MILAN, Italy—Luxottica Group (NYSE: LUX) said it confirmed its outlook for 2016 and had a more upbeat second half even as it reported a relatively soft first quarter for the period ending March. Stockholders at the company’s general meeting approved the 2015 financial statements as the group reported first quarter net sales rising 2.5 percent to €2,266 million, or 3.8 percent increase at constant exchange rates.

The Group’s overall wholesale division’s net sales were €935 million for the period, up 0.6 percent at current exchange rates, or 2.1 percent at constant exchange rates. Retail division’s net sales rose 4.8 percent overall to €1,331 million, or 5.0 percent at constant exchange rates. Retail division’s overall comparable store sales were up 1.6 percent.

The company cited “solid growth” in its optical business, citing LensCrafters’ performance for the period and noting that Sunglass Hut was seeing some softness, citing a decline in tourism and the volatility in some regions of the world which was impacting traffic to the stores.

In North America, sales performance was positive and accelerating versus the fourth quarter of 2015 at constant exchange rates, even compared to the record first quarter of last year (+6.7% at constant exchange rates). In both the retail and wholesale divisions, the optical business registered solid sales growth, while the sun business has been flat. This past quarter also saw the initial benefits of Oakley’s integration into the optical channel, which were partially offset by the impact of the launch of initiatives to protect and further strengthen the brand portfolio, the company noted.

Luxottica said it is considering an evolution of the marketing function that would put more emphasis on digital communication. On the commercial front, the group, citing its new MAP policy, said it is focused on initiatives that assure greater price alignment around the world and protect the equity of its major brands.

Leonardo Del Vecchio, executive chairman, and Massimo Vian, CEO for product and operations said, “We are pleased with the results of the first four months of 2016, in line with our expectations, and the quality of our growth. It is growth achieved in a more volatile and uncertain macroeconomic environment and in a phase of deep transformation for the Group's commercial approach. We’ve had some initial sacrifices due to the harmonization of prices in major geographical areas, the implementation of strict trade policies toward online operators, and the clean-up of some of our clients’ inventories.

"Therefore, these results, compared with those of our best quarter in 2015, do not reflect the activities and initiatives we are implementing to strengthen our competitive position and lay the foundation for healthy and sustainable growth for the long term.

"We are watching with great interest the optical business results, which drove growth in major markets early in the year. The sun segment, typically slower in the first quarter, showed some uncertainty mainly due to the slowdown in tourism in the United States and Hong Kong. While we suffered more than expected in certain markets such as Hong Kong and the Middle East as well as in Oakley’s sport channel, we expect sales to rebound in the coming months due to the launch of innovative new collections and our new digital marketing strategies. Moreover, we are confident and confirm our guidance for the full year.

"While 2016 is a year of meaningful change for the Group, the pillars of our strategy are the same: product quality, strong brands, efficient factories, continuous expansion of our widespread distribution and the highest level of service. But they are gradually adapting to a changing world. In the past, we have successfully demonstrated our ability to innovate and reinvent ourselves. The initiatives we’re putting in place and the investments we’re making in technology and infrastructure will put us in a position to win in the long term.”

The company also stated, “The stockholders at the General Meeting adopted a resolution to authorize the repurchase and disposal of treasury shares up to a maximum of 10 million ordinary shares of the Company representing 2.07 percent of the Company’s issued share capital. The Company may use a maximum of €750 million to buy back shares, which will be withdrawn from the Company’s extraordinary reserve. The share buyback is aimed at (i) setting up a reserve of shares that can be used to replace financial resources in order to carry out any extraordinary finance transactions, implementing the 2013-2017 Performance Shares Plan incentive plan and/or in connection with other compensation plans or instruments that may be approved in the future and (ii) supporting liquidity and stabilization activities related to the Company’s ordinary shares.”