LensCrafters 2009 Annual Report Download - page 44

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OUTLOOK
OUTLOOK FOR 2010
Based on current market conditions, the results achieved in 2009 and the strength of Luxottica’s business
model put the Group in an ideal position to have a "normal" year in 2010, which, for Luxottica, would result
in mid-single-digit revenue growth, a more than proportionate increase in margins and a further reduction
in the ratio of net debt to EBITDA.
2010 is expected to be a positive year for Europe, the United States and especially emerging countries.
Furthermore, the steps that have been taken are expected to lead to a strong increase in profi tability for both
divisions, particularly the wholesale division. Strong attention will also be focused on development opportu-
nities and on investments in systems and infrastructures expected to generate further benefi ts.
ACTIONS FOR 2010
The four cornerstones upon which the Group will build in 2010 to achieve these goals are: Oakley’s growth
potential, further expansion in emerging markets, growth in the US market and fl exibility, with steady focus
on the strength of the balance sheet and cash fl ow generation.
Oakley’s growth potential
In the past few years, as the world experienced a period of structural realignment, Oakley showed that
it truly is an extraordinary brand, achieving double-digit growth in 2008 and, more remarkably, in 2009.
Oakley’s opportunities are still signifi cant: in 2010, following a period of intense activity devoted to improv-
ing distribution in Europe and emerging markets, the Group will substantially increase its investments in
support of this brand.
Another extremely important factor will be the ability to leverage Oakley’s unique and distinctive position
in the "optical prescription" business, with additional investments in marketing programs, design and
technology.
Oakley is a brand that is expected to provide a fundamental contribution to Luxottica’s sustainable growth
over the long term.
Further expansion in emerging markets
In 2010, Luxottica expects to continue on the growth track that it has been experiencing in emerging
markets. Currently, these markets account for about 15% of sales of the Wholesale division and about 7% of
the Group’s consolidated sales, practically double that of only fi ve years ago. The Group intends to achieve
signifi cant growth in Asia and Latin America, specifi cally focusing on Brazil, China and India. With this in
mind, in 2010 it will launch specially designed Ray-Ban collections and special projects for these countries,
with the objective of stimulating demand and increasing the penetration of Luxottica’s brands. Other ac-
tions planned for the current year include completing Oakley’s integration in Brazil and South Africa and
launching the STARS project in Latin America, India and Eastern Europe.
In addition, the Group will continue to make small and medium-size investments in these markets, as it
seeks new opportunities in these regions for the Retail division, for Sunglass Hut in particular.
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