Luxottica Group delivered record sales and profits in the year ended 31 December, with travel retail making a strong contribution.
The Travel Retail division reported a +25.3% surge in net sales (at constant exchange rates) compared to the prior year.
Net sales for the group grew by +7.5% at constant exchange rates (+3.2% at current exchange rates) to €7.3 billion.
Emerging markets aided this growth, increasing by over +20% at constant exchange rates, with “peaks of excellence” in China, Brazil and Turkey. Total sales in North America increased by +3.5% in US Dollars, driven in particular by the Wholesale Division. Luxottica also reported what it termed “an almost surprising” increase in net sales in Europe of +11% at constant exchange rates compared to the full year 2012.
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The Retail Division reported net sales of €4,321 million, which were on par with the full year 2012 (up +4.7% at constant exchange rates). In particular, Sunglass Hut reported an increase of +11.2% in total net sales over 2012, at constant exchange rates.
The Wholesale Division posted a sales increase of +12.0% at constant exchange rates (up +7.9% at current exchange rates) compared to 2012.
Adjusted net income for the year amounted to €617 million, up +10.3% year-on-year.
In the fourth quarter of 2013, net sales amounted to €1.6 billion, up +7.6% at constant exchange rates and +0.8% at current exchange rates, compared to the same period in 2012.
Luxottica’s quarterly results reported at current exchange rates continued to be affected by the weakening of certain currencies against the Euro, the company noted.
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Regular high-profile travel retail activations (this one at Montevideo Carrasco) helped to boost the performance of Luxottica Group Travel Retail in 2013 |
Chief Executive Officer Andrea Guerra said: “We have completed another record year, achieving the best results ever for the group.
“We believe that 2014 will be a natural evolution of the year that has just ended. The early months are delivering positive results despite some bad weather and we believe they will set the stage for sales growth and profitability consistent with prior years.
“We have clearly identified our growth roadmap and its drivers. Our brand portfolio is increasingly strong, with Ray-Ban continuing to be a global leader in its category and Oakley reporting excellent results in Europe and emerging markets.
“Both the Wholesale and Retail Divisions continue to grow in the premium sunglass segment in North America. Sunglass Hut continues its expansion globally and in new channels, strengthening its role of sunglass category captain. We continue to invest in the optical segment, which affords us solid growth in developed markets and progressive penetration in emerging markets.”
“We think that developed markets will continue to contribute positively to group sales and profitability and expect even stronger growth in emerging markets, where we are continuing to invest. Our goal is to enhance our local presence in Brazil, China, India, Mexico and Turkey.”
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