LensCrafters 2011 Annual Report Download - page 115

| 39 >MANAGEMENT REPORT
especially significant results in the following regions strategically important to the
Group:
• in the emerging markets, Luxottica estimates for 2012 a Wholesale Division net sales
increase between 25 percent and 30 percent, and a comparable store sale increase for
the Retail Division between 17 percent and 22 percent;
• in North America, comparable store sales of the Retail Division are expected to grow
between 5 percent and 7 percent in 2012, and net sales of the Wholesale Division by
more than 15 percent; and
• in Western Europe, Group’s net sales are expected to increase between 4 percent and
6 percent in 2012.
Emerging markets are expected to represent a formidable driving force for both Luxottica
Divisions during 2012. Emerging market countries in which Luxottica presently operates
currently represent about 22 percent of net sales for the Wholesale Division and recorded
about 20 percent growth in 2011. Luxottica also forecasts that in 2012 the Group will
continue this development trend as a result of the investments it has made in this area
of its business including the recently completed acquisition of Tecnol, a leading eyewear
operator in Brazil. Largely as a result of the actions taken to date, Luxottica expects that
net sales in emerging markets could represent approximately 30 percent of the Wholesale
Division’s net sales in 2015. The Wholesale Division’s global presence will drive Luxottica’s
ability to exploit the best opportunities wherever they appear.
Additionally, Luxottica’s plans for growth in the emerging markets are based on the
continued roll-out of Sunglass Hut stores in this area, performance of the newly acquired
GMO chain (since 2011) in Latin America and continued excellent results from China. In
particular, Latin America represents an area with significant potential, where the Group
can benefit from the synergies that are expected to occur between Tecnol and GMO.
Following the excellent results achieved in North America over the past two years, Luxottica
aims to continue the balanced growth of both Divisions in this particularly strategic region
for the Group.
During 2012, LensCrafters will further strengthen its role as a point of reference in the
North American eyewear market. The innovative technologies introduced by the Group,
such as the digital vision measurement system Accufit, will allow LensCrafters to provide
enhanced levels of accuracy and precision and further improve the quality of service
delivered to customers.
The Wholesale Division expects continued growth in sales of premium and luxury brands
and this, coupled with the consistently outstanding services offered, will allow the Wholesale
Division to further establish itself in the North American market. Adding to the Wholesale
Division’s expected success in 2012 is the highly successful launch of the first Coach eyewear
collections, which has delivered extremely positive results during the first two months of 2012.
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Over the next few years, approximately 2 billion new consumers will enter the market,
bringing with them a broader range of great opportunities for Luxottica, but, at the same