ANNUAL REPORT 2004 - Luxottica Group

LUXOTTICA GROUP IN 2004
to have direct contact with new segments of the
market, improve the quality of the services it offers and
continuously improve its efficiency in logistics.
Strong in this foundation and keenly aware of how
crucial a presence in the retail sector is in the North
American market, in 2004 Luxottica Group closed the
acquisition of Cole National, the second largest player
in the sector in the U.S., owner of retail brands such as
Pearle Vision with an important network of whollyowned
stores and in franchising, as well as the
operator of in-store optical departments Sears Optical,
Target Optical and BJ’s Optical (licensed brands).
In addition to the retail outlets, the Cole National
acquisition brought to the Group seven central labs,
which, added to the in-store labs of LensCrafters,
immediately made of the Group the operator of one of
the largest finishing lab networks in the U.S.
Finally, with the integration of Cole National’s Managed
Vision Care business into Luxottica Group’s own
EyeMed Vision Care, the Group is today the second
largest administrator of U.S. managed vision care
programs designed for corporations, government
entities and health insurance providers.
Furthermore, regarding the consolidation of its position
in the retail sector, in 2004 Luxottica Group launched a
Tender Offer for all the remaining outstanding shares of
OPSM Group (Luxottica Group had already acquired
SALES OF THE RETAIL DIVISION - 1995-2004
In millions of US$
1995
1996
1997 incl. 53rd week
1997 excl. 53rd week
1998
1999
2000
2001
2002
2003 incl. 53rd week
2003 excl. 53rd week
2004
14
First quarter
211.0
233.1
250.7
280.8
324.6
352.1
362.9
516.4
510.8
641.5
Second quarter
229.5
233.3
256.7
278.6
323.6
342.9
553.3
553.0
542.7
662.7
82.57% of that company’s outstanding shares in
2003). This transaction was successfully concluded in
March 2005.
OPSM Group holds leading positions in the optical
retail markets in Australia, New Zealand and South-
East Asia. In particular, its presence in the Hong Kong
market is expected to be an important platform for
testing product mix and services in a market similar to
that of mainland China, which shows interesting
potential for growth in the optical sector.
In 2004, the integrating of OPSM Group’s
administrative and IT systems in order to maximize the
efficiency of processes, in line with Luxottica Group’s
standards, was rigorously pursued. Among other
initiatives, all OPSM Group administrative functions
were moved to a single headquarter in Australia; in
Hong Kong, a centralized sales monitoring system
was introduced at all stores.
Finally, regarding businesses already integrated into
the Group, LensCrafters continued to reap the fruits of
its focus on service and enjoyed in 2004 tremendous
success from its product selection. Sunglass Hut, on
the other hand, brought to completion the
repositioning of its brand image launched in 2003.
This had been aimed at highlighting the focus of the
brand on fashion products, to take greater advantage
of the fashion consumer in the sun segment.
Third quarter
228.7
241.1
271.0
298.4
329.9
346.0
530.2
556.4
603.6
668.3
Fourth quarter
199.7
209.2
261.6
238.4
270.9
299.3
311.1
477.3
479.4
636.2
594.5
945.5
Full year
869.0
916.7
1,040.0
1,016.8
1,128.7
1,277.4
1,352.1
1,923.7
2,105.2
2,293.3
2,251.7
2,918.1