Latest News Luxottica Reports Modest Growth in First Half of 2016 By Staff Monday, July 25, 2016 3:45 PM MILAN—Luxottica Group S.p.A. (NYSE:LUX) reported today modest gains in net sales and adjusted net income for the first half of 2016 ending June 30.The group’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 Euro 554 million at constant exchange rates and increased 1.3 percent to Euro 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. “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. 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."Luxottica said its vertically integrated business model, geographic diversification and a healthy balance between the optical and sun segments has allowed it to grow despite stricter trade policies. Additionally, integration synergies in its Oakley business unit, a spending review and efficient financial management are pushing profitability, the company said.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.The decrease in Luxottica’s North American wholesale business in the first half of 2016 was offset by a 1.0 percent increase in its retail business, to €2.2 billion. The LensCrafters chain continues to grow, with comparable stores sales up by 1.3 percent in the first half, and Sunglass Hut is showing signs of improvement with comparable store sales that rebounded in the second quarter and have been rising sharply since June, the group said.Vian said the Luxottica is on track to grow 2 to 3 percent for the remainder of the year.