MILAN — Italy's Luxottica Group reported a healthy increase in net profits for 2016, following a year of record sales, and upped its full-year dividend.In the 12 months ending Dec. 31, Luxottica said net profits increased 5.8 percent to 851 million euros, or $902.1 million, with a net margin of 9.4 percent; at constant exchange rates, the increase in income would have been 7.6 percent. The company raised the full-year dividend by 3.4 percent, to 0.92 euros, or 98 cents, a share.Luxottica released the results following the close of trading Wednesday evening in Milan, where it is listed. The company said it expected 2017 to be "another year of growth and important investments for the group" and forecast that sales and profits would grow by low- to midsingle-digits.Looking again at the 2016 results, the company said that adjusted net profits increased 3.3 percent at current exchange to 882 million euros, or $934.9 million, with a net margin of 9.7 percent. At constant exchange, the increase was 5 percent.The adjusted figures include restructuring and reorganization costs over the year equivalent to some 69.5 million euros, or $73.7 million, and non-recurring expenses of 17.4 million euros, or $18.4 million, associated with the departure of former chief executive for markets Adil Mehboob-Khan, the company said.Operating income for the full year decreased by 2.3 percent, to 1.35 billion euros, or $1.43 billion, following incremental investments over the year, the company said. The adjusted operating margin decreased about 20 basis points from 2015, reaching 15.8 percent of sales, dragged down in particular by the retail channel, where it dropped 100 basis points, to 13.7 percent, "mainly due to investments in digitization and retail expansion," Luxottica reported. The wholesale operating margin, on the other hand, remained essentially stable, at 24.1 percent of sales, as the division was "beginning to benefit from the synergies of the Oakley integration and the organization's efficiency."Revenues for the full year, which the company had already reported on Jan. 30, increased 2.8 percent, to 9.08 billion euros, or $9.88 billion, boosted by gains in the retail channel and e-commerce. At constant exchange rates, sales would have increased by 3.9 percent in the full year.Overall, retail sales increased 3.4 percent, at constant currencies, thanks also to strong growth at Sunglass Hut in the sun segment and slight expansion in revenues at LensCrafters in North America. Wholesale revenues decreased in the full year, by 1.8 percent. The company said this was mainly due to the implementation of its "minimum advertised price" policy, which aims to "improve the quality of sales and protect the equity of its brands and the business of wholesale customers" through initiatives including harmonizing prices across different markets and reducing in-store and online promotions "sharply."In the fourth quarter, revenues accelerated, up 6.3 percent, showing particular improvement in North America. Leonardo Del Vecchio, the company's founder and executive chairman, said this acceleration was particularly due to "the courageous decisions taken in the last two years, and all investments aimed to make our product and service offering more innovative and compelling."In addition to own brands like Ray Ban and Oakley, Luxottica produces under license for Giorgio Armani, Chanel, Prada and Versace, among others.The company will hold a conference call about the results on Thursday morning, when analysts will likely seek out more details about the merger with French lens maker Essilor, revealed earlier in January. In its statement Wednesday evening, Del Vecchio was bullish on the eyewear giant's prospects for the current year — with or without Essilor: "Regardless of our combination with Essilor, we can confirm that 2017 will be a year of further growth for the group."
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion
@longchamp, which marks its 70th anniversary this year, just opened its biggest U.S. store on Manhattan’s Fifth Avenue. On the lower level there’s a floor-to-ceiling display of the brand’s iconic Le Pliage bag – in all of its different colors, shapes and sizes. Customers can also have their product personalized in-store by imprinting names, initials or emblems. #wwdfashion (📷: @ericmtownsend)
“Whenever I’m in that place of sound and music, I don’t have fear or nervousness…This album has a lot of themes of courage and boldness and I want to be the soundtrack for people’s lives. I’ll be so happy if [my songs] evoke strength in people, which I know music has done for me,” says @kimbramusic of her newest album “Primal Heart.” The New Zealand-born singer sat down with WWD to talk about her music, newest tour and connecting with hear fans — read more on WWD.com #wwdeye (📷: @jilliansollazzo)
Luxury handbag resale company @rebagofficial is planning to sell a rare collectible for $70,000: the @hermes White Crocodile Himalayan Birkin. The exclusive Birkin sold for about $100,000 in 2008, when @davidbeckham bought one for his wife @victoriabeckham to add to her collection. Read more about the rare Birkin on WWD.com #wwdaccessories
With her costume pearl necklace and what-you-see-is-what-you-get style, Barbara Bush, who died Tuesday at age 92, was a straight-shooter from start to finish.
Born Barbara Pierce in New York City, Bush served as the 37th first lady, as well as the country’s second lady from 1981 to 1989. In addition to being part of the longest presidential marriage — 73 years — Bush also had the unlikely distinction of having one son, George W., become the 43rd president and another son, Jeb, run unsuccessfully in 2016. Having served as second lady during the Reagan administration’s two terms and lived all over the world during her own husband’s ascending political career, Barbara Bush made it clear that literacy — not fashion — was her priority. Read more from Rosemary Feitelberg’s obituary on the late First Lady in WWD.com, link in bio. #barbarabush #wwdnews
Western and ’90s trends have influenced denim for fall 2018. Think raw, dark and coated jeans mixed with bold prints and tough leather. #trendtuesdays #wwdfashion (Styled by @thealexbadia;📷: @ryanplett)