UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

July 28, 2015

 

COMMISSION FILE NO. 1 - 10421

 

LUXOTTICA GROUP S.p.A.

 

Piazzale Cadorna 3, MILAN, 20123 ITALY
(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes o No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

 

 

 


 


 

 

 

Set forth below is the test of a press release issued on July 27, 2015

 

Record results for Luxottica Group in the second quarter of 2015

 

Group’s adjusted3,5 net sales +21.4% breaking the ceiling of Euro 2.5 billion

Adjusted3,5 net income of Euro 314 million (+34%)

 

 

·                 Group’s adjusted3,5 net sales +21.4% (+6.6% at constant exchange rates2) to Euro 2.5 billion

 

           Wholesale division’s net sales +14.3% (+6.1% at constant exchange rates2) to Euro 1.1 billion

 

           Retail division’s adjusted3,5 net sales +27.3% (+7.1% at constant exchange rates2) to Euro 1.4 billion

 

·                 Adjusted3,5 operating income +31%, adjusted3,5 operating margin up by 160 bps to 20.8%

 

·                 Record adjusted3,5 net income of Euro 314 million with an adjusted3,5 net margin of 12.6%

 

·                 Free cash flow3 generation: Euro 261 million

 

·                 Ongoing investments to support long-term growth

 

 

Milan (Italy), July 27, 2015 - The Board of Directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear, met today to review the consolidated net sales and preliminary results for the second quarter and the six months ended June 30, 2015 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).

 

Second quarter of 20151

 

 

 

 

 

 

 

 

 

 

 

 

(Millions of Euro)

 

2Q 2014

 

2Q 2015

 

Change at constant
exchange rates
2

 

Change at current
exchange rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group net sales

 

2,060

 

2,457

 

+4.9%

 

+19.3%

 

Adjusted3,5

 

2,060

 

2,501

 

+6.6%

 

+21.4%

 

 

 

 

 

 

 

 

 

 

 

Wholesale division

 

935

 

1,068

 

+6.1%

 

+14.3%

 

 

 

 

 

 

 

 

 

 

 

Retail division

 

1,125

 

1,389

 

+4.0%

 

+23.4%

 

Adjusted3,5

 

1,125

 

1,433

 

+7.1%

 

+27.3%

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

396

 

500

 

 

 

+26.3%

 

Adjusted3,5

 

396

 

521

 

 

 

+31.4%

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Luxottica Group stockholders

 

235

 

295

 

 

 

+25.3%

 

Adjusted3,5

 

235

 

314

 

 

 

+33.6%

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

0.49

 

0.61

 

 

 

+24.2%

 

Adjusted3,5

 

0.49

 

0.66

 

 

 

+32.5%

 

 

 

 

 

 

 

 

 

 

 

Earnings per share in US$

 

0.68

 

0.68

 

 

 

+0.1%

 

Adjusted3,5

 

0.68

 

0.72

 

 

 

+6.8%

 

 

 

 

 

 

 

 

 

 

 

 

1



 

 

 

First half of 20151

 

 

 

 

 

 

 

 

 

 

 

 

(Millions of Euro)

 

1H 2014

 

1H 2015

 

Change at constant
exchange rates
2

 

Change at current
exchange rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group net sales

 

3,902

 

4,667

 

+5.1%

 

+19.6%

 

Adjusted3,5

 

3,902

 

4,752

 

+6.9%

 

+21.8%

 

 

 

 

 

 

 

 

 

 

 

Wholesale division

 

1,739

 

2,008

 

+6.9%

 

+15.4%

 

 

 

 

 

 

 

 

 

 

 

Retail division

 

2,163

 

2,659

 

+3.6%

 

+22.9%

 

Adjusted3,5

 

2,163

 

2,745

 

+6.9%

 

+26.9%

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

666

 

859

 

 

 

+28.8%

 

Adjusted3,5

 

666

 

879

 

 

 

+31.9%

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Luxottica Group stockholders

 

393

 

505

 

 

 

+28.7%

 

Adjusted3,5

 

393

 

525

 

 

 

+33.7%

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

0.83

 

1.05

 

 

 

+27.5%

 

Adjusted3,5

 

0.83

 

1.10

 

 

 

+32.5%

 

 

 

 

 

 

 

 

 

 

 

Earnings per share in US$

 

1.13

 

1.18

 

 

 

+3.8%

 

Adjusted3,5

 

1.13

 

1.22

 

 

 

+7.9%

 

 

 

 

 

 

 

 

 

 

 

 

In the first half of the year, Luxottica Group continued to grow across markets and brands, posting a 22% increase in sales on an adjusted3,5 basis, with adjusted3,5 operating margin up by 140 bps and adjusted3,5 net income up by 34%. The Group continued to invest in its long-term success, with a focus on emerging markets, strengthening its retail segment and developing new distribution channels.

 

“We saw record sales and profitability in the second quarter, which was all the more satisfying considering the second quarter of last year was the strongest in 2014.” commented Adil Khan and Massimo Vian, Chief Executive Officers of Luxottica.

 

“The results were solid in every region, proving the global sustainability of our business model. North America continued the trend we saw in the first quarter with 6% growth on an adjusted3,5 basis at constant exchange rates2, boosted by LensCrafters’ accelerating comparable store sales4. Europe posted a remarkable +9%, notwithstanding the significant results reported in the second quarter of 2014. Emerging markets recorded 22% sales growth, experiencing high demand for our eyewear collections, particularly in China, Southeast Asia, Brazil and Mexico.

 

We look at the second half of 2015 with confidence. The results of the first seven months of 2015, including July, came in strong and benefited from a good sun season, leading us to confirm our guidance for the full year. We believe the investments we’re making in the Group’s expansion, product and technological innovation and global talent will set us up for future success.”

 

2



 

 

 

During the first six months of 2015, Luxottica’s new leadership has been moving forward at a fast pace to set the foundation for long-term profitable growth. The key initiatives that have been introduced include the further integration of Oakley, strengthening the organization in China and the initial implementation of a price harmonization program.

 

Further integration of Oakley

 

During the second quarter, management accelerated the further integration of Oakley’s operations into Luxottica to better leverage the Group’s strengths and to increase investments in Oakley products and innovation. This plan is designed to accelerate growth and to unlock the full potential of the brand fueling “the disruptive DNA” which has made Oakley one of the most iconic names in sports.

 

The integration, which is targeted to be completed by year-end, is expected to generate significant synergies in the range of Euro 100 million once fully deployed. Integration activities are estimated to cost approximately Euro 50 million (including minor reorganization activities across the Group), of which approximately Euro 20 million are reported in the second quarter and approximately Euro 30 million will be reported in the second half of 2015.

 

 

Price harmonization program

 

In light of the current favorable currency environment the Company is deploying a global price harmonization program in order to address price differentials that exist among markets, in particular in Asia when compared to Europe.

 

 

Group performance for the second quarter and the first half of 20151

 

In the second quarter, the Group delivered adjusted3,5 sales growth of 21.4%, or +6.6% at constant exchange rates2 to Euro 2.5 billion, a record level for a single quarter. Both segments contributed to this increase in sales. Performance was in line with first quarter results with sales increasing by 14.3% in the Wholesale segment and, on an adjusted basis3,5, by 27.3% in the Retail segment.

 

During the first six months of the year, the Group’s adjusted3,5 sales rose by 21.8%, or +6.9% at constant exchange rates2, to Euro 4.8 billion. Net sales increased by 15.4% for the Wholesale division and by 26.9%, on an adjusted basis3,5, for the Retail division.

 

Group adjusted3,5 operating income soared by 31.4% to Euro 521 million in the second quarter, with an adjusted3,5 operating margin of 20.8%, up by 160 bps from the second quarter of last year. Adjusted3,5 operating margin expanded by 190 bps to 30% for the Wholesale segment and by 140 bps to 17.6% for the Retail segment.

 

During the first six months of the year, Group adjusted3,5 operating income rose by 31.9% to Euro 879 million, with a 140 bps increase in adjusted3,5 operating margin reaching 18.5%. The adjusted3,5 operating margin grew by 150 bps to 27.7% in the Wholesale segment and by 130 bps to 15.5.% in the Retail segment.

 

3



 

 

 

Adjusted3,5 net income for the second quarter of 2015 amounted to Euro 314 million, an increase of 33.6% from the second quarter of last year, resulting in adjusted3,5 EPS (earnings per share) of Euro 0.66 (US$ 0.72 at the exchange rate of €/US$ of 1.1053).

 

In the first half of 2015, adjusted3,5 net income was Euro 525 million, a 33.7% increase from the first half of last year and resulting in adjusted3,5 EPS (earnings per share) of Euro 1.10 (US$ 1.22 at the exchange rate of €/US$ 1.1158).

 

Free cash flow3 generation was Euro 261 million (after a tax-related cash payment of Euro 63 million) for the three months ended June 30, 2015. After paying dividends of Euro 690 million during the second quarter, net debt3 as of June 30, 2015 was Euro 1,447 million (Euro 1,005 million as of March 31, 2015), with a net debt/adjusted3,5 EBITDA ratio of 0.8x.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales breakdown

 

 

 

 

 

 

 

 

 

2015 vs. 2014

 

 

 

 

 

 

 

 

 

 

 

Current

 

Constant

 

(millions of Euro)

 

2Q 2014

 

%

 

2Q 2015

 

%

 

exchange rates

 

exchange rates(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America adj.(3,5)

 

1,102

 

53%

 

1,425

 

57%

 

29.3%

 

5.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

227

 

11%

 

293

 

12%

 

29.0%

 

5.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail adj.(3,5)

 

875

 

42%

 

1,132

 

45%

 

29.3%

 

5.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

487

 

24%

 

531

 

21%

 

9.1%

 

6.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

269

 

13%

 

318

 

13%

 

18.2%

 

6.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

116

 

6%

 

131

 

5%

 

13.8%

 

15.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rest of the World

 

86

 

4%

 

95

 

4%

 

10.1%

 

8.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group total adj.(3,5)

 

2,060

 

100%

 

2,501

 

100%

 

21.4%

 

6.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group total rep.

 

2,060

 

 

 

2,457

 

 

 

19.3%

 

4.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales breakdown

 

 

 

 

 

 

 

 

 

2015 vs. 2014

 

 

 

 

 

 

 

 

 

 

 

Current

 

Constant

 

(millions of Euro)

 

1H 2014

 

%

 

1H 2015

 

%

 

exchange rates

 

exchange rates(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America adj.(3,5)

 

2,119

 

54%

 

2,740

 

58%

 

29.3%

 

6.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

436

 

11%

 

568

 

12%

 

30.4%

 

7.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail adj.(3,5)

 

1,683

 

43%

 

2,172

 

46%

 

29.1%

 

5.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

879

 

23%

 

956

 

20%

 

8.9%

 

6.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

520

 

13%

 

616

 

13%

 

18.4%

 

6.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

222

 

6%

 

262

 

5%

 

17.6%

 

16.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rest of the World

 

162

 

4%

 

178

 

4%

 

9.9%

 

7.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group total adj.(3,5)

 

3,902

 

100%

 

4,752

 

100%

 

21.8%

 

6.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group total rep.

 

3,902

 

 

 

4,667

 

 

 

19.6%

 

5.1%

 

 

 

North America

 

4



 

 

 

Benefiting from a solid trading environment, North America continued the first quarter trend delivering +29.3% growth in adjusted3,5 sales at current exchange rates (+6% in US$), with strength from both the Wholesale and Retail segments.

The Wholesale division’s strong momentum continued notwithstanding a few weeks during the quarter where sales were negatively impacted following the commencement of the integration project whereby Oakley’s wholesale activities will be integrated into the wholesale activities of the Group.

The Retail division also enjoyed healthy growth, reflecting LensCrafters’ accelerating comparable store sales4 during the second quarter of 2015 which were up by 6.4%.

 

 

Europe

 

Sales in Europe continued to accelerate in the second quarter, up by 9.1% at current exchange rates. Germany, UK, Nordic and Eastern countries, in particular, contributed to the performance of the Wholesale division in Europe. Within the Retail segment, Sunglass Hut enjoyed double-digit comparable store sales4 progression driven by Continental Europe.

 

 

Asia-Pacific

 

The Group continued on its path of solid growth in the Asia-Pacific region, with sales up by 18.2% at current exchange rates, boosted by particularly strong performance in China (+48%) and India (+34%). The performance of the Retail division was mixed in the region, due to the Australian market, where OPSM continued to post negative comparable store sales4 but Sunglass Hut delivered on the strong momentum seen throughout the second quarter of the year.

 

 

Latin America

 

During the second quarter of 2015, the Group continued to deliver consistent growth across Latin America. Sales in the region grew by 13.8% at current exchange rates driven by the Retail division’s strong comparable store sales4, with GMO and Sunglass Hut increasing at double-digit rates throughout the quarter, as well as the contribution from the performance of 48 new stores opened since the second quarter of 2014.

In Brazil, the primary market in the region, both the Wholesale and Retail segments confirmed the strength of Luxottica’s competitive position by continuing to grow at a double-digit pace at constant exchange rates2,6.

The Group continued the Wholesale division’s expansion strategy in the region with the opening of new subsidiaries in Bogota, Colombia and in Chile’s capital city of Santiago de Chile during the second quarter of 2015.

 

 

§

 

Results for the second quarter and first half of 2015 will be discussed today during a conference call with the financial community starting at 7:00pm CEST (6:00PM GMT, 1:00PM US EDT). The call will be available via live webcast and can be accessed at www.luxottica.com

 

 

The officer responsible for preparing the Company’s financial reports, Stefano Grassi, declares, pursuant to Article 154-bis, Section 2 of the Consolidated Law on Finance, that the accounting

 

5



 

 

 

information contained in this press release is consistent with the data in the supporting documents, books of accounts and other accounting records.

 

 

 

 

Contacts

 

Alessandra Senici

Group Investor Relations and Corporate Communications Director

Tel.: +39 (02) 8633 4870

Email: InvestorRelations@luxottica.com

www.luxottica.com/en/company/investors

 

Notes on the press release

 

1 All comparisons, including percentage changes, are between the three-month and six-month periods ended June 30, 2014 and June 30, 2015, respectively.

 

2 Figures at constant exchange rates have been calculated using the average exchange rates in effect for the corresponding period in the previous year. For further information, please refer to the attached tables.

 

3 EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net sales, adjusted operating income/profit, adjusted operating margin, free cash flow, net debt, net debt/adjusted EBITDA ratio, adjusted net income and adjusted EPS are not measures in accordance with IFRS.

 

4 Comparable store sales reflect the change in sales from one period to another that, for comparison purposes, includes in the calculation only stores open in the more recent period that also were open during the comparable prior period, and applies to both periods the average exchange rate for the prior period and the same geographic area.

 

5 The adjusted data for the three-month and six-month periods ended June 30, 2015 (i) do not take into account  a change in the presentation of a component of EyeMed net sales that was previously included on a gross basis and is currently included on a net basis due to a change in the terms of an insurance underwriting agreement, resulting in a reduction to net sales on a reported basis of approximately Euro 44 million in the second quarter and approximately Euro 86 million in the first half and (ii) exclude the costs relating to the Oakley integration project (including minor reorganization activities across the Group) which had a Euro 20.4 million impact on Group operating income and a Euro 19.6 million impact on Group net income in the second quarter.

 

6 At current exchange rates sales in Brazil increased by 7.3% in the second quarter of 2015.

 

 

 

 

Luxottica Group S.p.A.

 

Luxottica Group is a leader in premium, luxury and sports eyewear with over 7,000 optical and sun retail stores in North America, Asia-Pacific, China, South Africa, Latin America and Europe, and a strong, well-balanced brand portfolio. House brands include Ray-Ban, the world’s most famous sun eyewear brand, Oakley, Vogue Eyewear, Persol, Oliver Peoples, Alain Mikli and Arnette, while licensed brands include Giorgio Armani, Bulgari, Burberry, Chanel, Coach, Dolce & Gabbana, DKNY, Polo Ralph Lauren, Prada, Michael Kors, Starck Eyes, Tiffany and Versace. In addition to a global wholesale network involving 130 different countries, the Group manages leading retail chains in major markets, including LensCrafters, Pearle Vision and ILORI in North America, OPSM and Laubman & Pank in Asia-Pacific, LensCrafters in China, GMO in Latin America and Sunglass Hut worldwide. The Group’s products are designed and manufactured at its six manufacturing plants in Italy, two wholly owned plants in the People’s Republic of China, one plant in Brazil and one plant in the United States devoted to the production of sports eyewear. In 2014, Luxottica Group posted net sales of over Euro 7.6 billion. Additional information on the Group is available at www.luxottica.com.

 

 

Safe Harbor Statement

 

Certain statements in this press release may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those which are anticipated. Such risks and uncertainties include, but are not limited to,

 

6



 

 

 

the ability to manage the effects of the current uncertain international economic outlook, the ability to successfully acquire and integrate new businesses, the ability to predict future economic conditions and changes to consumer preferences, the ability to successfully introduce and market new products, the ability to maintain an efficient distribution network, the ability to achieve and manage growth, the ability to negotiate and maintain favorable license agreements, the availability of correction alternatives to prescription eyeglasses, fluctuations in exchange rates, changes in local conditions, the ability to protect intellectual property, the ability to maintain relations with those hosting our stores, computer system problems, inventory-related risks, credit and insurance risks, changes to tax regimes as well as other political, economic and technological factors and other risks and uncertainties referred to in Luxottica Group’s filings with the U.S. Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, and we do not assume any obligation to update them.

 

 

– APPENDIX FOLLOWS –

 

7



 

LUXOTTICA GROUP

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

 

FOR THE THREE-MONTH PERIODS ENDED

 

JUNE 30, 2015 AND JUNE 30, 2014

 

In accordance with IAS/IFRS

 

 

KEY FIGURES IN THOUSANDS OF EURO (1)

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

% Change

 

 

 

 

 

 

 

 

 

NET SALES

 

2,456,861

 

2,059,979

 

19.3%

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO LUXOTTICA GROUP STOCKHOLDERS

 

294,728

 

235,214

 

25.3%

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER SHARE (ADS)(2):

 

0.61

 

0.49

 

24.2%

 

 

 

 

 

 

 

 

 

 

 

 

KEY FIGURES IN THOUSANDS OF U.S. DOLLARS (1) (3)

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

% Change

 

 

 

 

 

 

 

 

 

NET SALES

 

2,715,569

 

2,824,437

 

-3.9%

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO LUXOTTICA GROUP STOCKHOLDERS

 

325,763

 

322,502

 

1.0%

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER SHARE (ADS) (2):

 

0.68

 

0.68

 

0.1%

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

(1)  Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)  Weighted average number of outstanding shares

 

479,304,304

 

475,221,228

 

 

 

 

 

 

 

 

 

 

 

(3)  Average exchange rate (in U.S. Dollars per Euro)

 

1.1053

 

1.3711

 

 

 

 

Luxottica Group 2Q15, Table 1 of 6

 



 

LUXOTTICA GROUP

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

 

FOR THE SIX-MONTH PERIODS ENDED

 

JUNE 30, 2015 AND JUNE 30, 2014

 

In accordance with IFRS

 

 

KEY FIGURES IN THOUSANDS OF EURO (1)

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

% Change

 

 

 

 

 

 

 

 

 

NET SALES

 

4,666,712

 

3,902,313

 

19.6%

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO LUXOTTICA GROUP STOCKHOLDERS

 

505,113

 

392,541

 

28.7%

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER SHARE (ADS) (2)

 

1.05

 

0.83

 

27.5%

 

 

 

 

 

 

 

 

 

 

 

 

KEY FIGURES IN THOUSANDS OF U.S. DOLLARS (1) (3)

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

% Change

 

 

 

 

 

 

 

 

 

NET SALES

 

5,207,117

 

5,347,339

 

-2.6%

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO LUXOTTICA GROUP STOCKHOLDERS

 

563,605

 

537,899

 

4.8%

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER SHARE (ADS) (2)

 

1.18

 

1.13

 

3.8%

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

(1)  Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)  Weighted average number of outstanding shares

 

478,819,264

 

474,464,497

 

 

 

 

 

 

 

 

 

 

 

(3)  Average exchange rate (in U.S. Dollars per Euro)

 

1.1158

 

1.3703

 

 

 

 

Luxottica Group 2Q15, Table 2 of 6

 



 

LUXOTTICA GROUP

 

CONSOLIDATED INCOME STATEMENT

FOR THE THREE-MONTH PERIODS ENDED

JUNE 30, 2015 AND JUNE 30, 2014

 

In accordance with IAS/IFRS

 

 

KEY FIGURES IN THOUSANDS OF EURO(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

% of sales

 

2014

 

% of sales

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

2,456,861

 

100.0%

 

2,059,979

 

100.0%

 

 

19.3%

 

COST OF SALES

 

(748,208)

 

 

 

(685,672)

 

 

 

 

 

 

GROSS PROFIT

 

1,708,653

 

69.5%

 

1,374,307

 

66.7%

 

 

24.3%

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

SELLING EXPENSES

 

(713,264)

 

 

 

(572,435)

 

 

 

 

 

 

ROYALTIES

 

(45,651)

 

 

 

(39,626)

 

 

 

 

 

 

ADVERTISING EXPENSES

 

(170,037)

 

 

 

(140,290)

 

 

 

 

 

 

GENERAL AND ADMINISTRATIVE EXPENSES

 

(279,490)

 

 

 

(225,823)

 

 

 

 

 

 

TOTAL

 

(1,208,442)

 

 

 

(978,175)

 

 

 

 

 

 

OPERATING INCOME

 

500,211

 

20.4%

 

396,132

 

19.2%

 

 

26.3%

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

2,385

 

 

 

3,009

 

 

 

 

 

 

INTEREST EXPENSES

 

(28,607)

 

 

 

(27,289)

 

 

 

 

 

 

OTHER - NET

 

(731)

 

 

 

(1,698)

 

 

 

 

 

 

OTHER INCOME (EXPENSES)-NET

 

(26,954)

 

 

 

(25,978)

 

 

 

 

 

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

473,258

 

19.3%

 

370,154

 

18.0%

 

 

27.9%

 

PROVISION FOR INCOME TAXES

 

(178,504)

 

 

 

(133,285)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

294,754

 

 

 

236,869

 

 

 

 

 

 

OF WHICH ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

 

- LUXOTTICA GROUP STOCKHOLDERS

 

294,728

 

12.0%

 

235,214

 

11.4%

 

 

25.3%

 

- NON-CONTROLLING INTERESTS

 

26

 

0.0%

 

1,655

 

0.1%

 

 

 

 

NET INCOME

 

294,754

 

12.0%

 

236,869

 

11.5%

 

 

24.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER SHARE (ADS):

 

0.61

 

 

 

0.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FULLY DILUTED EARNINGS PER SHARE (ADS):

 

0.61

 

 

 

0.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF OUTSTANDING SHARES

 

479,304,304

 

 

 

475,221,228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FULLY DILUTED AVERAGE NUMBER OF SHARES

 

481,121,637

 

 

 

478,436,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

(1) Except earnings per share (ADS), which are expressed in Euro

 

Luxottica Group 2Q15, Table 3 of 6

 



 

LUXOTTICA GROUP

 

CONSOLIDATED INCOME STATEMENT

FOR THE SIX-MONTH PERIODS ENDED

JUNE 30, 2015 AND JUNE 30, 2014

 

In accordance with IFRS

 

KEY FIGURES IN THOUSANDS OF EURO (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

% of sales

 

2014

 

% of sales

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

4,666,712

 

100.0%

 

3,902,313

 

100.0%

 

 

19.6%

 

COST OF SALES

 

(1,476,094)

 

 

 

(1,349,814)

 

 

 

 

 

 

GROSS PROFIT

 

3,190,617

 

68.4%

 

2,552,499

 

65.4%

 

 

25.0%

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

SELLING EXPENSES

 

(1,397,199)

 

 

 

(1,120,103)

 

 

 

 

 

 

ROYALTIES

 

(89,565)

 

 

 

(75,629)

 

 

 

 

 

 

ADVERTISING EXPENSES

 

(305,974)

 

 

 

(248,794)

 

 

 

 

 

 

GENERAL AND ADMINISTRATIVE EXPENSES

 

(539,350)

 

 

 

(441,627)

 

 

 

 

 

 

TOTAL

 

(2,332,088)

 

 

 

(1,886,153)

 

 

 

 

 

 

OPERATING INCOME

 

858,529

 

18.4%

 

666,346

 

17.1%

 

 

28.8%

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

5,384

 

 

 

5,840

 

 

 

 

 

 

INTEREST EXPENSES

 

(58,696)

 

 

 

(53,318)

 

 

 

 

 

 

OTHER - NET

 

710

 

 

 

(353)

 

 

 

 

 

 

OTHER INCOME (EXPENSES)-NET

 

(52,602)

 

 

 

(47,832)

 

 

 

 

 

 

INCOME BEFORE PROVISION FOR

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAXES

 

805,927

 

17.3%

 

618,514

 

15.8%

 

 

30.3%

 

PROVISION FOR INCOME TAXES

 

(299,156)

 

 

 

(222,667)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

506,770

 

10.9%

 

395,847

 

10.1%

 

 

28.0%

 

OF WHICH ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

 

- LUXOTTICA GROUP STOCKHOLDERS

 

505,113

 

10.8%

 

392,541

 

10.1%

 

 

28.7%

 

- NON-CONTROLLING INTERESTS

 

1,658

 

0.0%

 

3,306

 

0.1%

 

 

 

 

NET INCOME

 

506,770

 

10.9%

 

395,847

 

10.1%

 

 

28.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER SHARE (ADS):

 

1.05

 

 

 

0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FULLY DILUTED EARNINGS PER SHARE (ADS):

 

1.05

 

 

 

0.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF OUTSTANDING SHARES

 

478,819,264

 

 

 

474,464,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FULLY DILUTED AVERAGE NUMBER OF SHARES

 

480,763,466

 

 

 

477,917,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

(1) Except earnings per share (ADS), which are expressed in Euro

 

Luxottica Group 2Q15, Table 4 of 6

 



 

LUXOTTICA GROUP

 

CONSOLIDATED BALANCE SHEET

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

 

In accordance with IFRS

 

 

 

 

 

KEY FIGURES IN THOUSANDS OF EURO

JUNE 30, 2015

 

DECEMBER 31, 2014

 

 

 

 

CURRENT ASSETS:

 

 

 

CASH AND CASH EQUIVALENTS

1,042,596

 

1,453,587

ACCOUNTS RECEIVABLE - NET

1,077,073

 

754,306

INVENTORIES - NET

812,792

 

728,404

OTHER ASSETS

210,321

 

231,397

TOTAL CURRENT ASSETS

3,142,782

 

3,167,695

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS:

 

 

 

PROPERTY, PLANT AND EQUIPMENT - NET

1,383,697

 

1,317,617

GOODWILL

3,543,975

 

3,351,263

INTANGIBLE ASSETS - NET

1,446,548

 

1,384,501

INVESTMENTS

62,571

 

61,176

OTHER ASSETS

116,670

 

123,848

DEFERRED TAX ASSETS

199,723

 

188,199

TOTAL NON-CURRENT ASSETS

6,753,183

 

6,426,603

 

 

 

 

TOTAL

9,895,965

 

9,594,297

 

 

 

 

CURRENT LIABILITIES:

 

 

 

BANK OVERDRAFTS

128,672

 

151,303

CURRENT PORTION OF LONG-TERM DEBT

660,120

 

626,788

ACCOUNTS PAYABLE

833,060

 

744,272

INCOME TAXES PAYABLE

122,989

 

42,603

SHORT-TERM PROVISIONS FOR RISKS AND OTHER CHARGES

136,639

 

187,719

OTHER LIABILITIES

646,314

 

636,055

TOTAL CURRENT LIABILITIES

2,527,793

 

2,388,740

 

 

 

 

NON-CURRENT LIABILITIES:

 

 

 

LONG-TERM DEBT

1,700,756

 

1,688,415

EMPLOYEE BENEFITS

97,690

 

138,475

DEFERRED TAX LIABILITIES

282,972

 

266,896

LONG-TERM PROVISIONS FOR RISKS AND OTHER CHARGES

95,950

 

99,223

OTHER LIABILITIES

90,607

 

83,770

TOTAL NON-CURRENT LIABILITIES

2,267,975

 

2,276,778

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

LUXOTTICA GROUP STOCKHOLDERS’ EQUITY

5,096,426

 

4,921,479

NON-CONTROLLING INTERESTS

3,771

 

7,300

TOTAL STOCKHOLDERS’ EQUITY

5,100,197

 

4,928,779

 

 

 

 

 

 

 

 

TOTAL

9,895,965

 

9,594,297

 

 

 

 

 

Luxottica Group 2Q15, Table 5 of 6

 



 

LUXOTTICA GROUP

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

FOR THE SIX-MONTH PERIODS ENDED

JUNE 30, 2015 AND JUNE 30, 2014

- SEGMENTAL INFORMATION -

 

In accordance with IFRS

 

 

 

 

 

 

 

 

 

 

 

 

In thousands of Euro

 

Manufacturing
and
Wholesale

 

Retail

 

Inter-Segment
Transactions and
Corporate Adj.

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

2,007,928

 

2,658,784

 

 

 

4,666,712

 

Operating Income

 

539,308

 

424,127

 

(104,906)

 

858,529

 

% of Sales

 

26.9%

 

16.0%

 

 

 

18.4%

 

Capital Expenditures

 

83,920

 

132,965

 

 

 

216,886

 

Depreciation and Amortization

 

80,130

 

112,410

 

43,174

 

235,715

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

1,739,399

 

2,162,913

 

 

 

3,902,313

 

Operating Income

 

456,264

 

306,842

 

(96,760)

 

666,346

 

% of Sales

 

26.2%

 

14.2%

 

 

 

17.1%

 

Capital Expenditures

 

68,490

 

105,428

 

 

 

173,919

 

Depreciation and Amortization

 

57,313

 

85,716

 

38,653

 

181,681

 

 

 

 

 

 

 

 

 

 

 

 

Luxottica Group 2Q15, Table 6 of 6

 



 

Non-IFRS Measures: Adjusted measures

 

In order to provide a supplemental comparison of current period results of operations to prior periods, we have adjusted for certain transactions or events.

 

We have made such adjustments to the following measures: EBITDA, EBITDA margin, net sales, cost of sales, operating income, operating margin, net income and earnings per share.

 

For comparative purposes, the foregoing measures have been adjusted to include sales of the EyeMed division in 2015. Following the modification of an EyeMed reinsurance agreement with an existing underwriter, the Group assumes less reinsurance revenues and less claims expense. The impact of the contract for the six month period ended June 30 2015 was Euro 85.8 million (the “Eyemed Adjustment”).

 

In addition, management has made adjustments to fiscal year 2014 measures as described in the footnotes to the tables that contain such fiscal year 2014 data.

 

The Company believes that these adjusted measures are useful to both management and investors in evaluating the Company’s operating performance compared with that of other companies in its industry because they exclude the impact of certain items that are not relevant to the Company’s operating performance.

 

The adjusted measures referenced above are not measures of performance in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).  We include these adjusted measures in this presentation in order to provide a supplemental view of operations that excludes items that are unusual, infrequent or unrelated to our ongoing core operations.

 

These adjusted measures are not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IFRS.  Rather, these non/IFRS measures should be used as a supplement to IFRS results to assist the reader in better understanding the operational performance of the Company.  The Company cautions that these adjusted measures are not defined terms under IFRS and their definitions should be carefully reviewed and understood by investors.  Investors should be aware that Luxottica Group’s method of calculating these adjusted measures may differ from methods used by other companies.

 

The Company recognizes that there are limitations in the usefulness of adjusted measures due to the subjective nature of items excluded by management in calculating adjusted comparisons.  We compensate for the foregoing limitations by using these adjusted measures as a comparative tool, together with IFRS measures, to assist in the evaluation of our operating performance.

 

See the tables on the following pages for a reconciliation of the adjusted measures discussed above to their most directly comparable IFRS financial measures or, in the case of adjusted EBITDA and adjusted EBITDA margin, to EBITDA and EBITDA margin, respectively, which are also non-IFRS measures. For a discussion of EBITDA and EBITDA margin and a reconciliation of EBITDA and EBITDA margin to their most directly comparable IFRS financial measures, see the tables on the pages immediately following the reconciliation of the adjusted measures.

 



 

Non-IFRS Measure: Reconciliation between reported and adjusted P&L items

Millions of Euro

 

Luxottica Group

6M15

 

6M14

 

 

 

 

 

Net Sales

Cost Of Sales

EBITDA

Operating Income

Net Income

EPS

 

Net Sales

EBITDA

Operating Income

Net Income

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

4,666.7

(1,476.1)

1,094.2

858.5

505.1

1.05

 

3,902.3

848.0

666.3

392.5

0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

> EyeMed Adjustment

85.8

(85.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

> Oakley’s integration costs and other minor projects

 

 

20.4

20.4

19.6

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted

4,752.5

(1,561.9)

1,114.6

878.9

524.7

1.10

 

3,902.3

848.0

666.3

392.5

0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Division

6M15

 

6M14

 

 

 

 

 

Net Sales

Cost Of Sales

EBITDA

Operating Income

Net Income

EPS

 

Net Sales

EBITDA

Operating Income

Net Income

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

2,007.9

(748.3)

619.4

539.3

n.a.

n.a.

 

1,739.4

513.6

456.3

n.a.

n.a.

 

 

 

 

 

 

 

 

 

 

 

 

 

> Oakley’s integration costs and other minor projects

 

 

16.7

16.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted

2,007.9

(748.3)

636.1

556.0

n.a.

n.a.

 

1,739.4

513.6

456.3

n.a.

n.a.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Division

6M15

 

6M14

 

 

 

 

 

Net Sales

Cost Of Sales

EBITDA

Operating Income

Net Income

EPS

 

Net Sales

EBITDA

Operating Income

Net Income

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

2,658.8

(727.8)

536.5

424.1

n.a.

n.a.

 

2,162.9

392.6

306.8

n.a.

n.a.

 

 

 

 

 

 

 

 

 

 

 

 

 

> EyeMed Adjustment

85.8

(85.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted

2,744.5

(813.5)

536.5

424.1

n.a.

n.a.

 

2,162.9

392.6

306.8

n.a.

n.a.

 



 

Non-IAS/IFRS Measure: Reconciliation between reported and adjusted P&L items

Millions of Euro

 

Luxottica Group

2Q15

 

2Q14

 

 

 

 

 

Net Sales

Cost Of Sales

EBITDA

Operating Income

Net Income

EPS

 

Net Sales

EBITDA

Operating Income

Net Income

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

2,456.9

(748.2)

624.3

500.2

294.7

0.61

 

2,060.0

488.2

396.1

235.2

0.49

 

 

 

 

 

 

 

 

 

 

 

 

 

> EyeMed Adjustment

43.7

(43.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

> Oakley’s integration costs and other minor projects

 

 

20.4

20.4

19.6

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted

2,500.6

(792.0)

644.7

520.6

314.3

0.66

 

2,060.0

488.2

396.1

235.2

0.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Division

2Q15

 

2Q14

 

 

 

 

 

Net Sales

Cost Of Sales

EBITDA

Operating Income

Net Income

EPS

 

Net Sales

EBITDA

Operating Income

Net Income

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

1,068.1

(379.7)

348.3

303.8

n.a.

n.a.

 

934.8

291.8

262.3

n.a.

n.a.

 

 

 

 

 

 

 

 

 

 

 

 

 

> Oakley’s integration costs and other minor projects

 

 

16.7

16.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted

1,068.1

(379.7)

365.0

320.5

n.a.

n.a.

 

934.8

291.8

262.3

n.a.

n.a.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Division

2Q15

 

2Q14

 

 

 

 

 

Net Sales

Cost Of Sales

EBITDA

Operating Income

Net Income

EPS

 

Net Sales

EBITDA

Operating Income

Net Income

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

1,388.8

(368.5)

309.9

252.5

n.a.

n.a.

 

1,125.2

225.6

182.4

n.a.

n.a.

 

 

 

 

 

 

 

 

 

 

 

 

 

> EyeMed Adjustment

43.7

(43.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted

1,432.5

(412.2)

309.9

252.5

n.a.

n.a.

 

1,125.2

225.6

182.4

n.a.

n.a.

 



 

Non-IFRS Measure: EBITDA and EBITDA margin

 

EBITDA represents net income before non-controlling interest, taxes, other income/expense, depreciation and amortization. EBITDA margin means EBITDA divided by net sales.

 

The Company believes that EBITDA is useful to both management and investors in evaluating the Company’s operating performance compared with that of other companies in its industry. Our calculation of EBITDA allows us to compare our operating results with those of other companies without giving effect to financing, income taxes and the accounting effects of capital spending, which items may vary for different companies for reasons unrelated to the overall operating performance of a company’s business.

 

EBITDA and EBITDA margin are not measures of performance under International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). We include them in this prese