LensCrafters 2009 Annual Report Download - page 43

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FINANCIAL OVERVIEW | 41 <
RETAIL
For the full year, retail sales were Euro 3,139.0 million, up by 1.0% at current exchange rates and down by
3.0% at constant exchange rates (1). Particularly during the fourth quarter, the Retail division showed signs
of recovery, responding in large part to the effi ciency actions put in place over 2009, although in North
America the division is still experiencing a contraction in traffi c. Targeted, high-opportunity retail outlet
expansion continued in both developed and emerging markets.
A CONTINUED FOCUS ON GROWTH
Luxottica worked to achieve external growth both in the developing and developed markets. It started
by acquiring a 40% stake of Multiopticas, a company which owns more than 390 eyewear stores in Chile,
Perù, Ecuador and Colombia. Sunglass Hut reinforced its worldwide presence by setting up special store
concepts in all 65 locations within the Australian Myer department store chain (30 already by November
2009). Next, the Group expanded further in the Asia-Pacifi c region by rolling out an initial 24 Sunglass Hut
stores within the Edgars department store network in South Africa by the end of 2009, and then through
a franchising agreement to open Sunglass Hut retail outlets in the Philippines beginning in 2010. In De-
cember 2009, the Group announced an agreement to open additional in-store Sunglass Hut locations in
approximately 430 Macy’s department stores across the US, to add to the 240 Sunglass Hut departments
already operating in Macy’s stores. The new locations, which will operate as leased departments, will begin
rolling out in Spring 2010, scheduled for completion in Spring 2011.
(1) Operating measures that assume constant exchange rates between the fourth quarter of 2009 and the fourth quarter of 2008 and between fi scal year 2009 and
fi scal year 2008 are calculated using the average exchange rates for the respective 3 and 12 month periods ended December 31, 2008, which were € 1=US$
1.3180 and € 1=US$ 1.4707, respectively.
(2) EBITDA, free cash fl ow, net debt and the ratio of net debt to EBITDA are non-US GAAP measures. For additional disclosure regarding non-US GAAP measures
and a reconciliation to US GAAP measures, see Appendix.