LensCrafters 2006 Annual Report Download - page 21

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|21 <
The results for 2006 reflect excellent performance in both the retail and wholesale divisions. The
wholesale division in particular saw record growth, with sales improving 30.9% to more than
Euro 1.7 billion. This strong performance was due mainly to the continued strengthening of the
brand portfolio over recent years. The retail division also reported good results, especially in North
America, where sales rose nearly 8%, confirming the current strength of the business and its
potential for the future.
Ray-Ban, the world’s most recognized and best-selling eyewear brand, posted sales of Euro 1.4
billion (at retail value) thanks to double-digit growth for the fourth straight year, an industry record.
The Group’s luxury brands, including Bvlgari, Chanel, Dolce & Gabbana, Prada and Versace, also
enjoyed vigorous growth of 40%. Geographically, Luxottica Group continued to grow in its main
markets. Wholesale sales to third parties in emerging markets grew 60%, indicating the strength of
this area for future expansion.
In 2006, Luxottica Group’s consolidated sales reached Euro 4.7 billion, up 13.1% from the previous
year. Operating results improved overall and in both the retail and wholesale divisions. In terms of
profitability, the wholesale division’s margins increased. For 2006, consolidated net income totaled
Euro 424.3 million, up 24.0% from 2005. Strong cash flow generation was once again a highlight of
the Group’s results, reaching Euro 391.0 million for 2006 before dividends, acquisitions and the
effects of exchange rates. The Group’s net consolidated indebtedness at the end of 2006 was
Euro 1,148.5 million, a decrease of Euro 288.9 million from the previous year-end.
LUXOTTICA
GROUP
IN 2006