LensCrafters 2008 Annual Report Download - page 42

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> 40 |ANNUAL REPORT 2008
The operating income for the retail distribution segment in 2008 was Euro 291.5 million, down 19.4% from
Euro 361.8 million in 2007. The pro forma(1) operating margin dropped to 9.4% in 2008 from 11.1% in 2007.
The expansion of the retail distribution segment proceeded without interruption, especially in terms of
opportunities in emerging markets. The Sunglass Hut brand began operations in 2008 in Thailand and India
under two franchising agreements with high profile local partners. In Thailand, the Group plans to launch
its initial operations in this important tourist destination by opening 15 new retail locations with Diethelm
Keller Limited. In India, it is planning to have 100 retail locations, at full capacity to be operated under
franchise by DLF, and these, like the new Sunglass Huts in Thailand, will be added to the 216 retail locations
already operating in the Asia-Pacific region (which includes Australia, New Zealand, Hong Kong and
Singapore).
In the meantime, retail presence in Europe was given new impetus by the full consolidation of David Clulow,
the highly successful UK chain operating in both the sun and optical businesses. In North America, where
the BJ’s Optical store contract expired in March 2008 and was not renewed, the retail division initiated
rationalization and refocusing programs.
(1) Pro forma data reflects the inclusion of results by Oakley, Inc., a subsidiary that was acquired in November 2007, as if it had been acquired on
January 1, 2007.