LensCrafters 2007 Annual Report Download - page 40

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sale and Pearle Vision stores. LensCrafters in-store labs can prepare glasses chosen by the
customer in as little as an hour.
MANAGED VISION CARE - EYEMED VISION CARE
EyeMed Vision Care is the second biggest managed vision care operator in the United States.
With a strong surge of new clients in 2007, the renewal of important agreements and the
contribution of Cole Managed Vision contracts, it now serves over 23 million subscribers in large
and medium size companies, public administrations and insurance programs and has a network
of over 17,000 points of sale including opticians, ophthalmologists, optometrists and stores in
chains operated by Luxottica Group.
EyeMed Vision Care is also a recognized leader in terms of quality, choice, value for money and
service excellence - all priority concerns for managers shopping for vision care programs,
especially for large groups.
Clients using such services enjoy a vast choice amongst the numerous stores in the Group’s
chains and independent optical retailer network.
WHOLESALE
In 2007, the wholesale division’s sales, excluding Oakley, reached Euro 1,993 million, up 16.2%
from 2006. At constant exchange rates, growth would have been 20.2%, due to excellent work on
the brand portfolio. Operating income from wholesale business rose 18.4% from the previous year
to reach Euro 528 million, with a ratio to sales of 26.5% (26.0% in 2006). Sales to third party clients
grew 21.7% on constant exchange rate basis. Sales by the wholesale business in emerging
markets rose 41.6%, indicating a key area for futuregrowth.
Geographically, the wholesale business continued to grow at above market average rates in most
countries where the Group operates. In Europe, which is the most important market for this
division, Luxottica Group continued to gain ground in every country.
It saw significant growth in the United States thanks to both restructuring efforts and the growing
trend towards fashion eyewear, especially in the sun segment.
In Asia, growth was constant and substantial, confirming the Group’s leading position in Japan,
Korea and Hong Kong.
In emerging markets, wholesale sales rose 41.6% indicating another area for future expansion.
Strong growth was primarily due to the fashion and luxury brands, particularly in the sun segment,
in line with emerging markets’ growing demand for luxury products, as well as to marketing
efforts. Overall, Luxottica Group’s wholesale division retained its leading position in the premium
and luxury segments in 2007, thanks to one of the strongest and most balanced brand portfolios
in the industry.
Both house and licensed brands posted excellent results. Total sales by Ray-Ban, the world’s best
known eyewear brand, were double digits up for the fifth consecutive year of increased sales.
Positive results were recorded by the other house brands as well, especially Vogue, Arnette, Persol
and Revo, which all achieved their growth targets.
The Group’s luxury brands grew as well. The first Burberry collections, launched in September