Luxottica Reports €7.3 Billion in Fiscal 2013 Sales, Record Year

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MILAN— Luxottica Group (NYSE: LUX) reported its consolidated results for the year-ending Dec. 31, 2013. In 2013, Luxottica said that it set a new net sales record of more than €7.3 billion, an increase of 7.5 percent at constant exchange rates and 3.2 percent at current exchange rates, compared to 2012. Luxottica cited its wholesale and retail divisions’ performance and noted that the company achieved excellent results for the third consecutive year in emerging markets, with an increase of over 20 percent, at constant exchange rates, with “peaks of excellence” in China, Brazil and Turkey.

Total group sales in North America increased by 3.5 percent in U.S. dollars, driven in particular by the “outstanding” performance of the wholesale division (which was up 6.7 percent in U.S. dollars, and up 12.1 percent in U.S. dollars excluding a drop in Oakley’s sales to the U.S. Army). Luxottica also reported a double-digit increase in net sales in Europe of 11 percent.

Luxottica's full-year net profit increased by 2 percent compared with 2012, at €544.7 million, but the adjusted net profit grew 10 percent compared with the previous year, to €617.3 million.

The company also reported that its net profit declined to €25.9 million in the last quarter of 2013 due to a tax audit that resulted in increased charges of €26.7 million. Luxottica said that the adjustment is related to the tax audit concerning the year 2007, which resulted in increased charges of €26.7 million for the company. The group has decided to pay the charges and allocate provisions of €40 million for any future similar situation. The company’s board has proposed to raise its dividend to €0.58 a share from €0.49 a share in the previous year.

The company reported fourth-quarter operating income was €164.1 million, up 1.9 percent compared with 2012, and it was €1.056 billion for the full year, up 8.8 percent compared with the previous year.

The wholesale division grew constantly each quarter throughout 2013, with total results for the year up 7.9 percent at current exchange rates, compared to 2012. The wholesale division’s net sales for the fourth quarter of 2013 amounted to €644 million, up 5.4 percent at current exchange rates.

For the full year 2013, Luxottica’s retail division reported net sales of €4,321 million, which were on par with the full year 2012. In particular, Sunglass Hut reported an increase of 11.2 percent in total net sales over 2012 results, at constant exchange rates. The optical retail segment also continued to post “solid” results in emerging markets, with comparable store sales showing double-digit growth in China and Hong Kong, and in Australia, OPSM saw its comparable store sales rise by 4.9 percent. With regard to North America, Luxottica’s statement said, “2013 was a year of transition for LensCrafters, which delivered an increase of 1.0 percent in comparable store sales and a progressive increase in profitability.”

The retail division’s net sales for the fourth quarter of 2013 amounted to €1,002 million, compared to €1,021 million for the same period in 2012.

The company said its delivery of “solid” sales and profitability in 2013 “sets the foundation for another year of growth.” Andrea Guerra, Luxottica Group’s CEO, said, “We have completed another record year, achieving the best results ever for the Group: over €7 billion in net sales, over €1 billion in operating income, over €600 million in adjusted net income. These results once again exhibit our ability to successfully leverage the group’s growth engines and the opportunities available in our industry, which is still young and has huge growth potential.”

Guerra added, “We believe that 2014 will be a natural evolution of the year that has just ended. The early months are delivering positive results despite some bad weather and we believe they will set the stage for sales growth and profitability consistent with prior years. We have clearly identified our growth roadmap and its drivers. Our brand portfolio is increasingly strong, with Ray-Ban continuing to be a global leader in its category and Oakley reporting excellent results in Europe and emerging markets.

“Both the wholesale and retail divisions continue to grow in the premium sunglass segment in North America. Sunglass Hut continues its expansion globally and in new channels, strengthening its role of sunglass category captain. We continue to invest in the optical segment, which affords us solid growth in developed markets and progressive penetration in emerging markets.”