LensCrafters 2010 Annual Report Download - page 64

ANNUAL REPORT 2010> 62 |
Net sales of the Retail segment are also expected to enjoy strong growth (about +20 percent) in 2011 in Emerging
markets, as a result of the Sunglass Hut development plan and the excellent performance in China. After two years of
challenges, the last 15 months have shown a continuous trend of increasing sales in China, due to the efforts made by
the new management and the dynamism of the entire organization: for 2011, comparable store sales are expected to
increase significantly (+20 percent), due to the expected success of the optical and sunglass collections. The number
of Luxottica stores in China is expected to grow to 500 by 2013. Thanks to the development plans underway, the total
number of Luxottica stores in emerging markets is expected to grow from the current 6 percent of the total to 12
percent in 2012.
• The global expansion of Sunglass Hut
In 2010, Sunglass Hut recorded excellent results, with 8.4 percent growth in comparable store sales recorded worldwide
and 11.1 percent in North America, helping it to enjoy an increasing worldwide leadership position as the global sun
specialty chain.
The key factors in these results, the best in the history of the brand, were the exceptional relationships that Sunglass Hut has
successfully created with its current and potential consumers, creativity and speed in developing new initiatives focused
on these customers and an ability to tell a compelling story of the brand and products, thereby ensuring the customer an
unparalleled buying experience. This recipe for success will also be applied in 2011, a year during which Sunglass Hut is
expected to pursue a path of solid development by significantly increasing net sales, which will be accomplished in part
through small and medium investments in new opportunities worldwide, particularly in the “sun belt” countries and in the
“travel retail” and department stores businesses.
Following the recent acquisitions in Mexico, it is expected that Sunglass Hut will open its first store in Brazil during the first
half of 2011, with 15 stores expected by the end of the year. Thanks to the expansion plans in India, where Sunglass Hut
aims to have 40 stores by the end of the year, it is expected that in 2011 the number of Sunglass Hut stores worldwide will
grow by approximately 270, an increase of more than 12 percent. The number of Sunglass Hut stores is expected to reach
the 4,000 mark by 2015.
• The U.S. market
The U.S. is a key market for the Group. 2010 saw Luxottica record strong growth, thanks above all to LensCrafters, which,
with its best results since 2006, further strengthened its leadership position in optical retail in North America, to the
excellent performance of Sunglass Hut and to the positive trend of the Wholesale segment.
In 2011, LensCrafters looks to benefit from the innovations that the Group is introducing both in terms of products and
services. A major focus will be on laboratories, which today are technologically cutting edge in lens manufacturing and
finishing and are able to offer an excellent level of service. The results of the first two months of 2011 confirm the validity
of the initiatives implemented during the last few quarters and the targets for 2011.
Net sales for the Retail segment in North America are expected to grow by 4–7 percent.
Thanks to a renewed attention to customers and greater synergies between Group activities, the Wholesale segment is
expected to achieve double–digit growth in net sales in 2011 in the North American market.
• Oakley
After the fifth consecutive year of double–digit growth, during which the net sales of the brand exceeded the threshold
of US$ 1.1 billion, in 2011 Oakley will continue to play a key role in Luxottica’s development, thanks to the opportunities
available for this brand, with net sales expected to grow by more than 10 percent.