March 1, 2017 -- Luxottica Group’s 2016 year-end financial statement reports consolidated sales of almost $9.5 billion (more than 9 billion euro). According to the statement, The Group reached a record high for its net profit of Euro 851 million ($897 million) on a reported basis and Euro 882 million ($930 million) on an adjusted basis.
The Group reported “accelerated growth” in the final quarter of 2016, compared to the first nine months of the year, which contributed greatly to its year-end numbers.
Seeds of Growth
According to the Group, over the past year it initiated a phase of “profound change” to strengthen its vertically integrated business model and foster organizational simplification, speed up decision making, and execution of strategies and improve efficiency and integration of the various business areas.
Among those changes was the integration of Oakley's sports channel. Others included introducing the Miniumum Advertised Price policy in North America, cleaning the distribution channels in Mainland China, harmonizing its prices across different markets and reducing in-store and online promotions
sharply. Also, the Group strengthened its business operations around the world with the creation of three new logistics-production hubs that integrate the production and distribution of lenses and frames in Italy, the United States, and
China, and it continues to evolve the omnichannel experience of its retail network and strengthen its digital marketing and e-commerce platforms.
"Today Luxottica is looking at the future with enthusiasm for the opportunities to be seized, with the confidence that comes from being a stronger and more efficient Group, and with a faster decision-making process,” Leonardo Del Vecchio, executive chairman, and Massimo Vian, CEO for Products and Operations of Luxottica, said in the statement.
“We have clear strategies and strong brands. We know our consumers around the world and why they choose us. And now we are preparing to offer them a superior eyewear experience, resulting from the integrated design and production of frames and lenses at the source. Regardless of the combination with Essilor, we can confirm that 2017 will be a year of further growth for the Group."
Mergers & Acquisitions
The acquisition of Salmoiraghi & Viganò, a leading optical retail brand in Italy, marked the end of 2016, while in January 2017 Delfin, the Group's majority shareholder, and Essilor announced the signing of an agreement to create an integrated player in the eyewear industry.
The transaction is subject to several conditions precedent, including approval by the shareholders of Essilor as well as regulatory approvals from various antitrust authorities.
To see the full financial report, click here.