LensCrafters 2011 Annual Report Download - page 105

| 29 >MANAGEMENT REPORT
29, 2009 (“2009 Program”), with the purpose of ensuring efficient management of capital
and of executing the “Performance Shares Plan”. Under the 2008 Program, completed
on November 13, 2009, the Company purchased a total of 1,325,916 shares on the
Milan Stock Exchange’s Mercato Telematico Azionario (MTA) at an average unit price of
Euro 17.13 for an aggregate amount of Euro 22,714,251.
Under the 2009 Program, started on November 16, 2009, the Company purchased in
the period up to December 31, 2010 a total of 4,710,454 shares (of which 1,352,154 were
purchased in 2009) on the MTA at an average unit price of Euro 19.07 for an aggregate
amount of Euro 89,816,864.
In parallel, as of December 31, 2010 the US subsidiary Arnette Optic Illusions, Inc. sold a
total of 6,434,786 treasury shares on the MTA at an average unit price of Euro 18.88 for an
aggregate amount of Euro 121,506,814.
Under the same 2009 Program, the Company purchased in 2011 on the Milan Stock
Exchange’s Mercato Telematico Azionario (MTA) an aggregate amount of 466,204 shares
at an average price of Euro 22.45 for an aggregate amount of Euro 10,467,358.89. This
stock purchase program expired on April 28, 2011.
Our related party transactions are neither atypical nor unusual and occur in the ordinary
course of our business. Management believes that these transactions are fair to the
Company. For further details regarding the related party transactions, please refer to note
28 to the Consolidated Financial Statements as of December 31, 2011.
Future operating results and financial condition of the Group may be affected by various
factors, including those set forth below.
RISKS RELATING TO OUR INDUSTRY AND GENERAL ECONOMIC CONDITIONS
a) If current economic conditions continue to deteriorate, demand for products of the
Group will be adversely impacted, access to credit will be reduced and customers and
others with which the Group does business will suffer financial hardship, all of which
could reduce sales and in turn adversely impact its business, results of operations,
financial condition and cash flows
Operations and performance of the Group depend significantly on worldwide economic
conditions. Uncertainty about current global economic conditions poses a risk to its business
because consumers and businesses may continue to postpone spending in response to
tighter credit markets, unemployment, negative financial news and/or declines in income
or asset values, which could have a material adverse effect on demand for its products and
services. Discretionary spending is affected by many factors, including general business
conditions, inflation, interest rates, consumer debt levels, unemployment rates, availability
of consumer credit, conditions in the real estate and mortgage markets, currency exchange
9. RELATED PARTY
TRANSACTIONS
10. PRINCIPAL
RISKS AND
UNCERTAINTIES TO
WHICH THE GROUP
IS EXPOSED