MILAN—Citing 2016 as its year of “transformation,” Luxottica Group (NYSE:LUX) reported overall group net sales rose 3.2 percent to €2,225 million at current exchange rates, 3.5 percent at constant exchange rates, for the third quarter and nine-month period ending Sept. 30, 2016.

The company said its results were driven by “solid” performance in Europe and some emerging markets, an overall acceleration of retail and an extended summer season. The Group’s vertical integration and geographic diversification led to growth, despite what the company’s executives described as a “temporary reduction” of wholesale sales in North America and a new approach to distribution in China as a result of stricter trade policies, including MAP (minimum advertised price) in North America.

During the third quarter, the company’s wholesale segment’s net sales slipped 3.2 percent at current exchange rates, to €800 million, or down 3.6 percent at constant exchange rates. Its overall global retail segment’s net sales rose 7.2 percent at current exchange to €1,425 million for the period, up 7.9 percent at constant exchange rates.

For the nine months, the group’s net sales rose 3.5 percent to €6,944 million, compared to the prior year, or 1.8 percent at current exchange rates. Its wholesale division sales for the nine months were €2,770 million for the period, a dip of 0.3 percent at constant exchange rates, down 2.3 percent at current exchange rates. For the same period, the group’s overall retail division reported 2.8 percent gains at constant exchange rates to €4,174 million, or 1.4 percent at current rates.

Luxottica noted that the enforcement of its MAP policy in North America, which began July 1, “was critical in allowing Luxottica to develop the equity of its brand portfolio, clean up its distribution channels and defend the business of its wholesale customers. The company said the initiative has resulted in a decrease in sales to online operators of more than 60 percent, including a decrease in the number of discounted offers in the e-commerce channel.

Luxottica announced it was undertaking the policy in March of this year, as VMail reported, to protect its Ray-Ban brand in North America. In addition, in China, the reconfiguration of the Group’s distribution network and termination of several relationships with independent dealers resulted, at this early stage, in the withdrawal of goods from the marketplace equaling more than 30 percent of third quarter net sales in the country.

In the third quarter, North America sales results were mixed. The company cited wholesale sales down double digits, approximately 11 percent, due to the enforcement of MAP and the integration of the Oakley sport channel. The company stated, however, that sales for the first few weeks of October “are already showing signs of a turnaround.”

The company’s retail growth was solid, particularly at Sunglass Hut, where comps rose 2.9 percent for the third quarter on top of an already strong 7.8 percent gain in the third quarter of 2015. LensCrafters comps in the third quarter were down by 1.6 percent, impacted, the company said, by lower promotional advertising during the back-to-school period and the execution of digital eye exams and other processes at the group.

The company noted that the first LensCrafters’ locations had opened inside Macy’s, due to the previously announced agreement to open optical departments inside the national department store retailer’s locations. Forty-seven of those departments have opened year-to-date. For the third quarter, total North America group sales were €1,347 million, with wholesale sales of €234 million for the three-month period and retail sales of €1,113 million for the third quarter 2016.

The company pointed to strong sales in Europe, which reached €386 million for the quarter, as well as solid performance in the Asia-Pacific region where sales rose to €283 million and in Latin America where they increased to €134 million.

In their statement, Leonardo Del Vecchio, executive chairman, and Massimo Vian, CEO for product and operations, said, "We are pleased with the quality of our growth in the quarter and the vitality of our business in markets such as Europe, Latin America and Southeast Asia. We managed to achieve these results during a period of major investment, integration and organizational simplification of the Group, and an uncertain macroeconomic setting.

“The solid growth of retail sales more than offset the reduction in wholesale volumes, which were affected by the decision to sharply reduce sales to online operators in North America and the withdrawal of goods from Chinese independent distributors who were not aligned with the Group’s new distribution strategies. Ultimately, protecting the integrity and growth of our proprietary and licensed brands stands at the center of our strategy," their statement said.

They noted, “By year's end we will have substantially completed the integration of our businesses and we are already seeing the results of the various initiatives undertaken over the last 12 months. We therefore believe we can accelerate the growth of the Group starting in 2017, and keep it healthy and sustainable in the long run."