Luxottica Group Issues Preliminary Q4 and Year-End Results, Confirms Guidance

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MILAN—The board of directors of Luxottica Group S.p.A. (MTA: LUX), reviewed consolidated net sales and preliminary trading data for the fourth quarter of 2017 and the full fiscal year. The company issued a statement yesterday regarding the preliminary financials, in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, stating that its net sales in the fourth quarter were €2,093 million (an increase of 4.3 percent at constant exchange rates and minus 2.3 percent at current exchange rates).

The group’s wholesale division’s net sales for the three-month period were €754 million (up 4.7 percent at constant exchange rates and minus 0.4 percent at current exchange rates), posting double-digit growth in North America and Brazil.

Luxottica’s retail division’s net sales for the fourth quarter were €1,338 million (up 4.1 percent at constant exchange rates and minus 3.3 percent at current exchange rates). The company noted that the fourth quarter of 2017 was the best of the year for the wholesale business, retail comparable sales and Sunglass Hut performance in its main geographies and e-commerce sales.

In 2017, the Group's overall revenues rose to €9,157 million, up 2.2 percent at constant exchange rates (up 0.8 percent at current exchange rates). For the fiscal year, wholesale segment sales are forecast at €3,528 million, up 0.2 percent from the prior year while Luxottica’s retail segment for the year will be €5,558 million, an increase of 3.4 percent from the prior year. Free cash flow is expected to reach record levels and adjusted net income is expected to grow strongly.

The company said the results confirm that the initiatives implemented by the Group aimed at creating a more efficient platform and greater business integration improved the quality of the Group’s sales and profits. “Regarding 2018, the Group is looking forward with confidence to the growth of the next 12 months,” commented Leonardo Del Vecchio, executive chairman.