Luxottica reports accelerated growth in the second quarter of 2014: record operating income and free cash flow

Net sales of Euro 2.1 billion (+7.0% at constant exchange rates²)

Operating margin of 19.2% and free cash flow³ of Euro 321 million: an all-time quarterly record

Luxottica Group net sales

• accelerated growth in net sales for the second quarter: Euro 2,060 million (+7.0% at constant exchange rates²)
• net sales for the first half: Euro 3,902 million (+5.6% at constant exchange rates²)
• still unfavorable exchange rate environment

Wholesale Division

• net sales for the second quarter: Euro 935 million (+10.3% at constant exchange rates²)
• strong increase in sales in emerging markets: +20.8% at constant exchange rates^2,6
• accelerating performance in North America compared to the first quarter: +9.9% in USD
• solid growth in Europe: +6.9% at constant exchange rates^2,6
• Ray-Ban and Oakley continue to be major growth drivers
• the premium and luxury segment confirm a structural growth trend

Retail Division

• net sales for the second quarter: Euro 1,125 million (+4.3% at constant exchange rates²)
• faster comparable store sales⁴ growth in the second quarter: +3.8% in North America; double digit growth in emerging markets
• LensCrafters in North America delivered an increase in comparable store sales⁴ of +0.9%
• Sunglass Hut continued to deliver excellent results with global sales on a comparable store basis⁴ of +9.9%

Profitability and free cash flow³

• net income
  • second quarter: Euro 235 million (+15.0%⁵ at constant exchange rates²)
  • first half: Euro 393 million (+12.8%⁵ at constant exchange rates²)
• operating margin up by 80 bps⁵ to 19.2%: an all-time quarterly record (+110 bps⁵ at constant exchange rates²)
• net profit margin of 11.4% up by 60 bps⁵
• positive free cash flow³ of Euro 321 million, an all-time record on a quarterly basis

Start to the third quarter

• net sales growth remains robust, with both Divisions confirming strong demand
• impact from negative exchange rate environment is gradually declining due to a more favorable basis of comparison between the major currencies

The Board of Directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), a leader in the design, manufacture, distribution and sale of fashion, luxury and sports eyewear, met today and approved the consolidated results for the second quarter and the six months ended June 30, 2014 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IAS/IFRS).