Segment information

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We operate in two industry segments:

  • Wholesale
  • Retail

In the second quarter of 2018, Luxottica’s net sales accelerated, growing by 1.4% at constant exchange rates2 (-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 rates2, -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 rates2 (-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 rates2 (-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 rates2, grew in its main geographies. Retail brands in China, including Ray-Ban stores, and Australia confirmed a strong increase in sales. In North America, LensCrafters’ 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 rates2. 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.

Segmental information - 1H 2018

KEY FIGURES IN THOUSANDS OF EUROMANUFACTURING AND WHOLESALERETAILINTER-SEGMENT TRANSACTIONS AND CORPORATE ADJ.CONSOLIDATED
2018
NET SALES 3,504,852 2,821,645   4,552,547
OPERATING INCOME 462,152 410,523 (109,989) 762,686
% OF SALES 26.7% 14.5%    16.8%
CAPITAL EXPENDITURES 152,101 89,436   241,537
DEPRECIATION AND AMORTIZATION 79,845 126,868 44,455 251,168
2017 1
       
NET SALES 1,914,516 3,017,116   4,931,632
OPERATING INCOME 532,516 448,927 (112,905) 868,538
% OF SALES 27.8% 14.9%   17.6%
CAPITAL EXPENDITURES 127,656 103,937   231,594
DEPRECIATION AND AMORTIZATION 89,563 142,200 45,347 277,110

(1) For further information, please see the press release

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Last updated: Jul 23 2018