This excerpt taken from the LUX 6-K filed May 12, 2009.
For fiscal year 2008, net sales by the retail distribution segment were euro 3,109.1 million compared to euro 3,262.3 million in 2007. The 4.7% decrease was largely due to the strengthening of the euro against the US dollar (reducing net sales by euro 228.3 million) and to a 6.8% decrease in comparable store sales (1) in North America. The negative effect of exchange rates was partially offset by the inclusion of Oakleys retail results (euro 170.9 million).
Pro forma (2) retail net sales in 2008 was down by 8.8% from 2007 due to both the strengthening of the euro, with a negative impact of euro 228.3 million, and to poor performance overall in the retail distribution segment, which lost euro 70.5 million (2.1%) as demand contracted.
Geographically, the contraction in sales in North America, where traffic through stores had begun to slacken at the beginning of the year, was offset by a substantially positive performance by the segment in all other regions.
Net sales by the North American retail division accounted for 83.6% of total retail net sales worldwide against 84.1% in 2007. In US dollars, net sales in North America rose 1.6% from US$ 3,763.7 million in 2007 to US$ 3,822.3 million in 2008 thanks primarily to the inclusion of the Oakley business. In euros, on the other hand, performance was negative, with net sales falling 5.3% due to the strengthening of the euro against the dollar.
In the optical business, comparable store sales (1) by LensCrafters and Pearle Vision were down 6.5%, while sales by licensed brand chains fell 9.1% in 2008.
The sun business, on the other hand, proved less cyclical. Comparable store sales by Sunglass Hut across the globe were down 4.9% year over year in 2008, with a marked difference between results in North America and other regions, such as Australia and New Zealand (which grew by around 4.5%).
(1) Comparable store sales reflects the change in sales from one period to another that, for comparison purposes, includes in the calculation only stores open in the more recent period that also were open during the comparable prior period, and applies to both periods the average exchange rate for the prior period and the same geographic area
(2) Pro forma data reflects the inclusion of results by Oakley, Inc., a subsidiary that was acquired in November 2007, as if it had been acquired on January 1, 2007.
The operating income for the retail distribution segment in 2008 was euro 291.5 million, down 19.4% from euro 361.8 million in 2007. The pro forma (1) operating margin dropped to 9.4% in 2008 from 11.1% in 2007.
The expansion of the retail distribution segment proceeded without interruption, especially in terms of opportunities in emerging markets. The Sunglass Hut brand began operations in 2008 in Thailand and India under two franchising agreements with high profile local partners. In Thailand, the Group plans to launch its initial operations in this important tourist destination by opening 15 new retail locations with Diethelm Keller Limited. In India, it is planning to have 100 retail locations, at full capacity to be operated under franchise by DLF, and these, like the new Sunglass Huts in Thailand, will be added to the 216 retail locations already operating in the Asia-Pacific region (which includes Australia, New Zealand, Hong Kong and Singapore).
In the meantime, retail presence in Europe was given new impetus by the full consolidation of David Clulow, the highly successful UK chain operating in both the sun and optical businesses. In North America, where the BJs Optical store contract expired in March 2008 and was not renewed, the retail division initiated rationalization and refocusing programs.
(1) Pro forma data reflects the inclusion of results by Oakley, Inc., a subsidiary that was acquired in November 2007, as if it had been acquired on January 1, 2007.
This excerpt taken from the LUX 6-K filed Jun 4, 2008.
Luxottica Groups retail division includes:
· Ilori, LensCrafters, Pearle Vision (owned and franchise stores), Sears Optical, Target Optical, Sunglass Icon, Oakley Stores and Vaults, The Optical Shop of Aspen and Oliver Peoples shops in North America, where the Group is a leading retailer in optical products;
· OPSM, Laubman & Pank, Bright Eyes and Budget Eyewear stores in Australia and New Zealand, guaranteeing the Groups leadership in this region with 910 stores;
· Sunglass Hut, the worlds leading and widest reaching specialty premium sun retail chain, has 2,000 stores mostly in North America, Asia-Pacific, the Middle East and the UK; and
· a network of approximately 250 stores in China and Hong Kong.
In 2007, the retail division, excluding Oakley, saw a slight (1.8%) contraction in its revenues to Euro 3.2 million, mainly due to the unfavorable trend in the Euro/Dollar exchange rate. On a comparable exchange rate basis, revenues would have grown 5.6%. Further, on a comparable number of stores, exchange rate and consolidation area basis, and including Oakley, sales increased by 1.2% despite the ups and downs in the North American market. In Australia and China, two major markets for the Group, sales were stable. Sunglass Hut continued to develop in all the countries in which it operates: over the last three years it has recorded 40% growth on comparable stores, exchange rates and consolidation area basis.
Operating income in the retail business (excluding Oakley) amounted to Euro 362 million, down 16.2% from the previous year, while its ratio to sales (operating margin) was 11.2%.
In 2007, the Groups retail business benefited from its major investment plan, mainly focused on
point of sale, which laid the foundation for future growth. Around 700 stores were totally renovated and 581 new points of sale were added (413 from new openings and 597 from acquisitions, Oakley retail chains included).