KEY FACTS VIDEO
We operate in two industry segments:
Luxottica's net sales grew by 4.2% (+1.8% at constant exchange rates2) in the first half of 2017, with sustained profitability for both divisions and record free cash flow3 generation.
In the first six months of the year, the Wholesale division recorded sales in line with the previous year (+0.5% at current exchange rates, -1.2% at constant exchange rates2). Europe and Latin America were strong contributors and North America saw a return to growth in the second quarter, despite the residual impact of the "MAP policy" (Minimum Advertised Price). The segment was also affected by business decisions undertaken in Asia-Pacific and in particular in China, where the Group has completed the restructuring of its distribution strategy in the second quarter, focusing almost exclusively on direct and digital channels to better combat counterfeiting and parallel markets.
The Retail division, with sales up 6.8% (+4.0% at constant exchange rates2), benefited from the Group's new strategy focusing on service quality and brand equity, including a strong reduction of in-store promotions and discounts. New stores, optical retail results in all geographies, Ray-Ban stores in China and the consolidation of Salmoiraghi & Viganò in Europe contributed to the positive performance in the period. In addition, Sunglass Hut posted a +1%2 growth in sales in the second quarter, despite a reduction in store count designed to improve geographic allocation and promote store productivity. In North America, the Group’s focus on in-store execution, quality of service, and omnichannel experiences began to pay off with improved comparable store sales4 and profitability in all retail brands.
Segmental information - 1H 2017
|KEY FIGURES IN THOUSANDS OF EURO||MANUFACTURING AND WHOLESALE||RETAIL||INTER-SEGMENT TRANSACTIONS AND CORPORATE ADJ.||CONSOLIDATED|
|% OF SALES||28.5%||14.2%||17.6%|
|DEPRECIATION AND AMORTIZATION||90,852||140,910||45,347||277,110|
|% OF SALES||26.6%||13.3%||16.7%|
|DEPRECIATION AND AMORTIZATION||80,239||125,900||42,840||248,979|
Retail comparable store sales (2)
|2Q 2017||1H 2017|
|Optical North America|
|Sunglass Hut worldwide||-1.4%||-3.1%|
(2,3,5) For further information, please see the press release