BUSINESS: Financial Luxottica Approves Q3 and YTD 2012 Results, Records Growth for 11 Straight Quarters By Staff Friday, October 26, 2012 12:20 AM MILAN—The board of directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX) have approved the consolidated results for the three- and nine- month periods ended Sept. 30, 2012. During the third quarter of 2012, Luxottica's growth trend continued at a steady pace, the company said. In an overall global macroeconomic environment that was increasingly challenging, Luxottica achieved positive results across all regions, delivering improved results for the eleventh straight quarter, the company pointed out. In the third quarter of 2012, the group's net sales increased from €1,523.8 million to €1,783.5 million, up 17.0 percent. Net income for the quarter increased to €138.6 million over €106.1 million in 2011, an increase of 30.6 percent. In the first nine months, net sales grew by 15.7 percent to €5,453.8 million, versus €4,713.5 million during the same period in 2011. Net income for the nine-month period was €480.2 million in 2012, up 25.4 percent over 2011’s €382.9 million. “The third quarter results confirm the group's excellent performance, which testifies to Luxottica's commitment to serving its customers and consumers,” said Andrea Guerra, CEO of Luxottica. “Both the Wholesale and Retail divisions have worked enthusiastically and with strong determination within all regions where the group is present. It is important to note the strong continuous growth achieved in North America which exceeded our initial expectations, the acceleration in Western Europe, and the recovery in the Mediterranean region. We are confident that our balanced business model and sales momentum constitute an excellent base as we head toward the end of 2012 and will allow us to take advantage of future opportunities.” The Wholesale division's net sales rose to €646.8 million from €555.1 million in the third quarter of 2011, an increase of 16.5 percent. On a nine-month basis, net sales were €2,161.8 million, improving by 13.8 percent, as compared with €1,900.2 million in the first nine months of 2011. Sales performance in key wholesale areas, such as North America and the emerging markets, stood out this quarter, the company said. Double-digit growth was recorded in China, Turkey, Mexico, India, Brazil and Eastern Europe. Strong results were also achieved in Western Europe, with Nordic countries, France, Germany and the UK up double-digits in the quarter. Performance in Italy was slightly negative, while Spain returned to growth. The company attributes this growth to the strength of their brand portfolio with double-digit growth in Ray-Ban, Oakley and the luxury segment. During the third quarter of 2012, the Retail division recorded growth across all regions with net sales equal to €1,136.7 million versus €968.7 million in the third quarter of 2011, up 17.3 percent year-over-year. During the first nine months of 2012, net sales were €3,292.1 million, up 17.0 percent compared with €2,813.3 million in the same period of 2011. In terms of comparable store sales, the Retail division grew by 5.9 percent during the quarter. The North American optical business also exhibited positive trends in the current period with LensCrafters recording an increase in comparable store sales of 2.5 percent. Sunglass Hut again delivered record results with overall comparable store sales up 8.8 percent, with performance in the U.S. (up 8.4 percent) and Mexico, which recorded an increase in excess of 30 percent in comparable store sales, showing stellar performance as a result of investments made over the last few months, according to the company.