Annual Review 2012 - Luxottica

MANAGEMENT REPORT
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The income from operations, EBITDA and net income attributable to the Luxottica Group
stockholders adjusted to exclude the above non-recurring items would be as follow:
Adjusted Measures (19)
(thousands of Euro) 4Q 2012 % of net sales 4Q 2011 % of net sales % change
Adjusted income from operations 164,020 10.0% 139,259 9.2% 17.8%
Adjusted EBITDA 258,445 15.8% 224,747 14.9% 15.0%
Adjusted net income attributable to Luxottica Group
Stockholders 86,762 5.3% 72,701 4.8% 19.3%
Net Sales. Net sales increased by 8.2 percent, to Euro 1,632.3 million in the three-month
period ended December 31, 2012 from Euro 1,509.0 million in the same period of 2011.
Euro 55.1 million of the Euro 123.3 increase was attributable to the increased sales in
the manufacturing and wholesale distribution segment in the three-month period ended
December 31, 2012 as compared to the same period in 2011 and to the increased sales in
the retail distribution segment of Euro 68.1 million for the same period.
Net sales for the retail distribution segment increased by Euro 68.1 million, or 7.2 percent,
to Euro 1,021.0 million in the three-month period ended December 31, 2012 from
Euro 952.9 million in the same period in 2011. The segment experienced a 4.5 percent
improvement in comparable store sales (20) . In particular, there was a 3.9 percent increase in
comparable store sales for the North American retail operations, and 7.2 percent increase
for the Australian/New Zealand retail operations. In addition, there was a positive net
sales impact of Euro 42.0 million due to effects from currency fluctuations between the
Euro (which is our reporting currency) and other currencies in which we conduct business,
in particular the strengthening of the U.S. Dollar and Australian Dollar.
Net sales to third parties in the manufacturing and wholesale distribution segment
increased by Euro 55.1 million, or 9.9 percent, to Euro 611.3 million in the three-month
period ended December 31, 2012 from Euro 556.2 million in the same period in 2011.
This increase was mainly attributable to increased sales of most of our house brands, in
particular Ray-Ban and Oakley, led by the increase in optical sales, Persol and of some
designer brands such as Prada, Tiffany, Burberry, Ralph Lauren and the Coach line
launched in January 2012. Such increase was recorded in most of the Group’s markets. In
addition, there was a positive net sales impact of Euro 5.0 million due to positive currency
fluctuations, in particular a strengthening of the U.S. Dollar and other minor currencies,
including but not limited to the Australian Dollar and the Turkish Lira, partially offset by
weakening of Brazilian Real.
During the three-month period ended December 31, 2012, net sales in the retail distribution
segment accounted for approximately 62.5 percent of total net sales, as compared to
approximately 63.1 percent of total net sales for the same period in 2011.
(19) Adjusted measures are not in accordance with IFRS. For a further discussion of adjusted measures, see page 43 - “Non-IFRS Measures”.
(20) Comparable store sales reflects 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 in the same geographic area, and applies to
both periods the average exchange rate for the prior period.