Luxottica closes the third quarter with a turnover of 2,22 billion euros, up 3,2% year on year. In particular, 800 million come from the Wholesale division (-3,2%) and 1,42 billion from the retail division (+7,2%). At an adjusted level, revenues increased by 1,2%, supported by the retail division (+3,8%) against a 3,2% drop in wholesale. In the first nine months of the year, Luxottica's turnover totaled 6,94 billion (+1,8%), with a contribution of 2,77 billion (-2,3%) from wholesale and 4,17 billion (+ 4,7%) from retail. As a note indicates, "the outlook for 2016 is confirmed".
La adjusted growth marked by revenues of Luxottica in the third quarter, equal to 1,2% at current exchange rates at 2,225 billion, is higher than the consensus of analysts. Estimates, based on what was revealed by Bloomberg, pointed to an average increase in turnover of 0,8% to 2,218 billion. In recent studies, Credit Suisse indicated +1% and Kepler Chevreux 1,1%.
In North America and China the group – explains the note – has adopted stricter commercial policies. The implementation of the "Minimum Advertised Price policy" in North America, with zero discounts from July 60st, "has made it possible to enhance the equity of the brands, bring greater order to distribution and protect the business of wholesale customers". This policy has led to a cut in sales to online operators of over XNUMX%, allowing for a reduction in promotional offers on the e-commerce channel.
In China, the rationalization of distribution with the closure of numerous relationships with independent distributors required, in this first phase, the withdrawal of goods for a value exceeding 30% of the turnover achieved in the quarter. Furthermore, the growth of direct online platforms continued in the quarter with revenues at constant exchange rates up by 18%, with the aim of accelerating their growth in 2017.
In the nine months the turnover of North America remains substantially unchanged at 4,08 billion euro compared to the corresponding period of 2015 (4,09 billion), with wholesale at 788 million (-5,5%) and adjusted retail at 3,29 billion (+1%) . The results for the quarter in the retail sector (+2,4% adjusted and at constant exchange rates) were driven by the increase in turnover of Sunglass Hut and the optical chains, of 8% and 1,8% respectively.
In the quarter, the drop in sales of the Wholesale division of approximately 11% was determined by the MAP policy and by the integration of the Oakley sports channel. Sales in the first weeks of October already show a trend reversal.
In Europe turnover in the nine months rose by 3,3% to 1,36 billion. In Asia Pacific, revenues fell by 1,5% to 873 million. Latin America was also down at current exchange rates (-1,4%) to 382 million, but clearly up at constant exchange rates (+11%). The rest of the world recorded a turnover of 237 million (-8,1%).
IERI (Yesterday) the stock on the stock exchange of Luxottica closed up 1,74%.
