LensCrafters 2011 Annual Report Download - page 93

| 17 >MANAGEMENT REPORT
between the Euro, which is our reporting currency, and other currencies in which we
conduct business, in particular the strengthening of the US Dollar and the Australian
Dollar compared to the Euro, increased net sales in the retail distribution segment by
Euro 14.3 million.
Net sales to third parties in the manufacturing and wholesale distribution segment
increased by Euro 42.7 million, or 8.3 percent, to Euro 556.2 million during the three-
month period ended December 31, 2011, from Euro 513.5 million in the same period in
2010. This increase was mainly attributable to increased sales of most of our house brands,
in particular Ray-Ban, Oakley and Persol, and of some designer brands such as Tiffany,
Burberry and MiuMiu. These sales volume increases occurred in most of the geographic
markets in which the Group operates. These positive effects were partially impacted by
negative currency fluctuations, in particular a weakness of Brazilian Real and Turkish Lira,
despite a strengthening of the US Dollar and Australian Dollar compared to the Euro,
which decreased net sales to third parties in the manufacturing and wholesale distribution
segment by Euro 2.0 million.
During the three-month period ended December 31, 2011, net sales in the retail distribution
segment accounted for approximately 63.1 percent of total net sales as compared to
approximately 61.9 percent of total net sales for the same period in 2010. This increase
in sales for the retail distribution segment as a percentage of total net sales in the three-
month period ended December 31, 2011 was primarily attributable to a 14.4 percent
increase in net sales in the retail distribution segment as compared to the same period
of 2010, which exceeded an increase of 8.3 percent in our manufacturing and wholesale
distribution segment as compared to the same period of 2010.
During the three-month period ended December 31, 2011, net sales in our retail distribution
segment in the United States and Canada comprised 76.6 percent of our total net sales in
this segment as compared to 80.3 percent of our total net sales in the same period of 2010.
In US Dollars, retail net sales in the United States and Canada increased by 7.7 percent
to US$ 983.2 million during the three-month period ended December 31, 2011, from
US$912.7 million for the same period in 2010, due to sales volume increases. During the
three-month period ended December 31, 2011, net sales in the retail distribution segment
in the rest of the world (excluding the United States and Canada) comprised 23.3 percent
of our total net sales in the retail distribution segment and increased by 36.0 percent
to Euro 222.8 million during the three-month period ended December 31, 2011, from
Euro 163.7 million, or 19.7 percent, for the same period in 2010, mainly due to an increase
in consumer demand.
During the three-month period ended December 31, 2011, net sales to third parties in
our manufacturing and wholesale distribution segment in Europe were Euro 227.9 million,
comprising 41.0 percent of our total net sales in this segment, compared to Euro 221.7
million, or 43.2 percent of total net sales in the segment, in the same period in 2010.
The increase in net sales in Europe of Euro 6.2 million, or 2.8 percent, during the three-
month period ended December 31, 2011, compared to the same period of 2010, was
primarily due to a general increase in consumer demand. Net sales to third parties in our
manufacturing and wholesale distribution segment in the United States and Canada were
US$ 183.2 million and comprised 24.5 percent of our total net sales in this segment during