Luxottica posted a 2.9 percent increase in third-quarter sales to €2,215 million, reversing the negative trend seen in the first half and even slightly beating market expectations. At constant currency rates, the top line rose by 3.5 percent, but the growth is now expected to be limited to around 2 percent for the full year.

In the third quarter, wholesale revenues fell by 1.0 percent to €732 million, but on a currency-neutral basis they rose by 0.9 percent, driven by a positive performance in North America and a “strong” improvement in Europe, where sales had been dented in the first half by the group's more selective commercial policies and a delayed sun season.

Worldwide, Luxottica's retail sales increased by 4.9 percent to €1,483 million and rose by 4.8 percent on a currency-neutral basis with comparable store sales up by 2.8 percent.

Global sales rose for Sunglass Hut International (SGH) by 8.0 percent at constant-currency rates, driven by Europe and North America.

At the end of September, SGH had 3,222 stores, over 56 percent of which were located in North America. Europe had the second largest fleet with 480 units, or nearly 15 percent of the total.

Overall, Luxottica had a network of 9,040 stores at the end of the quarter, including 1,896 franchises. The bulk of the stores was in North America with 4,416 locations, of which 1,048 were LensCrafters and 1,810 SGH. The second largest network was in Latin America with 2,143 stores, but 1,178 were in franchising. Europe ranked third with 1,064 shops, of which 480 were SGH and 375 Salmoiraghi & Viganò.

The group's global online sales were up by 16 percent at constant currency rates, driven by ray-ban.com, which benefited from exclusive launches of special collections and a new campaign for Ray-Ban Studios.

In North America, total group revenues went up by 5.2 percent to €1,301 million. In local currencies, they grew by 3.7 percent. Regional wholesale revenues grew by 6.5 percent to €220 million, and they increased by 3.9 percent at constant currency rates with the contribution of all sales channels, in particular key accounts, independent opticians and the sports channel.

Retail sales increased in North America by 5.0 percent to €1,081 million, and were up by 3.6 percent in local currencies, lifted by all banners except Sears Optical. Revenues at LensCrafters grew by 2.7 percent at constant currency rates and the chain's comparable store sales grew by 2.3 percent.

Luxottica Group Sales Breakdown

(million euros, quarter ended Sept. 30)

 

2018

2017
(restated)

% Change
(€ terms)

% Change
(constant
currency)

North America

1,301

1,236

5.3

3.7

Wholesale

220

206

6.8

3.9

Retail (adj.)

1,081

1,030

5.0

3.6

Europe

468

457

2.4

4.0

Asia-Pacific

280

273

2.6

5.3

Latin America

130

148

-12.2

-1.2

Rest of the World

36

38

-5.3

-4.9

Total

2,215

2,153

2.9

3.5

In Europe, Luxottica's sales rose by 2.3 percent to €468 million, or by 4.0 percent in local currencies. The group said that it posted an “excellent performance” in France, the U.K., Turkey and Eastern Europe. The retail business also enjoyed a double-digit growth rate at same currency rates, and the wholesale division also posted a recovery compared with the first half of the year.

In Asia-Pacific, the group's turnover was up by 2.5 percent to €280 million, rising by 5.3 percent at constant-currency with all markets growing except Taiwan, which was affected by the upcoming opening of a sales subsidiary to replace a local distributor.

In Latin America, revenues dropped by 12.3 percent to €130 million, but the decline narrowed to 1.2 percent on a neutral-currency basis. The main cause was a contraction of the wholesale business in Brazil, stemming from a challenging economic situation, but the retail business in Brazil as well as in Mexico and the rest of the region continued to register positive performances.