MILAN—Luxottica Group (NYSE: LUX) reported that its net sales rose to €9,086 million for the fiscal year ending Dec. 31, 2016, an increase of 3.9 percent at constant exchange rates and 2.8 percent at current exchange rates. The Group’s net income for the 12-month period rose to €851 million, or 7.6 percent at constant exchange rates and 5.8 percent at current exchange rates compared to the prior year.

For the year, overall sales of the company’s wholesale division were relatively flat, reaching €3,528 million, a dip of 0.4 percent at constant rates, and down 1.8 percent at current rates compared to the prior year. The company cited its recently implemented Minimum Advertised Price (MAP) policy, harmonizing prices across different markets and reducing in-store and online promotions sharply for that.

Luxottica’s retail division overall saw sales grow 6.8 percent at constant rates to €5,558 million and 6.0 percent at current rates, compared to the prior year.

"We are very satisfied with our 2016 results and achievements. In a year of major investments and initiatives to improve the quality and competitiveness of the Group in the long run, we reported record sales and net income," commented Leonardo Del Vecchio, executive chairman, and Massimo Vian, CEO for products and operations of Luxottica.

"The courageous decisions taken in the last two years, and all investments aimed to make our product and service offering more innovative and compelling are reflected in the results for the last months of the year, showing improvement particularly in North America. The quality of growth and the enhancement of our brand portfolio continues to be at the very heart of our strategy,” he said.

Del Vecchio added, “Today, Luxottica is looking at the future with enthusiasm for the opportunities to be seized, with the confidence that comes from being a stronger and more efficient Group, and with a faster decision-making process. We have clear strategies and strong brands. We know our consumers around the world and why they choose us. And now we are preparing to offer them a superior eyewear experience, resulting from the integrated design and production of frames and lenses at the source. Regardless of the combination with Essilor, we can confirm that 2017 will be a year of further growth for the Group."

Major investments were made in 2016 to strengthen the foundation of the Group’s organization and businesses around the world. Important initiatives have been dedicated to the development of the Group’s operations. These include the creation of three new large logistics-production hubs that integrate the production and distribution of lenses and frames in Italy, the U.S. and China. The openings of the new centers in Sedico, Atlanta and Dongguan will enable the Group to realize a new organizational model based on logistic and manufacturing hubs where frames and lenses are integrated at the source, offering innovative products and services to customers and faster delivery times, the company noted.

The Group also continued to expand into new markets, to evolve the omnichannel experience of its retail network, and to strengthen digital marketing and innovate its e-commerce platforms, thanks to the progressive roll-out of in-store digital windows and the evolution of the virtual try-on technology on Ray-Ban.com.

For the year, Sunglass Hut confirmed its leadership in the sun segment with revenue growth of 8.1 percent at constant exchange rates, while LensCrafters in North America strengthened its brand equity and reported a net sales increase of 1.3 percent in U.S. dollars. In Australia, a review of the assortments in OPSM stores proved successful during the year, with a gradual improvement in comparable store sales. In Latin America, GMO maintained its solid growth trend, the company said.

The Group's e-commerce platforms, Ray-Ban.com, Oakley.com and SunglassHut.com, in 2016 delivered excellent results, up by 24 percent at constant exchange rates.

In January 2017, as widely reported, Delfin, the Group's majority shareholder, and Essilor announced the signing of an agreement to create an integrated player in the eyewear industry. The objective of the combined company will be to meet the growing needs of the vision care market and consumer demand for premium brands. The transaction is subject to several conditions precedent, including approval by the shareholders of Essilor as well as regulatory approvals from various antitrust authorities.