Luxottica reveals plans for new service model

Early details of the plans to create an integrated logistics and production hub between lenses and frames were announced as part of Luxottica’s third quarter (Q3) financial results, released on 24 October.The company recently opened a laboratory in Sedico, Italy to produce ophthalmic lenses for the European market and it was said that by early 2017, two more central labs would be established to serve the Asia-Pacific and North America regions.The new sites – the exact locations of which were not disclosed – will produce ophthalmic lenses specially adapted to fit each frame manufactured by the international eyewear company. Luxottica will offer eye-care providers a new service model, unparalleled in the market, integrating lenses and frames while also leveraging the efficiency of the group’s global distribution network, the financial report stated.Sales across the Asia-Pacific region reached euro 283 million (AU$404 m) in the three months ended 30 Septber 2016. This was an increase of 4.5% at current exchange rates compared with the previous corresponding period.The financial report noted that in Australia, OPSM continues to generate growing comparable store sales due to the assortment changes and distribution policies implented in the first half of the year .Globally, reported net sales increased 3.2% to euro 2.2 billion (AU$3.1 b) in Q3 2016. This was attributed to solid results in Europe and erging markets, an overall acceleration of retail, and an extended summer season, which benefitted sales of the group’s new collections.{{image3-a:r-w:300}}In a joint statent, executive chairman Mr Leonardo Del Vecchio and CEO for product and operations Mr Massimo Vian said they were pleased with the quality of our growth in the quarter and the vitality of our business in markets such as Europe, Latin America and Southeast Asia . We managed to achieve these results during a period of major investment, integration and organisational simplification of the group, and an uncertain macroeconomic setting, they commented in the statent.The statent went on to note the increase in retail sales more than offset a reduction in wholesale volumes, which were affected by the decision to reduce sales to online operators in North America and withdraw goods from Chinese independent distributors who were not aligned with the group’s new distribution strategies. By year’s end we will have substantially completed the integration of our businesses and we are already seeing the results of the various initiatives undertaken over the last 12 months, Mr Vecchio and Mr Vian said. We therefore believe we can accelerate the growth of the group starting in 2017, and keep it healthy and sustainable in the long run.