Luxottica expects strong adjusted net profit growth in FY17
In a preliminary results statement, Luxottica Group said that the company closed the fourth quarter of 2017 with sales up 4.3 percent at constant exchange down 2.3 percent at current exchange rates as a result of the strong appreciation of the euro against the group’s other primary currencies. The company added that the fourth quarter results were driven by the acceleration of sales in both the retail and wholesale divisions and the positive performance of the business in Europe, North America, Australia and Brazil.
In 2017, the group's revenues rose to 9,157 million euros (11,325 million dollars), up 2.2 percent at constant exchange and 0.8 percent at current exchange rates). The company said, free cash flow is expected to reach record levels and adjusted net income is expected to grow strongly.
Review of the fourth quarter results
Luxottica added that the fourth quarter of 2017 was the best of the year for the wholesale business, retail comparable store sales, Sunglass Hut performance in its main geographies and ecommerce sales.
In the fourth quarter, the wholesale division grew by 4.7 percent at constant exchange but declined 0.4 percent at current exchange rates, posting a double-digit growth in North America and Brazil. The retail division’s net sales rose by 4.1 percent at constant exchange but were down by 3.3 percent at current exchange rates due to the contribution from new stores and with comparable store sales flat to the fourth quarter of 2016 but showing improvement from the third quarter of 2017.
Sunglass Hut revenues were up 5 percnt at constant exchange rates. LensCrafters continued its focus on transforming its business model and reported negative. During the fourth quarter, Ray-Ban, the company said, continued to grow in every segment and region and Oakley, with rising sales, recorded its best quarterly growth when looking at quarterly performance over the previous two-year period.
“Regarding 2018, the group is looking forward with confidence to the growth of the next twelve months,” said Leonardo Del Vecchio, Executive Chairman of the Luxottica Group in a statement.
Picture:Sunglass Hut website