Luxottica: net sales improve and renewal with Philipp Starck and Starck Eyes
The Board of Directors of Luxottica Group reviewed the consolidated net sales for the second quarter and preliminary results for the six months ended June 30, 2018, in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. In the second quarter of 2018, Luxottica’s net sales accelerated, growing by 1.4% at constant exchange rates (-4.9% at current exchange rates). The results were driven by the strong performance of the Retail division and e-commerce platforms as well as solid growth in North America and Asia-Pacific. This allowed the group to close the first half of the year with sales slightly up (+0.3% at constant exchange rates, -7.7% at current exchange rates) and strong profitability, with record net margin. The Wholesale division’s net sales in the second quarter were down 3.1% at constant exchange rates (-8.2% at current exchange rates) impacted by a temporary slowdown in Europe due to new commercial policies and a delayed sun season. On the other hand, North America and Asia-Pacific each reported strong performance following the restructuring of their distribution network. In the second quarter, the Retail division’s net sales grew by 4.3% at constant exchange rates (-2.8% at current exchange rates) and comparable store sales4 were up by 1.3%, an acceleration compared to the first quarter of the year. This confirmed the effectiveness of strategic initiatives aimed at improving the operating model and the ability of the group’s retail brands to execute them. For the third consecutive quarter, Sunglass Hut, with sales up 5.5% at constant exchange rates, grew in its main geographies. Retail brands in China, including Ray-Ban stores, and Australia confirmed a strong increase in sales. In North America, Lens Crafters’ sales were back to growth, with improving comparable store sales4 even if still slightly negative. The net sales from group’s e-commerce platforms in the second quarter were up by 16% at constant exchange rates. Ray-Ban.com confirmed it is the main driver of the group’s digital business, benefiting in the quarter from the exclusive launch online of special collections, such as Ray-Ban Reloaded, and the brand-new campaign for Ray-Ban Studios, which strengthened the link between the brand, music and millennials. Luxottica renewed the license agreement for design, production and worldwide distribution of prescription frames and sunglasses for the Philippe Starck and Starck Eyes brands. The agreement has a duration of five years and is automatically renewable for a further five years.