This excerpt taken from the LUX 6-K filed May 25, 2007.
LUXOTTICA GROUP IN 2006
The results for 2006 reflect excellent performance in both the retail and wholesale divisions. The wholesale division in particular saw record growth, with sales improving 30.9% to more than Euro 1.7 billion. This strong performance was due mainly to the continued strengthening of the brand portfolio over recent years. The retail division also reported good results, especially in North America, where sales rose nearly 8%, confirming the current strength of the business and its potential for the future.
Ray-Ban, the worlds most recognized and best-selling eyewear brand, posted sales of Euro 1.4 billion (at retail value) thanks to double-digit growth for the fourth straight year, an industry record. The Groups luxury brands, including Bvlgari, Chanel, Dolce & Gabbana, Prada and Versace, also enjoyed vigorous growth of 40%. Geographically, Luxottica Group continued to grow in its main markets. Wholesale sales to third parties in emerging markets grew 60%, indicating the strength of this area for future expansion.
In 2006, Luxottica Groups consolidated sales reached Euro 4.7 billion, up 13.1% from the previous year. Operating results improved overall and in both the retail and wholesale divisions. In terms of profitability, the wholesale divisions margins increased. For 2006, consolidated net income totaled Euro 424.3 million, up 24.0% from 2005. Strong cash flow generation was once again a highlight of the Groups results, reaching Euro 391.0 million for 2006 before dividends, acquisitions and the effects of exchange rates. The Groups net consolidated indebtedness at the end of 2006 was Euro 1,148.5 million, a decrease of Euro 288.9 million from the previous year-end.