief Executive Officer of Luxottica. “We have worked with determination in both
divisions and in all the countries where we operate, achieving on the one hand excellent performance e
on the other, laying the foundations for an even more solid growth. In fact, during the period
we have been able to grow significantly in key markets such as India and
China, Brazil, Mexico and Turkey, countries where we are building a domestic Luxottica, but the
performances were also excellent in Europe, the Middle East, South East Asia and America
Latina: we have continued to invest in our future, opening new stores, strengthening the
our presence in the most promising markets and increasing our efforts to always get closer
more, with a constant dialogue, to the consumer.
At the center, as always, our brands: the premium and luxury segment confirmed the positives
trend at the beginning of the year, with double-digit growth and brands such as Chanel, Prada, Burberry,
Tiffany and Ralph Lauren prominently featured; Ray-Ban, Oakley, LensCrafters and Sunglass Hut have
continued to record very positive performances and, thanks to the great commitment of all
Group organization, OPSM comparable sales in Australia are also back
positive despite a still challenging Australian scenario.
Naturally the dollar exchange has not helped us in absolute terms, but if we look at the
turnover in dollars in a key region such as North America, we note that Luxottica
was able to grow by 7,5% in the quarter.
We are therefore convinced that these results constitute an excellent basis for tackling in the best possible way
the second half of the year”.
During the second quarter of 2011 Luxottica was able to achieve positive performances
in most of the geographic regions where it is present. It deserves to be reported
result of the Wholesale Division, which improved the previous quarters' records by doing
record strong growth in turnover (+11,6% at constant exchange rates); to such performance have
the emerging countries, as well as Europe, led by France, made a decisive contribution
Germany, Spain and Italy which experienced a particularly positive "sunny" season.
The results of Sunglass Hut, which has also been exceptional for the fourth consecutive quarter
benefited from the continuous actions aimed at attracting and retaining new consumers and which it has
inaugurated the first stores in Brazil and China. LensCrafters has once again proved to be the
point of reference in the optical sector in North America, thanks also to significant investments
carried out in new technologies and in laboratories.
Team
In the second quarter of 2011, the Group's turnover showed an increase of 9,5% a
exchange rates (+2,4% at current exchange rates), going from 1.595,1 million euro to 1.633,5 million.
In the first half, therefore, revenues grew by 9,3% at constant exchange rates
(3.189,6 million euros
(2.986,8 million in the first six months of 2010).
Considering the operating performance, EBITDA was up on the year
previous year, going from 335,4 million euros in the second quarter of 2010 to 352,2 million
(+5,0%). Half-yearly, EBITDA went from 578,0 million in the first half of 2010 to
635,1 million.
The operating result amounted to 276,8 million euros (258,3 million in the same period
of the previous year, +7,2%), while the Group's operating margin increased from 16,2% of
second quarter 2010 to 16,9%. In the first six months of the year, the operating result amounted to
484,2 million euros, an increase of 12,7% compared to 429,6 million in the same period
of the previous year.
Net income for the second quarter of 2011 therefore grew to 162,1 million euros (150,1
million in 2010, +8,0%), corresponding to an EPS (earnings per share) of 0,35 euro (at a
average euro/dollar equal to 1,4391). EPS in dollars instead increased by 21,9% to 0,51 dollars.
During the second quarter of 2011, Luxottica's investments in its own grew
future, both in terms of new store openings and in information systems and new technologies:
thanks to the careful control of the working capital, the Group continued in any case in the strong
positive cash generation (154 million euros). Thanks to this result of excellence e
after paying dividends of around 200 million euros in the quarter, net debt at
June 30, 2011 amounted to 2.118 million euro (2.111 million at the end of 2010), with a
net debt/EBITDA ratio (equal to 1,9 compared to 2,0 at the end of 2010.
Wholesale Division
The results for the second quarter of 2011 were the best in the Wholesale Division
history of Luxottica, both in terms of turnover and margins. The Division has confirmed that
knowing how to grow significantly in all the geographical areas in which the Group operates, taking advantage of
opportunities wherever they arise. The basis of this success is the excellent transposition
of the new collections, thanks above all to the ability of the entire organization to create
increasingly close relationships with customers, to enhance the unique and distinctive features of all brands
of the Luxottica portfolio and to provide an excellent level of service.
Furthermore, during the quarter, Ray-Ban and Oakley once again confirmed that they are brands
exceptional and the growth trend of the premium and luxury segment continued, as well as the
STARS program.
The turnover of the division rose to 704,0 million euros from 651,2 million in the second
quarter of 2010 (+11,6% at constant exchange rates and +8,1% at current exchange rates). On a semi-annual basis, the
turnover amounted to 1.345,1 million euros, up 12,5% at constant exchange rates
compared to 1.204,7 million in the first half of 2010 (+11,7% at current exchange rates).
The operating result of the Wholesale division therefore amounted to 188,5 million euros, in
growth of 19,9% compared to 157,2 million in the second quarter of 2010. The operating margin was
increased from 24,1% in the second quarter of 2010 to 26,8%. In the first half, the margin
operating was instead equal to 25,0% (23,0% in the first half of 2010).
retail division
The growth trend of the Division continued during the second quarter, with LensCrafters
and Sunglass Hut, in particular, capable of achieving excellent results: at constant exchange rates, the
Division net revenue grew by 8,0%. The depreciation of the dollar against
however, the euro influenced the translation of the figure, around 80% of which was in the North
America. Net sales at current exchange rates therefore amounted to 929,6 million euros (944,0
million euros in the second quarter of 2010 -1,5% at current exchange rates). In the semester the turnover was 4
therefore amounting to 1.844,5 million euros, up by 7,2% at constant exchange rates compared to
1.782,1 million in the first half of 2010 (+3,5% at current exchange rates).
In terms of comparable sales, the North American optical segment performed well
progress (+3,1%), with LensCrafters reporting an increase in comparable sales
by 5,7%, continuing to benefit from the shares and investments started in recent years
months, and Pearle Vision positive again.
Thanks to the efforts of the whole structure, OPSM comparable sales in Australia scored,
after 6 negative quarters, an increase of 1,2% compared to the same period of the year
previous year, despite the still uncertain context of the Australian market.
Once again the exceptional results of Sunglass Hut, a chain specializing in the "sun" segment
present in numerous geographical areas, which recorded comparable sales
overall growth of 7,8%, with a positive trend in particular in the United States (+9,7%).
Due to the currency effect, the division's operating result increased from 136,6 million
euro in the second quarter of 2010 at 129,8 million (-5,0%); the operating margin therefore passed
to 14,0% from 14,5%. On a half-yearly basis, the operating margin was instead equal to 12,3% (12,6%
in the first half of 2010).
