The Board of Directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear, met today to review consolidated net sales and preliminary results for the fourth quarter of 2013 and full fiscal year in accordance with IAS/IFRS standards.
Milan, Italy January 29, 2014Net Sales Performance for the Full Year and the Fourth Quarter of 2013
Luxottica set a new net sales record for the full year 2013 of more than Euro 7.3 billion, an increase of +7.5% at constant exchange rates(2) and +3.2% at current exchange rates compared to 2012. This result is attributable to the solid organic growth which has been pursued with determination since the beginning of 2013 and throughout the entire year.
In particular, Luxottica achieved excellent results for the third consecutive year in emerging markets with an increase of over +20% at constant exchange rates(2,4), with peaks of excellence in China, Brazil and Turkey. Total net sales in North America increased by +3.5% in U.S. dollars, driven in particular by the outstanding performance of the Wholesale Division (+6.7% in U.S. dollars; +12.0% in U.S. dollars excluding a drop in Oakley sales in its military business to the U.S. Army). Luxottica also reported a marked increase in net sales in Europe of +11% at constant exchange rates(2,4) compared to the full year of 2012.
“We have closed another record year, achieving solid performances in 2013 across all of the geographic areas in which we operate, with peaks of excellence in emerging markets and Europe. Growth also continued in North America, where the Wholesale Division and Sunglass Hut achieved particularly positive results.” Commented Andrea Guerra, Chief Executive Officer of Luxottica.
“We have been heavily focused on all the emerging countries that are key to our future growth, from Brazil to India and to China, and the results achieved are reflective of our efforts. The most surprising result for us was the +11% at constant exchange rates(2,4) increase in net sales in Europe. Our team of people in that region has been doing an outstanding job in terms of strategy, service and proximity to both our clients and final consumers.”
“Based on the strong increase in net sales, we do expect that the growth in the operating profitability of both Divisions and consequently of the Group will be aligned to the growth reported in the first nine months of 2013.”
“Our constant and rigorous control of working capital allowed us to generate strong free cash flows, which we used to reduce our net debt and to strengthen our balance sheet. These results reported today confirm the solidity of the Group’s business profile.”
“2014 looks like it will be another year when we believe that we will perform very well. Our engines of growth are clearly defined: a healthy portfolio of brands, an enlarged footprint covering world markets, and a team of people who are very efficient and motivated. To date, the beginning of 2014 is extremely encouraging.”
In the fourth quarter of 2013, net sales amounted to Euro 1.6 billion up +7.6% at constant exchange rates(2) and +0.8% at current exchange rates compared to the results recorded in the same period of 2012. Luxottica’s quarterly results reported at current exchange rates continued to be affected by the ongoing weakening of several currencies against the Euro.
The Wholesale Division grew each quarter throughout 2013. In particular, the emerging markets and the Travel Retail channel reported excellent results increasing respectively +22.4% at constant exchange rates(2,4) and +25.3% at constant exchange rates(2,4) from the prior year. Europe also delivered solid results (+8.5% at constant exchange rates(2,4), with significant growth especially in Germany and France. Net sales in the United States were positive up by +6.7% in U.S. dollars.
Ray-Ban continued to be a global leader delivering exceptional results in 2013. Oakley once again exhibited a solid growth in Europe and reported excellent, double-digit results in emerging markets.
The launch of the Giorgio Armani eyewear collections was executed achieving results aligned to expectations, and the premium and luxury segment grew consistently throughout the year.
The Wholesale Division’s net sales for the fourth quarter of 2013 amounted to Euro 644 million, marking an increase of +11.6% at constant exchange rates2 and +5.4% at current exchange rates compared to the same quarter of 2012. The Division’s net sales for the full year were Euro 2,991 million, compared to Euro 2,773 million in the same period of 2012, an increase of +12.0% at constant exchange rates(2) and +7.9% at current exchange rates.
For the full year 2013, the Retail Division reported net sales of Euro 4,321 million which were on par with the Division’s results reported for the full year 2012 (+4.7% at constant exchange rates(2).
Sunglass Hut celebrated another year of extraordinary growth, reporting total net sales which were up by +11.2% at constant exchange rates(2,4). Excellent trends in comparable store sales(3) were achieved in the United States, Europe, Australia, South Africa and Brazil during 2013.
During the year, the Retail Division’s optical segment reported especially strong performance in emerging markets, most notably in China and Hong Kong, where comparable store sales(3) increased at a double-digit rate, and in Latin America. Strong performance was also reported by OPSM in Australia where comparable store sales(3) were up +4.9%.
In the fourth quarter of 2013, the Retail Division’s comparable store sales(3) grew by +3.0% over the same period in 2012 driven by emerging markets and Europe.
The retail calendar in North America was affected in the quarter by a shorter number of shopping days for the sun segment of the Division and by less insurance days for LensCrafters. The fourth quarter of 2013 completes a year of transition for LensCrafters which reported comparable store sales(3) of -1.6% in the fourth quarter but delivered an increase of +1.0% for the full year 2013.
Against this challenging retail backdrop, Sunglass Hut stood out reporting once again a stellar performance in the fourth quarter and for the full year, with comparable store sales(3) up by +5.1% and +5.9% respectively.
Luxottica’s full 2013 financial results will be reviewed by the Board of Directors on February 27, 2014 and discussed the following day on Friday February 28, 2014 at 09:00 AM (GMT+1) during a presentation to the financial community to be hosted in Milan (Italy).
This presentation will be available through live webcast at http://www.luxottica.com.
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