This excerpt taken from the LUX 6-K filed May 25, 2007.
(3) 2004-2006 figures include Cole National result since the date of acquisition (October 4, 2004).
(4) Results of Things Remembered, Inc., a former subsidiary that was sold in September 2006, are reclassified as discontinued operations and are not included in results from continuing operations for 2004, 2005 and 2006.
The acquisition of Shoppers Optical, one of Canadas biggest optical chains with 74 stores, improved the Groups presence in this important market. Shoppers Optical is a key player in the Canadian retail prescription segment as well as the only chain with nationwide coverage. The Shoppers Optical stores, located in eight Canadian provinces, were converted to the Pearle Vision brand, which was historically a well-recognized optical retail brand in the United States. Pearle Visions business model and brand is being used throughout Canada.
Luxottica Group also has nine central lens finishing labs that are of strategic importance to its North American retail business as well as EyeMed Vision Care, one of the largest administrator of managed vision care programs for corporations, government agencies and health insurance providers in the United States.
In the sun segment, Sunglass Hut is the biggest and best-known chain in North America with 1,502 stores.
With its organization structure, Luxottica Group is able to quickly respond to market opportunities and trends in fashion and luxury. This ability is especially important in the United States, where demands for fashion and luxury are now a nationwide phenomenon and have moved beyond cities like New York, Miami and Los Angeles.
In the Australia and New Zealand region, Luxottica Group continued to consolidate its direct retail presence. In 2006, the Group further integrated its retail network in the region, where it operates three optical brands: OPSM, Laubman & Pank and Budget Eyewear. At the end of 2006, Luxotticas retail network in the region had 527 stores, with 488 in Australia and 39 in New Zealand.
In China and Hong Kong, Luxottica Group successfully extended and consolidated its retail network. In 2006, with the acquisition of Modern Sight Optics, the Group further expanded its presence in China after its acquisition of the Chinese Beijing Xueliang Optical Technologies and Ming Long Optical chains in 2005. Luxottica Groups direct network in China and Hong Kong reached 270 stores, making it Chinas leading optical and one of its biggest luxury retailers. The Group is well positioned to take advantage of growth opportunities in the near future.
Lastly, Luxottica Group announced the opening of Sunglass Hut franchise stores in the Middle East, which is one of the most promising markets for high-end fashion and luxury products, especially in the Gulf States. Sunglass Hut will operate in major shopping centers, mainly in the United Arab Emirates and Saudi Arabia. New stores will only carry the Groups prestige brands such as Bvlgari, Chanel, Dolce & Gabbana, Prada and Versace, as well as Ray-Ban, the worlds best-selling sun brand.