Luxottica Group reported growth accelerated at its premium sunglass businesses in North America in the second quarter.


 

The ongoing success of Oakley and Ray-Ban in all markets and solid results in the premium and luxury segment drove Luxottica’s overall global results in the quarter in terms of both net sales and profitability.

 

Ray-Ban and Oakley drove a 9.9 percent increase in Wholesale revenues in North America and a 10.3 percent increase in currency-neutral (c-n) terms worldwide on top of 10.3 percent c-n growth in the second quarter of 2013. LUX CEO Andrea Guerra said Ray-Ban remains the “category captain” in China, followed closely by Vogue and Oakley. Luxury brands such Burberry, Prada, Tiffany and Dolce also continue to perform well in the world’s most populous country.

 

The brands also helped Sunglass Hut grow sales 8.5 percent in North America despite weak mall traffic. CEO Andrea Guerra estimated growth in unit sales accounted for about 65-70 percent of the growth in the United States, with the remaining growth coming from a more favorable mix of brands and polarized sunglasses. In addition to Ray-Ban and Oakley, the global retail chain sells third-party sports brands such as Revo, Smith Optics and Spy.

 

Sunglass Hut’s comparable store sales grew 9.9 percent globally thanks to “excellent” results in Iberia, South Africa and Latin America and “robust” growth in North America.

 

The strength of the euro against the U.S., Australian, Brazilian and Chinese currencies trimmed LUX’s global revenue growth and operating margins by 490 and 50 basis points respectively during the first two quarters, but LUX CFO Enrico Cavatorta said that if rates were to remain where they are now, the negative impact of exchange rates would to diminish to 100 and 0-10 bps in the back half.