Specialist eyewear retailer Luxottica has posted 9% growth for the end of 2010
Specialist international eyewear retailer, Luxottica, has continued its growth off the back of strong performances in the US, posting nine per cent growth for the fourth quarter of 2010.
According to the Italy-based company, work carried out by Luxottica in the US, together with the improving confidence of consumers in that market were the key factors behind the remarkable growth.
Luxottica’s retail division contributed greatly to the result, benefitting from the initiatives taken in previous quarters and, with a renewed focus on the consumer, recording its best performance over the last four fiscal years. Comparable store sales for the fourth quarter were up by eight per cent off the back of strong growth by both the LensCrafters and Sunglass Hut brands, up 5.6 per cent and 18 per cent respectively.
The performance of the wholesale division was also positive in all countries in which the group operates. Overall, the Group’s net sales for the fourth quarter were 1,346.5 million euro, up 16.4 per cent over the same period of the previous year.
“2010 was a year of discontinuities,” Andrea Guerra, CEO of Luxottica said. “The new world in which we find ourselves operating has shown us that success is possible through innovation, investment, determination, simplicity and speed.
“Throughout the year, Luxottica posted increasingly improving results, both in terms of net sales and profitability. The cornerstones of our business model once again proved to be particularly solid and both divisions have thus successfully achieved excellent results.
“Worthy of mention are: the performances of two extraordinary brands - Ray-Ban and Oakley; the continuing recovery of the premium and luxury brands in our portfolio, which include prestigious brands such as Chanel, Prada, Dolce & Gabbana, Tiffany and Burberry; and the exceptional results achieved by Sunglass Hut, the result of hard work and commitment by the new organization, along with the strong performance of LensCrafters, now firmly re-established as a point of reference for the North American optical retail sector after posting for 2010 its highest growth in comparable store sales since 2006.
“I firmly believe that if we keep up this good work, 2011 will prove to be the natural evolution of the year that has just drawn to a close, and Luxottica will thus continue to post solid, stable growth and increased profitability. The start of the new year already looks encouraging.”
In Australia, a region in which the group has placed very high expectations, the company expects that the various initiatives launched in that market will generate further significant improvements in 2011 - the trend is already improving and results are expected to soon go back to being positive.
Despite the US market’s strength, when it came to retail, comparable store sales in the Asia-Pacific region, where the outlook of the retail sector in that market continues to be particularly demanding, were negative, albeit with a continued, marked improvement over previous quarters. However, the trend seen within the quarter was, in turn, positive: in December comparable store sales performance was only slightly negative.
Positive trends were recorded in all the markets with the highest growth rates where the retail division operates, such as China, India, South Africa and the Middle East.
Net sales for the Retail Division were 833.0 million euro, up 17.6 per cent at current exchange rates, and 5.9 per cent at constant exchange rates. For the year, net sales were up by 13.5 per cent at current exchange rates to 3,561.6 million euro.
Story originally posted on inside retailing on 25/01/11 at http://www.insideretailing.com.au/Latest/tabid/53/ID/9971/Australia-key-to-Luxottica-growth.aspx