MILAN— Luxottica Group (NYSE: LUX) reported record net sales and profits for fiscal year ending Dec. 31, 2014. The company cited the strong performance of its North American wholesale and retail brands as contributing to the performance including improved retail division comparable store sales increases and the overall solid performance of Sunglass Hut as well as its portfolio of licensed and owned brands. The group’s adjusted net sales rose by 6.7 percent at constant exchange rates (5.3 percent at constant rates) to reach €7.6 billion for the year. Adjusted net income for the group rose 11.4 percent to reach €687 million.

In its statement, the company noted, “Along with the strategic organizational decisions made and executed in 2014, these positive results set the foundation for sustainable and profitable growth in 2015 and beyond.”

Commented Luxottica’s new co-chief executive officers, Massimo Vian and Adil Khan, “This is a terrific moment for Luxottica. The acceleration of sales and profitability in the fourth quarter gave us strong momentum going into 2015. We closed another record year of strong sales and profitability growth, we generated an outstanding €802 million in free cash flow, allowing us to pay a cash dividend of €1.44 per share, more than double that of 2013.”

They said, “The power of our brand portfolio continued to be a huge success factor in an increasingly global and complex market. Strong performance in both wholesale and at our major retail businesses, particularly the sustained growth at Sunglass Hut and the progressive improvement at LensCrafters, resulted in a solid, all-around performance. These results are especially gratifying, given that they were achieved in a challenging global economic environment. In 2015, we expect solid revenue growth and profitability to grow twice that of sales, as it has for the past five years, and markets, with bright spots including Ray-Ban, Oakley and Sunglass Hut.”

In 2014, the wholesale division’s net sales rose by 8.6 percent at constant exchange rates to €3.2 billion. The wholesale division’s operating income amounted to €725 million, up by 10 percent from an adjusted €658 million in 2013, resulting in an operating margin of 22.7 percent. In the fourth quarter of 2014, Luxottica’s wholesale Division recorded net sales of €704 million and operating income of €109 million. The company noted that its wholesale division’s performance was led by “outstanding growth in North America, with net sales climbing 11.2 percent in the U.S, which outperformed the market.”

In Europe, the wholesale division posted an increase in net sales of 2.5 percent at constant exchange rates in 2014, primarily due, the company said, to the lack of a sun season in the second half of the year.
.
Emerging markets continued to deliver strong sales performance. 2014 marked the first year of a dedicated subsidiary in Thailand and the entrance into Malaysia, in line with the Luxottica’s go-direct strategy for Southeast Asia. In Latin America, Brazil maintained a steady pace with sales up by 17 percent.

Luxottica’s retail division reported adjusted 2014 net sales which grew by 5.4 percent to €4.5 billion. Comparable store sales were up by 4 percent, largely attributed, the company said, to LensCrafters’ “progressive improvement throughout the year and Sunglass Hut’s sustained growth worldwide.”

In the fourth quarter of 2014, the retail division posted total adjusted net sales of €1.2 billion, up by 11.1 percent at constant exchange rates and 18.5 percent at current exchange rates and experiencing a 5 percent gain in comp store sales for the period. The company noted that the growth in net sales benefited from the impact of the 53rd week on the retail business, which generated net sales of approximately €60 million.

LensCrafters delivered progressive improvements in comparable store sales, which increased by 1.8 percent for the year and by 6.3 percent in the fourth quarter of 2014. Sunglass Hut saw a total sales increase for 2014 of 13.5 percent at constant exchange rates and global comparable store sales up by 7.4 percent, “solidifying its position as the destination for luxury and premium/fashion sunglasses,” management noted.

The Board of Directors has agreed to convene the general meeting of stockholders on April 24, 2015 to approve the 2014 statutory financial statements. The general meeting of shareholders will also consider proposals relating to the election of the members of the board of directors and the board of statutory auditors, as current terms will expire concurrently with the general meeting.