We operate in two industry segments:
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 EURO||MANUFACTURING AND WHOLESALE||RETAIL||INTER-SEGMENT TRANSACTIONS AND CORPORATE ADJ.||CONSOLIDATED|
|% OF SALES||26.7%||14.5%||16.8%|
|DEPRECIATION AND AMORTIZATION||79,845||126,868||44,455||251,168|
|% OF SALES||27.8%||14.9%||17.6%|
|DEPRECIATION AND AMORTIZATION||89,563||142,200||45,347||277,110|
(1) For further information, please see the press release