MILAN—Luxottica Group S.p.A. (NYSE:LUX) reported modest gains in net sales for the first half and second quarter of 2016, ending June 30, 2016.

Luxottica’s adjusted net sales for the first half of 2016 rose 1.6 percent to approximately €4.8 billion at constant exchange rates, or 0.7 percent to €4.7 billion at current exchange rates. Adjusted operating income rose 1.5 percent to approximately €892 million at constant exchange rates and dropped 2.5 percent to €857 million at current exchange rates. Adjusted net income rose 5.6 percent to approximately €554 million at constant exchange rates and increased 1.3 percent to €532 million at current exchange rates.

"In the first six months of the year, we have continued to grow despite the increasingly volatile and uncertain macroeconomic environment, the undergoing simplification of the Group’s organization, the implementation of stricter trade policies and major structural investments. These courageous decisions are not yet reflected in our short-term results. The quality of growth, which is visible in the exceptional cash generation and increasing earnings, remains the priority for all of us," commented Leonardo Del Vecchio, executive chairman, and Massimo Vian, CEO and product operations.

Luxottica reported a net sales increase of 0.5 percent at constant exchange rates in North America, to €2.7 billion for the first half of 2016. The group’s wholesale business in North America slipped 1.6 percent to €554 million during first half. Luxottica attributed the sales dip to the introduction of the “MAP (Minimum Advertised Price) Policy,” an action aimed at protecting the equity of its proprietary brands and the integrity of its distribution network, and the negative performance of the Oakley brand in the sport sector.

During second quarter, Luxottica reported net sales rose by 3.2 percent to €2.5 billion and its adjusted net sales rose 1.4 percent at constant exchange rates. The group’s Wholesale division posted net sales of €1.0 billion, which was substantially unchanged at constant exchange rates. The group’s Retail division generated net sales of €1.4 billion, up by 5.5 percent (+2.3 percent on an adjusted basis).

In North America, Luxottica reported that its Retail division posted sales of €1.1 billion for the second quarter (+1.1 percent on an adjusted basis at constant exchange rates). LensCrafters continues to grow, with comparable store sales up by 1.3 percent in the first half. Sunglass Hut is showing signs of improvement with comparable store sales that rebounded in the second quarter and have been rising sharply since June, according to Luxottica.

“Our performance in the second quarter was affected by adverse weather conditions through late June and by paring down our distribution network, particularly in North America,” said Del Vecchio and Vian. However, we are very pleased with the growth in Europe and in emerging countries, as well as global sales at Sunglass Hut, which rose by 5 percent in the first half of the year. The resilience of the Group's operating margin and continued growth of the profitability of the wholesale division demonstrate the effectiveness of Oakley integration activities and initiatives to improve business efficiency and push us to make, with calm determination, the decisions that we believe are right for the business."