Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Luxottica Group SpA    

LUXOTTICA GROUP SPA

SummaryChartsNewsCompany 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

LUXOTTICA ADR : Luxottica Continues on its Strong Growth Path

share with twitter share with LinkedIn share with facebook
07/25/2011 | 11:45am EDT

MILAN, July 25, 2011 /PRNewswire/ -- The Board of Directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear, met today and approved the consolidated results for the second quarter and six months ended June 30, 2011 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IAS/IFRS).


    Second quarter of 2011(1)
    -------------------------
    (In millions of Euro)     2Q 2011  2Q 2010              Change
                              -------  -------              ------
                                                              (at current
                                                              exchange
                                                              rates)

                                                +9.5% at
    Net sales                  1,633.5  1,595.1 constant                +2.4%
                                                exchange
                                                rates(2)

    Operating income             276.8    258.3                         +7.2%

    Net income attributable
     to Luxottica Group
     stockholders                162.1    150.1                         +8.0%

    Earnings per share            0.35     0.33                         +7.6%

    Earnings per share in
     U.S.                        $0.51     0.42       +21,9%
    ---------------------        -----     ----       -----



    First half of 2011(1)
    ---------------------
    (In millions of Euro)   1H 2011  1H 2010              Change
                            -------  -------              ------
                                                              (at current
                                                               exchange
                                                                rates)

                                              +9.3% at
    Net sales                3,189.6  2,986.8 constant                +6.8%
                                              exchange
                                              rates(2)

    Operating income           484.2    429.6                        +12.7%

    Net income attributable
     to Luxottica Group
     stockholders              276.8    245.1                        +12.9%

    Earnings per share          0.60     0.53                        +12.5%

    Earnings per share in
     U.S.                      $0.84     0.71       +19.0%
    ---------------------      -----     ----       -----


Operating performance for the second quarter of 2011

During the second quarter of 2011, both the growth trend and Luxottica's investments in its future continued. In a macroeconomic environment that was, as a whole, positive, the Group has successfully achieved results that show great improvement in all the major geographic areas where it operates, with particularly solid performance recorded in Europe, North America and the emerging markets. Despite the significant depreciation of the U.S. dollar against the Euro, going from 1.2708 during the second quarter of 2010 to 1.4391 (-12%) during the second quarter of 2011, net sales for the second quarter of 2011 exceeded Euro 1.6 billion and net income stood at Euro 162 million, the best results ever recorded in the history of Luxottica.

"The results of the second quarter of 2011 are truly strong," commented Andrea Guerra, Chief Executive Officer of Luxottica. "We worked with great determination and passion in both divisions and in all the countries where we operate, on the one hand achieving excellent performance and on the other laying the basis for an even more solid growth. During the period, in fact, we were able to grow significantly in key markets such as India, China, Brazil, Mexico and Turkey, countries where we are building a strong Luxottica presence. Performance was also excellent in Europe, the Middle East, South East Asia and Latin America, where we have continued to invest in our future, opening new stores, strengthening our presence in the most promising markets and increasing our commitment to relating even more closely to the consumer through constant dialogue.

"As always, our brands are at the heart: the premium and luxury brands have confirmed the positive trends seen during the first quarter of the year, posting double-digit growth, and brands such as Chanel, Prada, Burberry, Tiffany and Ralph Lauren performed extremely well. Ray-Ban, Oakley, LensCrafters and Sunglass Hut continued to record very positive performance and, thanks to the great commitment of the entire Group, comparable store sales of OPSM in Australia were back to positive, despite the fact that the Australian environment continues to be challenging.

"Despite the weakening of the U.S. dollar exchange rate, our net sales in U.S. dollars in the fundamental region of North America were strong, growing by 7.5% during the quarter.

"We strongly believe that these results provide an excellent basis for us to look with confidence to the second half of the year."

In the second quarter of the year, Luxottica achieved positive performances in most geographic regions where it is present. The results recorded by the Wholesale Division are worthy of note, improving on the best-ever sales of previous quarters, recording strong growth in net sales (+11.6% at constant exchange rates(2)). Emerging markets made a key contribution to this performance, along with Europe, particularly France, Germany, Spain and Italy, which enjoyed an especially positive 'sun' season.

The results for Sunglass Hut were also exceptional, for the fourth consecutive quarter, benefitting from the continuous actions aimed at attracting and creating meaningful relationships with new consumers, as well as the opening of the first stores in Brazil and China. LensCrafters once again proved to be the point of reference for the optical sector in North America, thanks in part to the major investments made in new technologies and laboratories.

Consolidated results

In the second quarter of 2011, net sales for the Group rose by 9.5% at constant exchange rates(2) (+2.4% at current exchange rates), to Euro 1,633.5 million from Euro 1,595.1 million in the second quarter of 2010. During the half-year period, net sales rose by 9.3% at constant exchange rates(2) to Euro 3,189.6 million (Euro 2,986.8 million in the first half of 2010).

EBITDA(3) for the second quarter of 2011 grew over the previous year by 5.0% to Euro 352.2 million, from Euro 335.4 million in the second quarter of 2010. For the first half of the year, EBITDA(3) increased to Euro 635.1 million from Euro 578.0 million posted for the first half of 2010.

Operating income for the second quarter of 2011 settled at Euro 276.8 million (Euro 258.3 million for the same period last year, +7.2%), while the Group's operating margin grew from 16.2% in the second quarter of 2010 to 16.9% in the second quarter of 2011. For the first half of the year, the operating income amounted to Euro 484.2 million, up 12.7% over the Euro 429.6 million posted for the same period last year.

Net income for the second quarter of 2011 increased to Euro 162.1 million, up by 8.0% from Euro 150.1 million for the same period of 2010, resulting in earnings per share (EPS) of Euro 0.35 (at an average Euro/U.S. dollar exchange rate of 1.4391). The EPS in U.S. dollars grew by 21.9% from U.S. $0.42 in the second quarter of 2010 to U.S. $0.51 in the second quarter of 2011.

For the second quarter of 2011, the Group increased the investments in its future, opening new stores and investing in new technologies. By carefully controlling working capital, Luxottica once again generated excellent positive free cash flow(3) (Euro 154 million). Thanks to this excellent performance and after having paid dividends during the quarter of approximately Euro 200 million, net debt as of June 30, 2011 came to Euro 2,118 million (Euro 2,111 million at the end of 2010), with a ratio of net debt to EBITDA(3) of 1.9x as of June 30, 2011 as compared with 2.0x at the end of 2010.

Overview of performance at the Wholesale Division

For the second quarter of 2011, the Wholesale Division recorded its best ever results, both in terms of net sales and of profitability. The Division confirmed its ability to grow significantly in all the geographic areas where the Group is present, exploiting opportunities across the board. Underlying this performance is the excellent feedback on our new collections, the ability of the organization to build and maintain strong relationships with customers, the success in promoting Luxottica's brands by highlighting their core values and providing excellent customer service.

During the quarter, Ray-Ban and Oakley results confirmed once again that they are truly exceptional brands. Additionally, the growth trends of the premium and luxury brands and of the STARS program were also confirmed.

The Division's net sales rose to Euro 704.0 million in the second quarter of 2011 from Euro 651.2 million in the second quarter of 2010 (+11.6% at constant exchange rates(2) and +8.1% at current exchange rates). For the first half of 2011, net sales settled at Euro 1,345.1 million, up 12.5% at constant exchange rates(2) over the Euro 1,204.7 million recorded for the first half of 2010 (+11.7% at current exchange rates).

Operating income for the Wholesale Division therefore amounted to Euro 188.5 million for the second quarter of 2011, up 19.9% over the 157.2 million recorded for the second quarter of 2010. The operating margin went from 24.1% in the second quarter of 2010 to 26.8% for the second quarter of 2011. In the first six months of 2011, the operating margin came to 25.0% (23.0% in the first half of 2010).

Overview of performance at the Retail Division

During the second quarter of 2011, the Division continued to grow, with LensCrafters and Sunglass Hut in particular achieving excellent results: at constant exchange rates(2), net sales for the Division grew by 8.0%. The depreciation of the U.S. dollar against the Euro did, however, affect the translation of net sales, since approximately 80% derive from sales in North America. Net sales at current exchange rates therefore came to Euro 929.6 million for the second quarter of 2011 (Euro 944.0 million in the second quarter 2010, -1.5% at current exchange rates). During the first six months of 2011, net sales settled at Euro 1,844.5 million, up 7.2% at constant exchange rates(2)( )on the Euro 1,782.1 million recorded for the first half of 2010 (+3.5% at current exchange rates).

In terms of comparable store sales(4), the "prescription" business in North America made good progress (+3.1%), with LensCrafters recording a 5.7% increase in comparable store sales(4), continuing to benefit from the action and investments made during recent months, and Pearle Vision is back to positive.

Thanks to the efforts made by the whole organization, comparable store sales(4) of OPSM in Australia rose by 1.2% in the second quarter of 2011, after 6 quarters of negative performance, over the same period last year, despite the Australian environment continuing to be challenging.

Once again, Sunglass Hut, the Group's sun specialty chain that operates in a number of geographical areas, posted exceptional results, with overall comparable store sales(4) up 7.8% in the second quarter of 2011 and a particularly positive performance in the United States (+9.7%).

Due to the exchange rate effect, operating income of the Division went from Euro 136.6 million in the second quarter of 2010 to 129.8 million in the second quarter of 2011 (-5.0%). The operating margin for such periods therefore went from 14.5% to 14.0%, respectively. On a half-yearly basis, the operating margin was 12.3% (12.6% in the first half of 2010).

Results for the first quarter and first half of 2011 will be discussed today in a conference call with the financial community starting at 6:30 PM CET. The audio portion and related presentation will be available to all via live webcast at www.luxottica.com.

The officer responsible for preparing the Company's financial reports, Enrico Cavatorta, declares, pursuant to Article 154-bis, Section 4, of the Consolidated Law on Finance, that the accounting information contained in this press release is consistent with the data in the supporting documents, books of accounts and other accounting records.


    Contacts
    --------
    Ivan Dompe                              Alessandra Senici
    Group Corporate Communications
     Director                               Group Investor Relations Director
    Tel.: +39 (02) 8633 4726                Tel.: +39 (02) 8633 4038
                                             E-mail:
    E-mail: ivan.dompe@luxottica.com         InvestorRelations@Luxottica.com

                                    www.luxottica.com


    Notes on the press  release



    1 All comparisons, including percentage changes, refer
     to the three- and six-month periods ended June 30,
     2011 and June 30, 2010, respectively.
    2 2011 figures at constant exchange rates have been 
    calculated using the average exchange rates in effect 
    for the corresponding period in the previous year. For 
    further information, please refer to the attached tables.
    3 EBITDA, EBITDA margin, free cash flow, net debt and
     the ratio of net debt to EBITDA are not measures in
     accordance with IAS/IFRS. For additional information
     on non-IAS/IFRS measures, please see the attached
     tables.
    4 Comparable store sales reflect the change in sales
     from one period to another that, for comparison
     purposes, includes in the calculation only stores open
     in the more recent period that also were open during
     the comparable prior period, and applies to both
     periods the average exchange rate for the prior period
     and the same geographic area.

Luxottica Group S.p.A.

Luxottica Group is a leader in premium, luxury and sports eyewear with approximately 7,000 optical and sun retail stores in North America, Asia-Pacific, China, South Africa, Latin America and Europe, and a strong, well-balanced brand portfolio. House brands include Ray-Ban, the world's most famous sun eyewear brand, Oakley, Vogue, Persol, Oliver Peoples, Arnette and REVO, while licensed brands include Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada, Tiffany and Versace. In addition to a global wholesale network involving 130 different countries, the Group manages leading retail chains in major markets, including LensCrafters, Pearle Vision and ILORI in North America, OPSM and Laubman & Pank in Asia-Pacific, LensCrafters in China, GMO in Latin America and Sunglass Hut worldwide. The Group's products are designed and manufactured at its six manufacturing plants in Italy, two wholly-owned plants in the People's Republic of China and one plant in the United States devoted to the production of sports eyewear. In 2010, Luxottica Group posted net sales of almost euro 5.8 billion. Additional information on the Group is available at www.luxottica.com.

Safe Harbor Statement

Certain statements in this press release may constitute "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those which are anticipated. Such risks and uncertainties include, but are not limited to, the ability to manage the effects of the current uncertain international economic outlook, the ability to successfully acquire and integrate new businesses, the ability to predict future economic conditions and changes to consumer preferences, the ability to successfully introduce and market new products, the ability to maintain an efficient distribution system, the ability to achieve and manage growth, the ability to negotiate and maintain favourable license agreements, the availability of correction alternatives to prescription eyeglasses, fluctuations in exchange rates, changes in local conditions, the ability to protect intellectual property, the ability to maintain relations with those hosting our stores, computer system problems, inventory-related risks, credit and insurance risks, changes to tax regimes as well as other political, economic and technological factors and other risks and uncertainties referred to in Luxottica Group's filings with the U.S. Securities and Exchange Commission. These forward looking statements are made as of the date hereof and Luxottica Group does not assume any obligation to update them.

- APPENDIX FOLLOWS -

      LUXOTTICA GROUP

     CONSOLIDATED FINANCIAL HIGHLIGHTS
     FOR THE THREE-MONTH PERIODS ENDED
     JUNE 30, 2011 AND JUNE 30, 2010

     In accordance with IAS/IFRS



     KEY FIGURES IN THOUSANDS OF EURO  (1)
     ------------------------------------
                                                   2011        2010 % Change

     NET SALES                                1,633,544   1,595,124      2.4%


     NET INCOME ATTRIBUTABLE TO LUXOTTICA
      GROUP STOCKHOLDERS                        162,087     150,052      8.0%

     BASIC EARNINGS PER SHARE (ADS)(2):            0.35        0.33      7.6%









     KEY FIGURES IN THOUSANDS OF U.S. DOLLARS  (1) (3)
     ------------------------------------------------
                                                   2011        2010 % Change

     NET SALES                                2,350,833   2,027,084     16.0%


     NET INCOME ATTRIBUTABLE TO LUXOTTICA
      GROUP STOCKHOLDERS                        233,259     190,686     22.3%

     BASIC EARNINGS PER SHARE (ADS) (2):           0.51        0.42     21.7%







     Notes :                                       2011        2010
     (1)  Except earnings per share (ADS), which are
      expressed in Euro and U.S. Dollars, respectively
     (2)  Weighted average number of
      outstanding shares                    460,302,612 458,696,583
     (3)  Average exchange rate (in U.S.
      Dollars per Euro)                          1.4391      1.2708


      LUXOTTICA GROUP

     CONSOLIDATED FINANCIAL HIGHLIGHTS
     FOR THE SIX-MONTH PERIODS ENDED
     JUNE 30, 2011 AND JUNE 30, 2010

     In accordance with IAS/IFRS



     KEY FIGURES IN THOUSANDS OF EURO  (1)
     ------------------------------------
                                                   2011        2010 % Change

     NET SALES                                3,189,646   2,986,811      6.8%


     NET INCOME ATTRIBUTABLE TO LUXOTTICA
      GROUP STOCKHOLDERS                        276,781     245,143     12.9%

     BASIC EARNINGS PER SHARE (ADS) (2)            0.60        0.53     12.5%









     KEY FIGURES IN THOUSANDS OF U.S. DOLLARS  (1) (3)
     ------------------------------------------------
                                                   2011        2010 % Change

     NET SALES                                4,475,711   3,962,901     12.9%


     NET INCOME ATTRIBUTABLE TO LUXOTTICA
      GROUP STOCKHOLDERS                        388,379     325,256     19.4%

     BASIC EARNINGS PER SHARE (ADS)(2)             0.84        0.71     19.0%



     Notes :                                       2011        2010
     (1)  Except earnings per share (ADS), which are
      expressed in Euro and U.S. Dollars, respectively
     (2)  Weighted average number of
      outstanding shares                    460,118,653 458,551,310
     (3)  Average exchange rate (in U.S.
      Dollars per Euro)                          1.4032      1.3268


      LUXOTTICA GROUP

      CONSOLIDATED INCOME STATEMENT
      FOR THE THREE-MONTH PERIODS ENDED
      JUNE 30, 2011 AND JUNE 30, 2010

      In accordance with IAS/IFRS


      KEY FIGURES IN THOUSANDS OF
       EURO  (1)
                                          2Q 2011  % of sales       2Q 2010

      NET SALES                         1,633,544       100.0%    1,595,124
      COST OF SALES                      (542,674)                 (529,756)
      GROSS PROFIT                      1,090,871        66.8%    1,065,367
      OPERATING EXPENSES:
      SELLING EXPENSES                   (488,101)                 (484,763)
      ROYALTIES                           (28,509)                  (27,632)
      ADVERTISING EXPENSES               (113,260)                 (115,345)
      GENERAL AND ADMINISTRATIVE
       EXPENSES                          (164,482)                 (157,875)
      TRADEMARK AMORTIZATION AND
       OTHER                              (19,701)                  (21,422)
      TOTAL                              (814,053)                 (807,037)
      OPERATING INCOME                    276,819        16.9%      258,330
      OTHER INCOME (EXPENSE):
      INTEREST EXPENSES                   (31,172)                  (26,932)
      INTEREST INCOME                       5,148                     1,245
      OTHER - NET                          (1,152)                   (3,934)
      OTHER INCOME (EXPENSES)-NET         (27,175)                  (29,622)
      INCOME BEFORE PROVISION FOR         249,642        15.3%      228,708
      INCOME TAXES
      PROVISION FOR INCOME TAXES          (85,822)                  (77,813)
      NET INCOME                          163,820        10.0%      150,895
      OF WHICH ATTRIBUTABLE TO:
      -LUXOTTICA GROUP STOCKHOLDERS       162,087         9.9%      150,052
      - NON-CONTROLLING INTERESTS           1,734         0.1%          843
      NET INCOME                          163,820        10.0%      150,895

      BASIC EARNINGS PER SHARE
       (ADS):                                0.35                      0.33

      FULLY DILUTED EARNINGS PER
       SHARE (ADS):                          0.35                      0.33

      WEIGHTED AVERAGE NUMBER OF      460,302,612               458,696,583
      OUTSTANDING SHARES
      FULLY DILUTED AVERAGE NUMBER
       OF SHARES                      462,326,882               460,715,012




      KEY FIGURES IN THOUSANDS OF
       EURO  (1)
                                     % of sales   % Change

      NET SALES                           100.0%        2.4%
      COST OF SALES
      GROSS PROFIT                         66.8%        2.4%
      OPERATING EXPENSES:
      SELLING EXPENSES
      ROYALTIES
      ADVERTISING EXPENSES
      GENERAL AND ADMINISTRATIVE
       EXPENSES
      TRADEMARK AMORTIZATION AND
       OTHER
      TOTAL
      OPERATING INCOME                     16.2%        7.2%
      OTHER INCOME (EXPENSE):
      INTEREST EXPENSES
      INTEREST INCOME
      OTHER - NET
      OTHER INCOME (EXPENSES)-NET
      INCOME BEFORE PROVISION FOR          14.3%        9.2%
      INCOME TAXES
      PROVISION FOR INCOME TAXES
      NET INCOME                            9.5%        8.6%
      OF WHICH ATTRIBUTABLE TO:
      -LUXOTTICA GROUP STOCKHOLDERS         9.4%        8.0%
      - NON-CONTROLLING INTERESTS           0.1%
      NET INCOME                            9.5%        8.6%

      BASIC EARNINGS PER SHARE
       (ADS):

      FULLY DILUTED EARNINGS PER
       SHARE (ADS):

      WEIGHTED AVERAGE NUMBER OF
      OUTSTANDING SHARES
      FULLY DILUTED AVERAGE NUMBER
       OF SHARES




      Notes :
      (1) Except earnings per share (ADS), which are expressed in Euro

      LUXOTTICA GROUP

      CONSOLIDATED INCOME STATEMENT
      FOR THE SIX-MONTH PERIODS ENDED
      JUNE 30, 2011 AND JUNE 30, 2010

      In accordance with IAS/IFRS

      KEY FIGURES IN THOUSANDS OF EURO
       (1)
      In thousands of Euro  (1)                2011  % of sales         2010

      NET SALES                           3,189,646       100.0%   2,986,811
      COST OF SALES                     (1,097,127)              (1,029,545)
      GROSS PROFIT                        2,092,519        65.6%   1,957,265
      OPERATING EXPENSES:
      SELLING EXPENSES                     (980,366)                (937,529)
      ROYALTIES                             (57,052)                 (52,500)
      ADVERTISING EXPENSES                 (203,673)                (196,488)
      GENERAL AND ADMINISTRATIVE
       EXPENSES                            (327,125)                (299,640)
      TRADEMARK AMORTIZATION AND OTHER      (40,069)                 (41,533)
      TOTAL                             (1,608,285)              (1,527,690)
      OPERATING INCOME                      484,234        15.2%     429,577
      OTHER INCOME (EXPENSE):
      INTEREST EXPENSES                     (60,434)                 (51,571)
      INTEREST INCOME                         7,235                    3,282
      OTHER - NET                            (2,896)                  (4,752)
      OTHER INCOME (EXPENSES)-NET           (56,095)                 (53,041)
      INCOME BEFORE PROVISION FOR           428,140        13.4%     376,536
      INCOME TAXES
      PROVISION FOR INCOME TAXES           (147,221)                (127,973)
      NET INCOME                            280,919         8.8%     248,562
      OF WHICH ATTRIBUTABLE TO:
      - LUXOTTICA GROUP STOCKHOLDERS        276,781         8.7%     245,143
      - NONCONTROLLING INTERESTS              4,138         0.1%       3,419
      NET INCOME                            280,919         8.8%     248,562

      BASIC EARNINGS PER SHARE (ADS):          0.60                     0.53

      FULLY DILUTED EARNINGS PER SHARE
       (ADS):                                  0.60                     0.53

      WEIGHTED AVERAGE NUMBER OF        460,118,653              458,551,310
      OUTSTANDING SHARES
      FULLY DILUTED AVERAGE NUMBER OF
       SHARES                           462,153,860              460,301,289




      KEY FIGURES IN THOUSANDS OF EURO
       (1)
      In thousands of Euro  (1)         % of sales   % Change

      NET SALES                              100.0%        6.8%
      COST OF SALES
      GROSS PROFIT                            65.5%        6.9%
      OPERATING EXPENSES:
      SELLING EXPENSES
      ROYALTIES
      ADVERTISING EXPENSES
      GENERAL AND ADMINISTRATIVE
       EXPENSES
      TRADEMARK AMORTIZATION AND OTHER
      TOTAL
      OPERATING INCOME                        14.4%       12.7%
      OTHER INCOME (EXPENSE):
      INTEREST EXPENSES
      INTEREST INCOME
      OTHER - NET
      OTHER INCOME (EXPENSES)-NET
      INCOME BEFORE PROVISION FOR             12.6%       13.7%
      INCOME TAXES
      PROVISION FOR INCOME TAXES
      NET INCOME                               8.3%       13.0%
      OF WHICH ATTRIBUTABLE TO:
      - LUXOTTICA GROUP STOCKHOLDERS           8.2%       12.9%
      - NONCONTROLLING INTERESTS               0.1%
      NET INCOME                               8.3%       13.0%

      BASIC EARNINGS PER SHARE (ADS):

      FULLY DILUTED EARNINGS PER SHARE
       (ADS):

      WEIGHTED AVERAGE NUMBER OF
      OUTSTANDING SHARES
      FULLY DILUTED AVERAGE NUMBER OF
       SHARES




      Notes :
      (1) Except earnings per share (ADS), which are expressed in Euro

      LUXOTTICA GROUP

     CONSOLIDATED BALANCE SHEET
     AS OF JUNE 30, 2011 AND DECEMBER 31, 2010

     In accordance with IAS/IFRS


                                                             December 31,
     KEY FIGURES IN THOUSANDS OF EURO          June 30, 2011         2010

     CURRENT ASSETS:
     CASH AND CASH EQUIVALENTS                       508,397      679,852
     ACCOUNTS RECEIVABLE - NET                       812,972      655,892
     INVENTORIES - NET                               586,035      590,036
     OTHER ASSETS                                    204,460      226,759
     TOTAL CURRENT ASSETS                          2,111,864    2,152,539


     NON-CURRENT ASSETS:
     PROPERTY, PLANT AND EQUIPMENT - NET           1,192,194    1,229,130
     GOODWILL                                      2,725,907    2,890,397
     INTANGIBLE ASSETS - NET                       1,058,086    1,155,007
     INVESTMENTS                                      53,568       54,083
     OTHER ASSETS                                    144,042      148,125
     DEFERRED TAX ASSETS                             369,060      364,299
     TOTAL NON-CURRENT ASSETS                      5,542,856    5,841,040

     TOTAL                                         7,654,720    7,993,579

     CURRENT LIABILITIES:
     BANK OVERDRAFTS                                 187,051      158,648
     CURRENT PORTION OF LONG-TERM DEBT               230,381      197,566
     ACCOUNTS PAYABLE                                481,444      537,742
     INCOME TAXES PAYABLE                             66,119       60,067
     OTHER LIABILITIES                               558,020      549,280
     TOTAL CURRENT LIABILITIES                     1,523,015    1,503,303

     NON-CURRENT LIABILITIES:
     LONG-TERM DEBT                                2,209,278    2,435,071
     LIABILITY FOR TERMINATION INDEMNITIES            44,742       45,363
     DEFERRED TAX LIABILITIES                        416,054      429,848
     OTHER LIABILITIES                               265,478      310,590
     TOTAL NON-CURRENT LIABILITIES                 2,935,552    3,220,872


     STOCKHOLDERS' EQUITY:
     LUXOTTICA GROUP STOCKHOLDERS' EQUITY          3,182,845    3,256,375
     NON-CONTROLLING INTEREST                         13,308       13,029
     TOTAL STOCKHOLDERS' EQUITY                    3,196,153    3,269,404


     TOTAL                                         7,654,720    7,993,579
     -----                                         ---------    ---------


                                    LUXOTTICA GROUP

                    CONSOLIDATED FINANCIAL HIGHLIGHTS
                     FOR THE SIX-MONTH PERIODS ENDED
                     JUNE 30, 2011 AND JUNE 30, 2010
                        - SEGMENTAL INFORMATION -

                       In accordance with IAS/IFRS


    In
     thousands
     of Euro      Manufacturing      Retail      Inter-Segment   Consolidated
                                                  Transactions
                        and                            and
                     Wholesale                  Corporate Adj.
    2011

    Net Sales          1,345,101     1,844,545                      3,189,646
    Operating
     Income              336,328       226,562          (78,655)      484,234
    % of Sales              25.0%         12.3%                          15.2%
    Capital
     Expenditures         46,169        85,413                        131,582
     Depreciation
     &
     Amortization         41,523        69,313           40,069       150,906

    2010

    Net Sales          1,204,678     1,782,133                      2,986,811
    Operating
     Income              277,325       224,584          (72,333)      429,576
    % of Sales              23.0%         12.6%                          14.4%
    Capital
     Expenditures         37,496        45,393                         82,889
     Depreciation
     &
     Amortization         38,223        68,666           41,533       148,421





    Non-IAS/IFRS Measures: Adjusted measures

    In order to provide a supplemental comparison of current period
     results of operations to prior periods, we have adjusted for
     certain non-recurring
    transactions or events.

    We have made such adjustments to the following measures: EBITDA,
     EBITDA margin and net income.
    For comparative purposes, management has adjusted each of the
     foregoing measures by excluding the following. :
     (a) a non-recurring gain in 2010 from the release of a
      provision for taxes of approximately USD 27 million
         (approximately Euro 20 million at December 31, 2010) related to
          the sale of the Things Remembered retail chain in 2006; and
     (b) a non-recurring loss in the fourth quarter of 2010 from the
      impairment charge recorded of approximately Euro 20 million
      related to certain of the Company assets in the Australian
      region.


    The Company believes that these adjusted measures are useful to
     both management and investors in evaluating the Company's
     operating performance
    compared with that of other companies in its industry because
     they exclude the impact of non-recurring items that are not
     relevant
    to the Company's operating performance.

    The adjusted measures referenced above are not measures of
     performance in accordance with International Financial
     Reporting Standards
    as issued by the International Accounting Standards Board (IAS/
     IFRS).  We include these adjusted comparisons in this
     presentation in order to provide
    a supplemental view of operations that excludes items that are
     unusual, infrequent or unrelated to our ongoing core
     operations.

    These adjusted measures are not meant to be considered in
     isolation or as a substitute for items appearing on our
     financial statements prepared in accordance
    with IAS/IFRS.  Rather, these non-IAS/IFRS measures should be
     used as a supplement to IAS/IFRS results to assist the reader
     in better understanding
    the operational performance of the Company.  The Company
     cautions that these adjusted measures are not defined terms
     under IAS/IFRS and their definitions
    should be carefully reviewed and understood by investors.
     Investors should be aware that Luxottica Group's method of
     calculating these adjusted measures may
    differ from methods used by other companies.

    The Company recognizes that there are limitations in the
     usefulness of adjusted comparisons due to the subjective nature
     of items excluded by
    management in calculating adjusted comparisons.  We compensate
     for the foregoing limitation by using these adjusted measures
     as a comparative tool,
     together with IAS/IFRS measurements, to assist in the
      evaluation of our operating performance.

    See the tables on the following pages for a reconciliation of
     the adjusted measures discussed above to their most directly
     comparable IAS/IFRS
    financial measures or, in the case of adjusted EBITDA and
     adjusted EBITDA margin, to EBITDA and EBITDA margin,
     respectively, which are also
     non-IAS/IFRS measures. For a discussion of EBITDA and EBITDA
      margin and a reconciliation of EBITDA and EBITDA margin to
      their most directly comparable IAS/IFRS financial measures,
      see the tables on the earlier pages.



    Non-IAS/IFRS Measures: Reconciliation between reported
     and adjusted P&L items
    Millions of Euro

                                                          FY10
                                                          ----
                                               EBITDA          Net Income
                                               ------          ----------


    Reported                                          1,013.8          402.2
    --------                                          -------          -----


     > Adjustment for goodwill
      impairment charge                                  20.4           20.4
     -------------------------                           ----           ----


    > Adjustment for discontinued
     operations                                                        (19.9)
    -----------------------------                                      -----


    Adjusted                                          1,034.2          402.7
    --------                                          -------          -----


    Non-IAS/IFRS Measure: EBITDA and EBITDA margin

    EBITDA represents net income before non-controlling
     interest, taxes, other income/expense, depreciation
     and amortization. EBITDA margin means EBITDA divided by
     net sales.
    The Company believes that EBITDA is useful to both
     management and investors in evaluating the Company's
     operating performance compared with that of other
     companies in its industry.
    Our calculation of EBITDA allows us to compare our
     operating results with those of other companies without
     giving effect to financing, income taxes
    and the accounting effects of capital spending, which
     items may vary for different companies for reasons
     unrelated to the overall operating performance of a
     company's business.

    EBITDA and EBITDA margin are not measures of performance
     under International Financial Reporting Standards as
     issued by the International Accounting Standards Board
     (IAS/IFRS).
    We include them in this presentation in order to:

    *    improve transparency for investors;
    *    assist investors in their assessment of the
     Company's operating performance and its ability to
     refinance its debt as it matures and incur additional
     indebtedness to invest in new business opportunities;
    *    assist investors in their assessment of the
     Company's cost of debt;
    *    ensure that these measures are fully understood in
     light of how the Company evaluates its operating
     results and leverage;
    *    properly define the metrics used and confirm their
     calculation; and
    *    share these measures with all investors at the same
     time.

    EBITDA and EBITDA margin are not meant to be considered
     in isolation or as a substitute for items appearing on
     our financial statements prepared in accordance with
     IAS/IFRS.
    Rather, these non-IAS/IFRS measures should be used as
     a supplement to IAS/IFRS results to assist the reader
     in better understanding the operational performance of
     the Company.
    The Company cautions that these measures are not defined
     terms under IAS/IFRS and their definitions should be
     carefully reviewed and understood by investors.
    Investors should be aware that Luxottica Group's method
     of calculating EBITDA may differ from methods used by
     other companies.  The Company recognizes that the
     usefulness of EBITDA has certain limitations,
     including:



    *    EBITDA does not include interest expense.  Because
     we have borrowed money in order to finance our
     operations, interest expense is a necessary element of
     our costs and ability to generate profits and cash
     flows.
                  Therefore, any measure that excludes interest expense
                   may have material limitations;
    *    EBITDA does not include depreciation and
     amortization expense.  Because we use capital assets,
     depreciation and amortization expense is a necessary
     element of our costs and ability to generate profits.
                  Therefore, any measure that excludes depreciation and
                  expense may have material limitations;
    *    EBITDA does not include provision for income taxes.
      Because the payment of income taxes is a necessary
      element of our costs, any measure that excludes tax
     expense may have material limitations;
    *    EBITDA does not reflect cash expenditures or future
     requirements for capital expenditures or contractual
     commitments;
    *    EBITDA does not reflect changes in, or cash
     requirements for, working capital needs;
    *    EBITDA does not allow us to analyze the effect of
     certain recurring and non-recurring items that
     materially affect our net income or loss.

    We compensate for the foregoing limitations by using
     EBITDA as a comparative tool, together with IAS/IFRS
     measurements, to assist in the evaluation of our
     operating performance and leverage.

    See the table on the following page for a reconciliation
     of EBITDA to net income, which is the most directly
     comparable IAS/IFRS financial measure, as well as the
     calculation of EBITDA margin on net sales.


      Non-IAS/IFRS Measure: EBITDA and EBITDA margin
      Millions of Euro
                                          2Q 2010      2Q 2011      1H 2010



      Net income/(loss)                       150.1        162.1        245.1
      (+)
      ---

      Net income attributable to
       non-controlling interest                 0.8          1.7          3.4
      (+)
      ---

      Provision for income taxes             77.8         85.8        128.0
       (+)
       ---

      Other (income)/expense                 29.6         27.2         53.0
      (+)
      ---

      Depreciation & amortization            77.0         75.3        148.4
      (+)

      EBITDA                                335.4        352.2        578.0
      (=)

      Net sales                           1,595.1      1,633.5      2,986.8
      (/)

      EBITDA margin                          21.0%        21.6%        19.4%
      (=)



     Millions of Euro
                                                         LTM June 30,
                                     1H 2011     FY10 (1)         2011



     Net income/(loss)               276.8       402.7          434.4
     (+)
     ---

     Net income attributable to
      non-controlling interest       4.1         5.1            5.8
     (+)
     ---

     Provision for income taxes    147.2       218.2          237.4
      (+)
      ---

     Other (income)/expense         56.1       106.6          109.7
     (+)
     ---

     Depreciation & amortization   150.9       301.6          304.1
     (+)

     EBITDA                        635.1     1,034.2        1,091.4
     (=)


     Net sales                   3,189.6     5,798.0        6,000.8
     (/)


     EBITDA margin                  19.9%       17.8%          18.2%
     (=)




      1. Net income as of Dec. 31, 2010 excluding impairment and
      discontinued operations. EBITDA as of Dec. 31, 2010 excluding
      impairment.

    Non-IAS/IFRS Measure: Net Debt to EBITDA ratio

    Net debt to EBITDA ratio:  Net debt means the sum of bank overdrafts,
     current portion of long-term debt and long-term debt, less cash.
     EBITDA represents net income before non-controlling interest, taxes,
     other income/expense, depreciation and amortization.
    The Company believes that EBITDA is useful to both management and
     investors in evaluating the Company's operating performance compared
     with that of other companies in its industry.
    Our calculation of EBITDA allows us to compare our operating results
     with those of other companies without giving effect to financing,
     income taxes and the accounting effects of capital spending,
    which items may vary for different companies for reasons unrelated to
     the overall operating performance of a company's business.  The ratio
     of net debt to EBITDA is a measure used by management to assess
    the Company's level of leverage, which affects our ability to refinance
     our debt as it matures and incur additional indebtedness to invest in
     new business opportunities.
    The ratio also allows management to assess the cost of existing debt
     since it affects the interest rates charged by the Company's lenders.

    EBITDA and ratio of net debt to EBITDA are not measures of performance
     under International Financial Reporting Standards as issued by the
     International Accounting Standards Board (IAS/IFRS).
    We include them in this presentation in order to:

    *      improve transparency for investors;
    *      assist investors in their assessment of the Company's operating
     performance and its ability to refinance its debt as it matures and
     incur additional indebtedness to invest in new business opportunities;
    *      assist investors in their assessment of the Company's cost of
     debt;
    *      ensure that these measures are fully understood in light of how
     the Company evaluates its operating results and leverage;
    *      properly define the metrics used and confirm their calculation;
     and
    *      share these measures with all investors at the same time.

    EBITDA and ratio of net debt to EBITDA are not meant to be considered in
     isolation or as a substitute for items appearing on our financial
     statements prepared in accordance with IAS/IFRS.
    Rather, these non-IAS/IFRS measures should be used as a supplement to
     IAS/IFRS results to assist the reader in better understanding the
     operational performance of the Company.
    The Company cautions that these measures are not defined terms under
     IAS/IFRS and their definitions should be carefully reviewed and
     understood by investors.
    Investors should be aware that Luxottica Group's method of calculating
     EBITDA and the ratio of net debt to EBITDA may differ from methods used
     by other companies.
    The Company recognizes that the usefulness of EBITDA and the ratio of
     net debt to EBITDA as evaluative tools may have certain limitations,
     including:

    *   EBITDA does not include interest expense.  Because we have borrowed
     money in order to finance our operations, interest expense is a
     necessary element of our costs and ability to generate profits and cash
     flows.
    Therefore, any measure that excludes interest expense may have material
     limitations;
    *   EBITDA does not include depreciation and amortization expense.
     Because we use capital assets, depreciation and amortization expense is
     a necessary element of our costs and ability to generate profits.
    Therefore, any measure that excludes depreciation and expense may have
     material limitations;
    *   EBITDA does not include provision for income taxes.  Because the
     payment of income taxes is a necessary element of our costs, any
     measure that excludes tax expense may have material limitations;
    *   EBITDA does not reflect cash expenditures or future requirements for
     capital expenditures or contractual commitments;
    *   EBITDA does not reflect changes in, or cash requirements for,
     working capital needs;
    *   EBITDA does not allow us to analyze the effect of certain recurring
     and non-recurring items that materially affect our net income or loss;
     and
    *   The ratio of net debt to EBITDA is net of cash and cash equivalents,
     restricted cash and short-term investments, thereby reducing our debt
     position.

    Because we may not be able to use our cash to reduce our debt on a
     dollar-for-dollar basis, this measure may have material limitations.
    We compensate for the foregoing limitations by using EBITDA and the
     ratio of net debt to EBITDA as two of several comparative tools,
     together with IAS/IFRS measurements, to assist in the evaluation of
     our operating performance and leverage.

    See the table on the following page for a reconciliation of net debt to
     long-term debt, which is the most directly comparable IAS/IFRS
     financial measure, as well as the calculation of the ratio of net debt
     to EBITDA.
    For a reconciliation of EBITDA to net income, which is the most directly
     comparable IAS/IFRS financial measure, see the table on the preceding
     page.


       Non-IAS/IFRS Measure: Net debt and Net debt / EBITDA

      Millions of Euro

                                      June 30, 2011       Dec. 31, 2010
                                      -------------       -------------

      Long-term debt (+)                        2,209.3             2,435.1


      Current portion of long-
       term debt (+)                              230.4               197.6


      Bank overdrafts (+)                       187.1               158.6
    -------------------                         -----               -----

      Cash (-)                                 (508.4)             (679.9)



      Net debt (=)                            2,118.3             2,111.4

      LTM EBITDA                              1,091.4             1,034.2

      Net debt/LTM EBITDA                 1.9x                2.0x
    ===================                   ====                ====

      Net debt @ avg. exchange
       rates (1)                              2,187.9             2,116.2


      Net debt @ avg. exchange
       rates (1)/LTM EBITDA               2.0x                2.0x





      1. Net debt figures are calculated using the average exchange rates
      used to calculate the EBITDA figures.

      Non-IAS/IFRS Measures: Free Cash Flow

    Free cash flow net represents net income before non-controlling
     interest, taxes, other income/expense, depreciation and amortization
     (i.e. EBITDA - see table on the earlier page) plus or minus the
     decrease/(increase)
    in working capital over the prior period, less capital expenditures, plus
     or minus interest income/(expense) and extraordinary items, minus taxes
     paid. The Company believes that free cash flow is useful to both
     management
    and investors in evaluating the Company's operating performance compared
     with other companies in its industry.  In particular, our calculation of
     free cash flow provides a clearer picture of the
    Company's ability to generate net cash from operations, which is used for
     mandatory debt service requirements, to fund discretionary investments,
     pay dividends or pursue other strategic opportunities.

    Free cash flow is not a measure of performance under International
     Financial Reporting Standards as issued by the International Accounting
     Standards Board (IAS/IFRS).
         We include it in this presentation in order to:

    * Improve transparency for investors;
    * Assist investors in their assessment of the Company's operating
     performance and its ability to generate cash from operations in excess
     of its cash expenses;
    * Ensure that this measure is fully understood in light of how the
     Company evaluates its operating results;
    * Properly define the metrics used and confirm their calculation; and
    * Share this measure with all investors at the same time.

    Free cash flow is not meant to be considered in isolation or as a
     substitute for items appearing on our financial statements prepared in
     accordance with IAS/IFRS.
    Rather, this non-IAS/IFRS measure should be used as a supplement to
     IAS/IFRS results to assist the reader in better understanding the
     operational performance of the Company.
    The Company cautions that this measure is not a defined term under IAS/
     IFRS and its definition should be carefully reviewed and understood by
     investors.
    Investors should be aware that Luxottica Group's method of calculation of
     free cash flow may differ from methods used by other companies.
    The Company recognizes that the usefulness of free cash flow as an
     evaluative tool may have certain limitations, including:

    -- The manner in which the Company calculates free cash flow may differ
     from that of other companies, which limits its usefulness as a
     comparative measure;
    -- Free cash flow does not represent the total increase or decrease in the
     net debt balance for the period since it excludes, among other things,
     cash
    used for funding discretionary investments and to pursue strategic
     opportunities during the period and any impact of the exchange rate
     changes; and
    -- Free cash flow can be subject to adjustment at the Company's discretion
     if the Company takes steps or adopts policies that increase or diminish
     its current liabilities and/or changes to working capital.

    We compensate for the foregoing limitations by using free cash flow as
     one of several comparative tools, together with IAS/IFRS measurements,
     to assist in the evaluation of our operating performance.

    See the table on the following page for a reconciliation of free cash
     flow to EBITDA and the table on the earlier page for a reconciliation of
     EBITDA to net income, which is the most directly comparable IAS/IFRS
     financial measure.


        Non-IAS/IFRS Measure: Free cash flow
        Millions of Euro

                                                         2Q 2011
                                                         -------
        EBITDA (1)                                                 352
        Change in working capital                                   (8)
        Capex                                                      (74)


        Operating cash flow                                          270
        Financial charges (2)                                      (26)
        Taxes                                                      (89)
        Extraordinary charges (3)                                   (1)


        Free cash flow                                             154


        1. EBITDA is not an IAS/IFRS measure; please see table on the
         earlier page for a reconciliation of EBITDA to net income
        2. Equals interest income minus interest expense
        3. Equals extraordinary income minus extraordinary expense


    Major currencies

              Three months ended  Six months ended   Twelve months ended
                 June 30, 2010     June 30, 2010       December 31, 2010
                 -------------     -------------       -----------------
    Average
     exchange
     rates
    per euro
     1
    --------

    US$                   1.27075            1.32683              1.32572




    AUD                   1.44025            1.48477              1.44231




    GBP                   0.85239            0.86999              0.85784




    CNY                   8.67171            9.05673              8.97123




    JPY                 117.15460          121.31968            116.23857
    ---                 ---------          ---------            ---------


                    Three months ended          Six months ended
                      June 30, 2011               June 30, 2011
                      -------------               -------------
    Average
     exchange
     rates
    per euro
     1
    --------

    US$                         1.43906                    1.40325




    AUD                         1.35500                    1.35820




    GBP                         0.88274                    0.86818




    CNY                         9.35094                    9.17552




    JPY                       117.40762                  114.96992
    ---                       ---------                  ---------


SOURCE Luxottica Group S.p.A.


© PRNewswire 2011
share with twitter share with LinkedIn share with facebook
Latest news on LUXOTTICA GROUP SPA
2015LUXOTTICA : webcast presentation now available for on-demand viewing: dbVIC - De..
PR
2013LUXOTTICA GROUP SPA : Local Pearle Vision Licensee Adds Second Center In Canton,..
PR
2013LUXOTTICA GROUP SPA : Leveraging Results to Drive New Innovation - Research Repo..
PR
2011LUXOTTICA GROUP SPA : Luxottica to Acquire Tecnol, a Leading Eyewear Company in ..
PR
2011LUXOTTICA GROUP SPA : Armani Group and Luxottica Moving Towards a License Agreem..
PR
2011LUXOTTICA ADR : Luxottica: Net Sales for 3Q 2011 Grow by 10% at Constant Exchang..
PR
2011LUXOTTICA ADR : Luxottica Group Announces Audio Webcast of 3Q 2011 Results
PR
2011LUXOTTICA ADR : Notice of the Partial De-Merger of Luxottica Group's Subsidiary ..
PR
2011LUXOTTICA ADR : Luxottica to Enter Israeli Retail Market Through the Acquisition..
PR
2011LUXOTTICA ADR : Luxottica Continues on its Strong Growth Path
PR
More news