LensCrafters 2007 Annual Report Download - page 8

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|7<
Shareholders,
2007 was another year of great satisfaction for our Group, a year in which we were focussed
on implementation of our plans on all fronts.
Growth was achieved across the board: results were positive and our market leadership
position was further strengthened over the year. Sales topped the five billion Euro mark and we
embarked on a new mission with Oakley whilst maintaining excellent levels of profitability at the
same time.
Our strategy continued to prove successful, being based on our unique model of integration
between production and distribution and direct presence in all the world’s markets, factors which
have enabled us to continue building on our well balanced brand portfolio.
2007 was also a year of major investments on both the wholesale and retail fronts. On one
hand, we immediately started to integrate with Oakley, so as to see the first results come through
in 1st quarter 2008; and on the other, we managed to renew nearly a quarter of our points of sale.
We see the growth in our retail business over the year as very positive also in view of the global
economic situation, which gradually worsened due to the contraction in consumer demand in
North America and the persistent weakening of the Dollar against the Euro.
Wholesale too continued to grow in 2007, thus endorsing our business model in all major
markets and demonstrating the consolidated force of our brand portfolio. The year also saw two
splendid debuts: the launch of our first Polo Ralph Lauren collection and Tiffany’s first ever
appearance on the eyewear market.
We celebrated our first ten years in China, where we started up with the Tristar plant and now
have new offices in Shanghai, Beijing and Hong Kong, and around 300 stores, a retail platform we
intend to expand in the near future. Like China, all our emerging markets also saw considerable
growth, allowing us to predict strong development also in regions whose economies are evolving
rapidly and are less dependent on the US Dollar.
Our managerial organization reached new levels of maturity, as it continued to take up business
opportunities wherever they occurred and to react rapidly and effectively to every new scenario.
All this is obviously a source of great satisfaction, also in terms of our excellent prospects for
growth in 2008.
May 2007
CHAIRMAN’S
LETTER
TO SHAREHOLDERS
Chairman