Group results in 2015
|(Millions of Euro, except for EPS − in Euro)||FY 2014 at current exchange rates||FY 2015 at current exchange rates||Changes at constant exchange rates2||Changes at current exchange rates|
|Group net sales||7,652||8,837||+4.3%||+15.5%|
|Net income attributable to Luxottica Group stockholders||643||804||+25.1%||Adjusted3,5||687||854||+24.2%||Earning per share||1.35||1.68||+24.2%||Adjusted3,5||1.44||1.78||+23.3%||Earning per share in US$||1.79||1.86||+3.7%||Adjusted3,5||1.92||1.98||+3.0%|
The Wholesale and Retail divisions both performed well, contributing to full year results with an increase respectively of 12.5% and 20.3% on an adjusted3,5 basis (+6.9% and +4.5% at constant exchange rates2) over 2014 results. The Group saw stellar increases in e-commerce revenues, which were up +50%, a strong growth of the wholesale business in all geographies and notable performance from its top retail chains.
Sunglass Hut confirmed it remains a leader in the sun category worldwide with double-digit growth in total sales for the fifth consecutive year: +24.6% (+10% at constant exchange rates2), with Australia, Continental Europe Brazil and Mexico as the leading performers. LensCrafters in North America strongly contributed with comparable stores sales4 up by 4.3%. The retail business reported strong results notwithstanding that the fiscal calendar of the division in North America was nine days shorter than in 20146, corresponding to approximately Euro 90 million in sales. This difference is a result of the presence of the 53rd week in the 2014 retail calendar only and the Group’s decision to align its retail reporting calendars with the Group financial reporting calendar which ends on December 31st.
By geographies, Europe and emerging markets drove growth in 2015 with an increase respectively of +7.8% and +14.5% (+6.8% and +13.3% at constant exchange rates2). North America also registered excellent results, benefitting from buoyant domestic demand.
Thanks to continuous efforts around efficiency initiatives, adjusted3,5 operating income and net income grew in 2015 by more than 20%, bringing the adjusted3,5 operating margin and net margin to 16.0% and 9.5%, respectively, and the adjusted3,5 EPS (earnings per share) to Euro 1.78 (US$ 1.98 at the exchange rate of €/US$ of 1.1095). Free cash flow3 in the 12-month period amounted to Euro 768 million, an excellent result confirming the solidity of the Group's results. Net debt3 as of December 31, 2015 was Euro 1,006 million, with a net debt/adjusted3,5 EBITDA ratio of 0.5x.
In 2015, North America also proved to be one of the key growth engines for the Group, with adjusted3,5 net sales increasing by 22.9% (+3.7% at constant exchange rates2). The Wholesale division’s net sales increased by 25.3% (+6.3% at constant exchange rates2), a particularly positive result when compared with strong growth in 2014. During the year, the Group successfully completed the integration of Oakley eyewear. Luxottica’s leading retail chains posted favorable results with comparable store sales4 rising by 3.9%, including a strong contribution by LensCrafters (+4.3%) driven by a significant increase in the number of consumers at these stores and eye exams provided. Sunglass Hut also continued its growth in the sun category, bucking the trend for the fashion accessories sector, with comparable store sales4 up 4.7% thanks to its unique customer experience and a comprehensive in-store product assortment.
Europe contributed to the Group’s overall growth with positive results in both the Wholesale and Retail divisions. Increased sales of 7.8% in the region (+6.8% at constant exchange rates2) reflect significant improvements recorded particularly in Italy, Spain, Germany, United Kingdom, Eastern Europe and Turkey. Results of the Wholesale division, up by 5.1% on a year-over-year basis, were enhanced by the growing penetration of the STARS program that includes today more than 4,700 doors in the region. The Retail division posted an increase of +24.9% (+17.3% at constant exchange rates2), with Sunglass Hut recording double-digit growth in comparable store sales4 in Continental Europe and net openings of approximately 50 new stores.
The Asia-Pacific region closed 2015 with increased net sales of 12.2% (+5.5% at constant exchange rates2). The Wholesale division reported a net sales increase of 19.7% (+8.6% at constant exchange rates2), and the Retail division was up 6.9% (+3.3% at constant exchange rates2). Net sales in Asia improved by 24% (+10% at constant exchange rates2) driven by Mainland China, Japan, India and Southeast Asia, which benefited from the strong performance of the Wholesale division along with the launch of 42 Sunglass Hut stores between Mainland China and Thailand this year. In 2015, comparable store sales4 of the Retail division in Australia was up by 1.5%: the double-digit growth in comparable store sales4 of Sunglass Hut more than offset the weakness of OPSM which continues a path of refocusing its activities and strategies.
During 2015, the Group confirmed its strong growth trend in Latin America, notwithstanding the devaluation of the Brazilian Real. Sales in the region increased by 7.3% (+15.1% at constant exchange rates2), driven by Mexico as well as Chile and Colombia, where the Wholesale division opened two local subsidiaries earlier in the year. At constant exchange rates2, Brazil showed an outstanding performance growing by +14% in 2015. In Retail, the Group posted strong comps4 growth at GMO, particularly in Chile and Peru, which are the chain’s main markets, and at Sunglass Hut in Brazil and Mexico.
1, 2, 3, 4, 5, 6 For further information read the Press release