Annual Review 2012 - Luxottica

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ANNUAL REPORT 2012
During the three-month period ended December 31, 2012, net sales in our retail distribution
segment in the United States and Canada comprised 76.1 percent of our total net sales in
this segment as compared to 76.6 percent of our total net sales in the same period of 2011.
In U.S. Dollars, retail net sales in the United States and Canada increased by 2.5 percent to
USD 1,008.0 million in the three-month period ended December 31, 2012 from USD 938.2
million for the same period in 2011, due to sales volume increases. During the three-month
period ended December 31, 2012, net sales in the retail distribution segment in the rest of
the world (excluding the United States and Canada) comprised 23.9 percent of our total
net sales in the retail distribution segment and increased by 9.7 percent to Euro 244.5
million in the three-month period ended December 31, 2012 from Euro 222.8 million, or
23.4 percent of our total net sales in the retail distribution segment for the same period in
2011, mainly due to an increase in consumer demand.
During the three-month period ended December 31, 2012, net sales to third parties
in our manufacturing and wholesale distribution segment in Europe were Euro 248.0
million, comprising 40.6 percent of our total net sales in this segment, compared to
Euro 227.9 million, or 41.0 percent of total net sales in the segment, for the same period
in 2011. The increase in net sales in Europe of Euro 20.1 million, or 8.8 percent, in the
three-month period ended December 31, 2012 was mainly due to a general increase
in consumer demand. Net sales to third parties in our manufacturing and wholesale
distribution segment in the United States and Canada were USD 192.2 million and
comprised 24.2 percent of our total net sales in this segment for the three-month
period ended December 31, 2012, as compared to USD 183.2 million, or 24.5 percent
of total net sales in the segment, for the same period of 2011. The increase in net sales
in the United States and Canada was primarily due to a general increase in consumer
demand and to the launch of the new Coach line. In the three-month period ended
December 31, 2012, net sales to third parties in our manufacturing and wholesale
distribution segment in the rest of the world were Euro 215.5 million, comprising 35.3
percent of our total net sales in this segment, as compared to Euro 191.8 million, or
34.5 percent of our net sales in this segment, in the same period of 2011. The increase
of Euro 23.7 million, or 12.4 percent, in the three-month period ended December 31,
2012 as compared to the same period of 2011, was due to an increase in consumer
demand, in particular in the emerging markets.
Cost of Sales. Cost of sales increased by Euro 7.6 million, or 1.4 percent, to Euro 553.9
million in the three-month period ended December 31, 2012 from Euro 546.3 million in
the same period of 2011. As a percentage of net sales, cost of sales decreased to 33.9
percent in the three-month period ended December 31, 2012 compared to 36.2 percent in
the same period of 2011 due to efficiencies achieved in the production cycle. The average
number of frames produced daily in our facilities increased to approximately 283,000 in the
three-month period ended December 31, 2012, as compared to approximately 246,400 in
the same period of 2011.
Gross Profit. Our gross profit increased by Euro 115.7 million, or 12.0 percent, to
Euro 1,078.4 million in the three-month period ended December 31, 2012 from Euro 962.7
million for the same period of 2011. As a percentage of net sales, gross profit increased
to 66.1 percent in the three-month period ended December 31, 2012 as compared to 63.8
percent in the same period of 2011, due to the factors noted above.