Luxottica 3Q Sales Reach EUR2.2 B; U.S. Wholesale Falls -- Update
24 October 2016 - 7:42PM
Dow Jones News
By Manuela Mesco
MILAN--Italy's eyewear firm Luxottica said Monday its
third-quarter sales grew 3.2% compared with the same period last
year to reach 2.2 billion euros ($2.4 billion), as Europe and Latin
America supported growth.
The company, which makes eyewear for the likes of Dolce &
Gabbana and Chanel and owns the Ray-Ban brand, said that its third
quarter sales result was impacted by the reorganization of some of
its operations particularly at wholesale level.
The changes are part of an attempt to simplify the business and
streamline costs, chief executive Massimo Vian said to
analysts.
The luxury-good sector is going through significant changes as
many brands struggle to keep up with changing customer behavior.
Volatile currency and macroeconomic conditions have further
impacted the sector's growth.
As a result, several companies are rethinking their distribution
and retail strategies and are cutting costs.
Luxottica--which is working to simplify its technological,
manufacturing and logistics infrastructure and processes--said that
it expects the business to strengthen next year also as a result of
the current reorganization.
In North America, the firm's main market, sales were up almost
3% on the year, but fell strongly in the wholesale segment. The
company said the decline was caused mainly by the decision to cut
sales to online operators in the region and by the ongoing
integration process for the Oakley sports brand.
In China, the wholesale division also suffered as the company
changed its distribution approach. Luxottica got rid of several
independent sellers and withdrew some goods from the market.
As a whole, the company's wholesale division totalled EUR800
million in sales, down 3.2%. Sales in the retail division grew
7.2%.
(END) Dow Jones Newswires
October 24, 2016 14:27 ET (18:27 GMT)
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