LensCrafters 2006 Annual Report Download - page 7

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|7<
To our shareholders,
2006 was a record year for Luxottica Group.
Excellent results in all key markets contributed to exceptional growth of 30% in the wholesale
division. We are also very proud of our retail results, especially in North America, where sales rose
nearly 8%. In 2006, consolidated net income increased 30%, which is more than twice the increase
in consolidated sales.
During the course of the year,we continued to build upon the significant strengthening of our
brand portfolio achieved in 2005. With record results by Ray-Ban, new license agreements with
global brands Polo Ralph Lauren and Tiffany & Co., and a strong launch of the Burberry line, today
the Group has a brand portfolio whose breadth and balance are matched only by the prestige of its
brands.
On the retail front, we moved ahead with our investment plan to further improve our store
network and better position Luxottica Group to take advantage of new growth opportunities. These
investments will continue in 2007. We launched the LensCrafters brand in China with the opening of
its first flagship store in Beijing and positioned it in this important market as the standard for premier
eyecare and a trendsetter for luxury eyewear.
2007 will be another important year for our growth and for the history of the Group. Two of our
main brands will celebrate important anniversaries: Persol, the worldwide emblem of «Made in Italy»
eyewear and a brand synonymous with elegance, comfort and quality, will turn 90; and Ray-Ban, the
world’s best-known and best-selling eyewear brand, will turn 70. These two great brands share a
history of quality, excellence and success. Above all, both brands are posting strong contributions
to our results and leading the path to future growth.
Weare a leader in a fast-growing market that is generating new and increasing opportunities
for continued strong growth. Eyewear is a key fashion and luxury accessory and has become a
growing reflection of an individual’s personality.Markets that were only prospects for growth a few
years ago are already vibrant and growing. In the more established markets in the West, a major
opportunity for growth is tapping into the aging population, particularly Baby Boomers, who
demonstrate a propensity to take care of themselves and to frequently indulge in fashion and luxury
products.
In 2006, we continued to invest time and resources in making our management structure
stronger and more globally integrated. We are in the right place at the right time. We are determined
to pursue growth opportunities wherever they arise, to push the confines of our market ever outward
and to take even better care of our customers.
This is why we expect 2007 to be another important year for Luxottica Group - in fact, another
record year.
May 2007
CHAIRMAN’S
LETTER
TO SHAREHOLDERS
Chairman