Luxottica: the economical results of the third quarter 2018

Luxottica’s net sales in the third quarter of 2018 were up 3.5% at constant exchange rates, thanks to the strong performance of the Retail division and e-commerce platforms as well as solid growth in Europe, North America and Asia-Pacific. The positive results were driven by a combined increase in the average unit price and volumes, and by an acceleration of sales of key brands.
The performance improvement in both divisions allowed the group to close the first nine months of the year with sales up 1.3% at constant exchange rates, growing profitability and strong free cash flow generation.
The wholesale net sales in the third quarter were up 0.9% at constant exchange rates (-1.0% at current exchange rates) led by the positive performance in North America and the strong improvement in Europe. During the summer, Europe recovered after a delayed start of the sun season.
The retail sales accelerated compared to the first six months of the year with comparable store sales up 2.8% and net sales up 4.8% at constant exchange rates2 (+4.9% at current exchange rates). This confirms the effectiveness of strategic initiatives aimed at improving the operating model and the ability of the Group’s retail brands to execute them. Europe and North America drove Sunglass Hut sales, up 8% at constant exchange rates. Positive sales were also driven by LensCrafters in North America, OPSM in Australia and Ray-Ban stores all over the world.
In the third quarter, sales from the group’s e-commerce platforms were up by 16% at constant exchange rates. Ray-Ban.com confirmed it is the main driver of the group’s online business, benefiting from the exclusive launch of special collections and the brand-new campaign for Ray-Ban Studios, which strengthens the link between the brand, music and millennials. SunglassHut.com and Oakley.com contributed to the excellent performance of the online business as well.

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