Executive Summary

• Luxottica reported adjusted 1H16 EPS of US$1.23, an increase of 1% year over year and above the consensus estimate of US$1.17. The company reported adjusted revenue declined by 0.7% to €4.7 billion (+1.6% at constant currency), below consensus of €4.8 billion.
• Adjusted EBIT declined by 2.5%, to €857 billion, above the consensus estimate of €853.2 million, while net income increased by 1.3%, to €532 million, above consensus of €511.5 million.
• Luxottica lowered FY16 guidance from its previously estimated revenue range of 5%–6% and now expects to generate 2%–3% revenue growth at constant exchange rates. The company expects to grow FY16 operating and net income in line with sales, also down from its previous range of operating and net income at a multiple of 1.5x sales.