Luxottica Group to terminate the employment and administration relationship with Massimo Vian

Milan, Italy, 2017-Dec-19 — /EPR Retail News/ — Luxottica Group S.p.A. (MTA: LUX) announced today that an agreement to terminate the employment and administration relationship between Massimo Vian and the Company, was approved by the Board of Directors in a meeting held today after carrying out an appropriate review and assessment. The Board resolved that, as part of the abovementioned agreement, Massimo Vian is to be paid a gross total amount of Euro 6,300,000 in addition to severance pay which is linked to the consensual termination of the employment relationship effective December 31, 2017 and the administration relationship which has been terminated and is immediately effective.

The abovementioned amount has been determined as follows:

  • Euro 3,000,000 as a redundancy incentive in accordance with the obligations established pursuant to the agreement between Massimo Vian and the Company in December 2014;
  • Euro 500,000 as remuneration for non-solicitation and non-competition obligations, according to the provisions of the abovementioned agreement;
  • Euro 1,300,000 as consideration for the ordinary grant under the 2015 Performance Shares Plan, which vested but was not assigned;
  • Euro 1,300,000 as remuneration for the renunciation of all rights granted to Massimo Vian under the Company’s long-term incentive plans;
  • Euro 200,000 as compensation for a settlement and novation agreement.

This conclusion was reached in compliance and under the terms of the Remuneration Policy, published by the Company, and in accordance with the obligations established pursuant to the agreement between Massimo Vian and the Company in December 2014, when his pre-existing employment relationship was superseded and novated.

The amount determined as part of the settlement and novation agreement shall be paid in consideration of Massimo Vian waiving, towards Luxottica Group S.p.A and every other entity included in the Group, any claim or right in any case connected or related to the employment and administration relationships and their resolution.

The amount to be paid to Massimo Vian for his agreement to refrain from soliciting employees and associates of Luxottica Group S.p.A. or other entities within the Group, and for complying with a global territory non-competition agreement, both lasting 24 months from the date of termination of the employment relationship with the Company, shall be paid in equal quarterly installments starting from the date of termination of the employment relationship. The remaining amount shall be paid within 45 days after the termination of the employment relationship.

In light of the overall treatment determined as indicated above, and for the provisions not specifically contemplated in the Remuneration Policy, the agreement with Massimo Vian qualifies as a transaction with related parties of lesser significance pursuant to the Procedure adopted by the Company on the matter, which may not benefit from the exemption of the application of the related 2 procedural discipline. The terms and provisions of this transaction, prior to approval by the Board of Directors, were reviewed by the Human Resources Committee of Luxottica Group S.p.A, consisting of non-executive and unrelated directors, a majority of whom are independent. The Human Resources Committee, which is charged with carrying out the functions assigned by the Procedure to an internal committee of the Board with regard to remuneration and economic benefits to the Directors and executive officers with key responsibilities, expressed its reasoned favorable opinion on the terms of the agreement.

The Company acknowledges also the adoption of a new governance model, which replaces the former co-CEO model, and prevents from executing its outstanding succession plan, which was previously reviewed by the Human Resources Committee.

SOURCE: LUXOTTICA GROUP

Contacts
Alessandra Senici
Group Investor Relations and Corporate Communications Director
Tel.: +39 (02) 8633 4870
Email: InvestorRelations@luxottica.com
http://www.luxottica.com/en/investors/contacts

Marco Catalani
Group Corporate Media Relations Senior Manager
Tel.: +39 (02) 8633 4470
Email: corporate.communication@luxottica.com

Luxottica Group to acquire one of the largest optical franchisors in Brazil Óticas Carol

Milan , 2017-Jan-31 — /EPR Retail News/ — Luxottica Group S.p.A, a leader in the design, manufacture, distribution and sale of fashion, luxury and sports eyewear, signed an agreement with the current shareholders of Óticas Carol under which Luxottica will acquire 100% of Óticas Carol, one of the largest optical franchisors in Brazil with approximately 950 locations.

Established in 1997, Óticas Carol sells a broad range of prescription frames and sunglasses, with annual system sales of approximately Euro 200 million. Óticas Carol has achieved significant growth in recent years, strengthening its management team and growing its retail footprint from approximately 500 stores in 2013 to 950 in 2016, largely through established partnerships with franchisees.

“Brazil is a great country, one we have believed in and operated in for 25 years,” said Leonardo Del Vecchio, Executive Chairman of Luxottica Group. “With this transaction, we take one step further in completing our vertically integrated business model, which has shown many benefits for all our consumers”.

According to Ronaldo Pereira, CEO of Óticas Carol: “The transaction brings Carol to a whole new level. Our franchisees will belong to a global eyewear company, which brings them a greater sense of security to continue to grow and invest in our brand. Now we have all the necessary tools to move forward with our expansion plans”.

The transaction, which is valued at Euro 110 million, remains subject to customary regulatory approvals and is expected to close in the first half of 2017.

Upon completion, the transaction will mark Luxottica’s entry into the optical retail business in Brazil, a region with excellent growth potential in eyewear. Luxottica currently operates a network of Sunglass Hut stores in Brazil and has a solid presence through its wholesale business and a manufacturing plant in Campinas.

3i Group plc, Neuberger Berman and Siguler Guff & Company, LP are the major selling shareholders involved in the transaction.

Contact:

Alessandra Senici
Group Investor Relations and Corporate Communications Director
Tel: +39 02 8633 4870

Source: Luxottica Group

Luxottica Group announces the renewal of exclusive eyewear license agreement with Ralph Lauren Corporation

Milan (Italy), 2016-Dec-28 — /EPR Retail News/ — Luxottica Group (MTA: LUX; NYSE: LUX) today (December 22, 2016) announced the renewal of an exclusive license agreement with Ralph Lauren Corporation (NYSE: RL) for the development, production and worldwide distribution of sunglasses and prescription frames under certain Ralph Lauren brands, including Polo and Ralph Lauren. The ten-year agreement will extend to March 31, 2027, subject to the terms and conditions therein.

Luxottica Group S.p.A.
Luxottica is a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear. Its portfolio includes proprietary brands such as Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples and Alain Mikli, as well as licensed brands including Giorgio Armani, Burberry, Bulgari, Chanel, Coach, Dolce&Gabbana, Michael Kors, Prada, Ralph Lauren, Tiffany & Co. and Versace. The Group’s global wholesale distribution network covers more than 150 countries and is complemented by an extensive retail network of over 7,400 stores, with LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific, GMO in Latin America and Sunglass Hut worldwide. In 2015, Luxottica posted net sales of approximately Euro 9 billion and approximately 79,000 employees. Additional information on the Group is available at www.luxottica.com.

Safe Harbor Statement
Certain statements in this press release may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those which are anticipated. Such risks and uncertainties include, but are not limited to, the ability to manage the effects of the current uncertain international economic outlook, the ability to successfully acquire and integrate new businesses, the ability to predict future economic conditions and changes to consumer preferences, the ability to successfully introduce and market new products, the ability to maintain an efficient distribution network, the ability to set and achieve our business objectives and manage growth, the ability to negotiate and maintain favorable license agreements, the availability of correction alternatives to prescription eyeglasses, fluctuations in exchange rates, changes in local conditions, the ability to protect intellectual property, the ability to maintain relationships with those hosting our stores, any failure of information technology, inventory and other asset-related risks, credit risk on our accounts, insurance risks, changes in tax laws as well as other political, economic, legal and technological factors and other risks and uncertainties described in Luxottica Group’s filings with the U.S. Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, and we do not assume any obligation to update them.

Contacts:
Luxottica Group
Alessandra Senici
Group Investor Relations and Corporate Communications Director
Tel.: +39 (02) 8633 4870
Email: InvestorRelations@luxottica.com
http://www.luxottica.com/en/investors/contacts

Marco Catalani
Group Corporate Media Relations Senior Manager
Tel.: +39 (02) 8633 4470
Email: marco.catalani@luxottica.com

Source: Luxottica Group

Radar Pace™: Luxottica Group and Intel launch smart eyewear featuring real-time voice activated coaching system

Milan , 2016-Oct-06 — /EPR Retail News/ —  Today ( October 3, 2016), Luxottica Group and Intel announced the launch of Radar PaceTM, a smart eyewear featuring a real-time voice activated coaching system. Seeking to redefine the way athletes train, Radar Pace is the result of years of research and development between Luxottica’s Oakley brand and Intel. This revolutionary device, launching today on Oakley.com and in select Oakley retail stores, creates dynamic and personalized training programs, tracks performance, coaches in real-time and responds naturally to questions asked by the user.

Oakley and Intel teamed up to create a product that would allow athletes of all types to not only train hard but train well by equipping them with rich information and real-time feedback. Combining Oakley’s performance-centric design aesthetic with Intel’s experience-driven technology, Radar Pace delivers a truly innovative and personalized training mechanism for athletes of all skill levels.

Radar Pace is a virtual coach that supports athletes during every step of their running and cycling training journey – interpreting data in real-time, providing personalized and actionable instruction and motivation during the course of a workout and holding athletes accountable to a structured and dynamic training program. With a hands-free conversational interface powered by Intel® Real Speech, Radar Pace helps athletes stay focused and maintain optimal training position, and the Bluetooth® audio headset allows athletes to place and receive calls and texts and listen to music.

Continuing Oakley’s legacy of performance wearable technology and leveraging Intel’s innovation leadership, Radar Pace combines the power of possibility with the power of technology for a unique performance experience. “Radar Pace is a testament that everything can and will be made better,” said Scott Smith, Vice President of Strategic Partnerships at Luxottica. “It is the ultimate hands-free training wearable that will push the boundaries of smart eyewear.”

“Merging Oakley’s leading design and performance benefits with Intel’s technology, Radar Pace is a game changer in training and coaching,” said Ryan Saylor, Vice President of Advanced Product Development at Oakley. “One of the biggest benefits is the accountability – the coach being there with the athletes to help get the most out of every workout. It was a true collaboration that we hope will redefine the future of sport.”

TRACKS

With smart technology, external sensors and the Radar Pace app, the device collects and analyzes personal performance data (including power output, heart rate, speed, cadence, time, pace and distance) and equips athletes with rich information and real-time, audio coaching. The customized running or cycling programs calibrate based on performance, track performance compliance and adjust to make up for missed workouts. Instead of just giving athletes data, Radar Pace provides actionable feedback that is easy to digest, understand and implement.

COACHES

Radar Pace is a reliable virtual coach that supports every step of the training journey. Similar to a human coach, it creates a training program for athletes of all types – knowing what was accomplished to date and setting the goal for the next task ahead. By interpreting data in real-time and providing personalized instruction and motivation based on performance, the eyewear holds athletes accountable to a structured and dynamic training program, seeking to transform how athletes track and understand performance. With feedback provided directly through the eyewear, Radar Pace helps athletes make real-time adjustments without fumbling with a phone or watch. Radar Pace helps athletes stay focused on their goals and performance.

RESPONDS

Radar Pace’s natural voice interaction, powered by Intel® Real Speech, allows athletes to ask Radar Pace questions, receive real-time feedback and improve their understanding of the performance metrics tracked by the eyewear and external sensors. The device is intuitive, natural and hands-free so athletes can communicate with the system in a live, natural way during workouts.

“Through our collaboration, we have challenged each other to reinvent what is possible – each bringing our expertise to the office, lab, track or road,” said Josh Walden, Senior Vice President and General Manager, New Technology Group, Intel. “The end result is a powerful and innovative product that combines Intel technology and engineering expertise with Oakley’s sleek, lightweight design favorited by athletes around the world.”

Oakley products and technologies were designed with the world’s best athletes in mind, but the brand also believes that those same products and technologies should be made available to all. With real-time, personalized feedback, Radar Pace is a training coach for athletes of all levels.

Radar Pace also features Oakley PrizmTM, a revolutionary lens technology that dramatically enhances detail to help improve performance by providing ultra-precise color tuning, designed for specific environments. The Prizm Road lens that comes with Radar Pace brightens whites and enhances yellows, greens and reds so runners and cyclists can see subtle changes in road texture and spot hazards more easily for a confident training experience.

Radar Pace is made of two primary components: Oakley eyewear with integrated earbuds and microphone, and a mobile app for iOS and AndroidTM. The Radar Pace app is available for free download from the Apple® App Store® or on Google PlayTM.

Radar Pace will be distributed in North America, Australia and Europe. It is available on Oakley.com and select Oakley stores starting October 3, 2016 and in select wholesale and Sunglass Hut locations soon after. For more information, visit http://www.oakley.com/RadarPace.

About Luxottica Group

Luxottica is a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear. Its portfolio includes proprietary brands such as Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples and Alain Mikli, as well as licensed brands including Giorgio Armani, Burberry, Bulgari, Chanel, Coach, Dolce&Gabbana, Michael Kors, Prada, Ralph Lauren, Tiffany & Co. and Versace. The Group’s global wholesale distribution network covers more than 150 countries and is complemented by an extensive retail network of over 7,200 stores, with LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific, GMO in Latin America and Sunglass Hut worldwide. In 2015, Luxottica posted net sales of approximately Euro 9 billion and approximately 79,000 employees. Additional information on the Group is available at www.luxottica.com.

About Oakley, Inc.

Established in 1975 and headquartered in Southern California, Oakley is one of the leading product design and sport performance brands in the world. The holder of more than 600 patents, Oakley is a culture of creators, inventors, idealists and scientists obsessed with using design and innovation to create products and experiences that inspire greatness. This philosophy has made Oakley one of the most iconic and inimitable brands on the market, with products that world-class athletes around the globe depend on to compete at the highest level possible. Oakley is known for its High Definition Optics® , which feature unparalleled optical clarity and precision along with impact resistance and UV protection, incorporated into all of the brand’s sun, prescription eyewear and premium goggles. Oakley extended its position as the world’s leading sports eyewear brand into apparel and accessories. Oakley has men’s and women’s product lines that appeal to Sports Performance, Active and Lifestyle consumers. Oakley is a subsidiary of Luxottica Group. Additional information is available at www.oakley.com.

About Intel

Intel (NASDAQ: INTC) expands the boundaries of technology to make the most amazing experiences possible. Information about Intel can be found at newsroom.intel.com and intel.com.

EDITORIAL NOTES
Discover more:
Twitter: @oakley @intel
Instagram: @oakley @intel
Facebook: Facebook.com/Oakley Facebook.com/Intel
#OakleyRadarPace #Intel

For further information please contact:
Marco Catalani
Corporate Communications
Luxottica Group
0039 02 8633 4470
Marco.catalani@luxottica.com

Donatella Caggiano
Global Public Relations
Oakley, Inc.
949-829-6155
DonatellaCaggiano@oakley.com

Krystal Temple
Global Communications Group
Intel Corporation
480-552-1760
krystal.temple@intel.com

Source: Luxottica Group

Luxottica Group to announce 1H 2016 results via audio webcast on Monday, July 25, 2016

Milan, Italy, 2016-Jul-18 — /EPR Retail News/ — Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX), a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear, today announced that its 1H 2016 results will be available via audio webcast on Monday, July 25, 2016 at 12:30PM EDT (4:30PM GMT, 6:30PM CEST).

The audio webcast will be available to the financial community and the media from Luxottica Group’s corporate website at http://www.luxottica.com/en/investors/results-and presentations/webcasts.

Please note that a slide presentation will be available for download from Luxottica Group’s Investor Relations website at http://www.luxottica.com/en/investors/results-and-presentations shortly before the start of the audio webcast.

Luxottica Group will issue its 1H 2016 results on July 25, 2016, prior to the beginning of the audio webcast.

Certain financial and statistical information included in the audio webcast, as well as information required by Regulation G, will be available at the time of the webcast in the notes to the press release which will be available on Luxottica Group’s website at http://www.luxottica.com/en in the Press Releases section.

Contacts

Alessandra Senici
Group Investor Relations and Corporate Communications Director
Tel.: +39 (02) 8633 4870
Email: InvestorRelations@luxottica.com
http://www.luxottica.com/en/investors/contacts

Source: Luxottica Group

Luxottica Group S.p.A. acquired 255,279 shares during the period from June 28, 2016 to July 4, 2016 on the Milan Stock Exchange

Milan (Italy), 2016-Jul-06 — /EPR Retail News/ — During the period from June 28, 2016 to July 4, 2016, Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX) acquired 255,279 shares on the Milan Stock Exchange’s Mercato Telematico Azionario (MTA) equal to 0.053% of the issued share capital. The shares were bought at an average price per share equal to Euro 44.7176, net of commissions, and for an aggregate amount of Euro 11,415,455.93.

These purchases were made pursuant to the plan to purchase treasury shares, announced on May 24, 2016, and in accordance with the resolution approved at the Company’s General Meeting of Stockholders on April 29, 2016. Since the resolution approval, the Company acquired to date a total of 2,277,583 shares equal to 0.471% of the issued share capital.

Details of the treasury share purchase transactions on the MTA are as follows:

Date Number of ordinary
shares purchased
Average price (Euro) Aggregate amount (Euro)
06/28/2016 43,759 46.1717 2,020,427.42
06/29/2016 44,306 45.4798 2,015,028.02
06/30/2016 63,255 44.0897 2,788,893.97
07/01/2016 41,574 43.9989 1,829,210.27
07/04/2016 62,385 44.2718 2,761,896.24
Total 255,279 44.7176 11,415,455.93

Following the purchases announced today and the treasury shares held, as of July 4, 2016 the Company owns 4,476,721 treasury shares equal to 0.925% of the share capital.

Luxottica Group S.p.A.
Luxottica is a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear. Its portfolio includes proprietary brands such as Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples and Alain Mikli, as well as licensed brands including Giorgio Armani, Burberry, Bulgari, Chanel, Coach, Dolce&Gabbana, Michael Kors, Prada, Ralph Lauren, Tiffany & Co. and Versace. The Group’s global wholesale distribution network covers more than 150 countries and is complemented by an extensive retail network of over 7,200 stores, with LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific, GMO in Latin America and Sunglass Hut worldwide. In 2015, Luxottica posted net sales of approximately Euro 9 billion and approximately 79,000 employees. Additional information on the Group is available at www.luxottica.com.

Contacts:

Alessandra Senici
Group Investor Relations and Corporate Communications Director
Tel.: +39 (02) 8633 4870
Email: InvestorRelations@luxottica.com
http://www.luxottica.com/en/investors/contacts

Source: Luxottica Group

Macy’s, Inc. Q3: Spending by domestic customers remained tepid, especially in key apparel and accessory categories

Company updates guidance, outlines strategy on real estate

CINCINNATI, 2015-11-12 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today reported earnings per share of 36 cents in the third quarter of 2015, ended Oct. 31, 2015. Excluding asset impairment charges of $111 million, or 20 cents per share, primarily related to the previously-announced plans to close 35 to 40 stores in early 2016, third quarter earnings per share were 56 cents per share. This compares with 61 cents per diluted share in the third quarter of 2014.

(Editor’s Note: This morning, Macy’s, Inc and Luxottica Group also issued a separate news release announcing an agreement to open licensed LensCrafters departments in as many as 500 Macy’s stores.)

For the first three quarters of 2015, Macy’s, Inc.’s diluted earnings per share were $1.56. Excluding asset impairment charges of $111 million, or 20 cents per share, primarily related to planned 2016 store closings, year-to-date earnings per diluted share were $1.76. This compares with earnings of $2.01 per diluted share in the first three quarters of 2014.

“We are disappointed that the pace of sales did not improve in the third quarter, as we had expected. Spending by domestic customers remained tepid, especially in key apparel and accessory categories. Simultaneously, the slowdown in buying by international visitors continued to significantly impact Macy’s and Bloomingdale’s stores in tourist centers, which are some of our company’s largest-volume and most profitable locations,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc.

“We have begun testing and learning from new sales growth initiatives that we believe will begin yielding incremental results in the quarters and years ahead. This included the opening of the first five Macy’s Backstage off-price stores in the New York City metro area (with a sixth opening planned in the fourth quarter),” Lundgren said.

“Heading into the fourth quarter, we are shifting our organization into overdrive to focus on sales-driving activities in the holiday shopping season, when Macy’s and Bloomingdale’s shine as destinations for gift-giving and self-purchase,” he added. “We also will be opening stores in several of our nameplates in the fourth quarter, including a new Bloomingdale’s at Ala Moana in Honolulu.”

“Moving forward, we are accelerating steps needed to adapt in response to changing customer shopping preferences so we can restore our annual comparable sales growth on an owned plus licensed basis in the years ahead to the level of 2 percent to 3 percent while re-attaining an EBITDA rate as percent of sales of 14 percent. This includes building on our strength as a leading omnichannel innovator with consistent growth in online sales,” Lundgren said. “No other retailer has our track record of mastering change and creating shareholder value with a model of customer centricity. We have a deep and resourceful management team that is skilled in creating and executing successful strategies. Since the beginning of fiscal 2009, we have returned nearly $9 billion to shareholders. Our Total Shareholder Return has been 540 percent during that period, compared with a 121 percent increase in the Dow Jones Industrial Average.”

Real Estate Considerations

Macy’s, Inc. is pursuing the following strategic real estate initiatives:

  • Based on a successful collaboration on Macy’s previously announced Brooklyn store redevelopment project, the company has engaged Tishman Speyer in an expanded relationship to advise and support the company’s senior management team in identifying and advancing potential store redevelopment projects nationwide. The company may request Tishman Speyer to participate in bidding for certain of these projects. In all cases, a third party will be used to manage the bidding and negotiations process.
  • The company has begun a process to explore joint ventures or other deal structures with third parties to redevelop Macy’s flagship real estate assets in Manhattan (Herald Square), San Francisco (Union Square), Chicago (State Street) and Minneapolis (downtown Nicollet Mall) in a manner that maintains a robust Macy’s retail store presence while also bringing alternative use into those buildings; this exploration could expand to include other assets, including mall-based properties, to the extent opportunities are available.
  • The company will continue to pursue selected real estate dispositions and monetize assets in instances where the business is simultaneously enhanced (such as the recently announced real estate sales of underutilized portions of properties in Brooklyn and downtown Seattle) or where the value of real estate significantly outweighs the value of the retail business (such as the recent sale of Macy’s stores in Cupertino and downtown Pittsburgh).

After extensive review with the assistance of our experienced financial, tax, legal and real estate advisors, the company has decided not to pursue the formation of a REIT at this time. The board of directors has concluded that a REIT does not offer sufficient upside potential for value creation. To the extent that circumstances change, we may revisit this alternative in the future.

While much work has been done to date, Macy’s, Inc. is continuing to analyze its real estate portfolio to identify opportunities to drive additional shareholder value. The company is open to considering additional ideas for further enhancing shareholder value while maintaining an investment-grade credit rating and an operating structure that fosters sales and earnings growth.

Ongoing Business Strategies/Actions

Macy’s, Inc. is continuing to execute a number of key strategies and actions going forward to adapt its business model as an omnichannel retailer committed to outstanding stores as a competitive differentiator. These adjustments are rooted in Macy’s MOM strategies (My Macy’s localization, Omnichannel and Magic Selling customer engagement) and Bloomingdale’s focus on omnichannel opportunities, contemporary style and personalized service — which have proven to be a powerful driver of success. In part, the company is:

  • Accelerating investments in Macy’s, Bloomingdale’s and Bluemercury’s digital and mobile capabilities to mirror the shift to increased online shopping, where the company continues to see double-digit, year-over-year sales increases. Macy’s, Inc. is already a leader in this area, and ranked as the seventh largest Internet retailer in the United States.
  • Concentrating its resources in top stores in the best locations so each store is a more compelling magnet for customer activity and uses its selling space more productively. Best stores will see intensified merchandise assortments in key destination departments such as jewelry and watches, strategically selected licensed departments, strengthened visual presentation, enhanced staffing and more local marketing. Meanwhile, in early 2016, the company will be closing 35 to 40 of its current portfolio of about 800 Macy’s and Bloomingdale’s stores, as previously announced, and expects it will continue to reduce the number of stores over time.
  • Reducing expense and tightening capital spending to operate more efficiently and fund the highest-potential growth initiatives. Macy’s, Inc.’s target is to reduce annual SG&A by $500 million (net of growth initiatives) from previously planned levels by 2018, with incremental progress in 2016 and 2017 toward that goal. These structural expense reductions will result in charges to be taken in each of the three years. Specific plans to achieve these savings are being formulated. Macy’s, Inc. will reduce capital spending to less than $1 billion in 2016 from the $1.2 billionexpected in 2015.

The company also is quickly building-out new directions for the longer-term future:

  • Expand Macy’s Backstage as an exciting new dimension in retailing across America. Over the next two years, the company will roll out about 50 free-standing Macy’s Backstage stores in off-mall locations, building on the pilot launch this fall. In addition, in spring 2016 the company will pilot Backstage stores within up to 10 existing Macy’s store locations, creating a new hybrid store (the first in retailing) that offers the latest fashions, outstanding service and major brands for which Macy’s is known, along with the thrill of the hunt associated with the finds and bargains at Backstage.
  • Open approximately 40 additional Bluemercury self-standing beauty specialty stores (bringing the total store base to approximately 115 by the end of 2017), while also integrating Bluemercury shops into the beauty departments of Macy’s stores.
  • Appropriately expand Macy’s internationally based on the learnings we expect from the Macy’s China Limited pilot with Alibaba’s Tmall Global beginning in the fourth quarter.

Third Quarter Sales

Sales in the third quarter of 2015 totaled $5.874 billion, a decrease of 5.2 percent, compared with sales of $6.195 billion in the same period last year. Comparable sales on an owned plus licensed basis were down by 3.6 percent in the third quarter. On an owned basis, third quarter comparable sales declined by 3.9 percent.

For the year to date, Macy’s, Inc. sales totaled $18.210 billion, down 2.8 percent from total sales of $18.741 billion in the first three quarters of 2014. Comparable sales on an owned plus licensed basis were down by 1.7 percent year-to-date in 2015. On an owned basis, year-to-date comparable sales declined by 2.2 percent.

In the third quarter, the company opened a new Macy’s store in Ponce, PR, five Macy’s Backstage stores in metroNew York City, and 10 new Bluemercury freestanding specialty stores. The company closed Macy’s stores inBedford, NH, and Owings Mills, MD. In the fourth quarter, scheduled store openings include a full-line Bloomingdale’s in Honolulu, three Bloomingdale’s Outlets, and one Macy’s Backstage. A Macy’s store in Los Angeles, is scheduled to close in the fourth quarter of 2015 in preparation for a new store to be built in the same mall.

Operating Income

Macy’s, Inc.’s third quarter 2015 operating income was $369 million or 6.3 percent of sales, excluding asset impairment charges of $111 million primarily related to previously-announced plans to close 35 to 40 stores in early 2016. This compares with operating income of $422 million or 6.8 percent of sales for the same period last year. Macy’s, Inc.’s operating income including the asset impairment charges totaled $258 million or 4.4 percent of sales for the quarter ended Oct. 31, 2015.

For the first three quarters of 2015, Macy’s, Inc.’s operating income was $1.214 billion or 6.7 percent of sales, excluding asset impairment charges of $111 million primarily related to previously-announced store closings. This compares with operating income of $1.436 billion or 7.7 percent of sales for the same period last year. Macy’s, Inc.’s year-to-date 2015 operating income including the asset impairment charges totaled $1.103 billion or 6.1 percent of sales.

Cash Flow

Net cash provided by operating activities was $278 million in the first three quarters of 2015, compared with $841 million in the first three quarters of 2014. Net cash used by investing activities in the first three quarters of 2015 was$861 million, compared with $660 million a year ago. Investing activities in year-to-date 2015 included $212 million for the acquisition of Bluemercury. Net cash used by financing activities in the first three quarters of 2015 was $1.189 billion, compared with net cash used by financing activities in the first three quarters of 2014 of $1.406 billion.

The company repurchased approximately 16.7 million shares of its common stock for a total of approximately $900 million in the third quarter of 2015. In the fiscal year to date, the company repurchased approximately 30.6 million shares of its common stock for approximately $1.84 billion. At Oct. 31, 2015, the company had remaining authorization to repurchase up to approximately $700 million of its common stock.

Updated Guidance

The company has revised its 2015 guidance. Earnings per diluted share for the full-year 2015 now are expected in the range of $4.20 to $4.30, excluding asset impairment charges associated primarily with previously announced store closings. This compares with previous guidance in the range of $4.70 to $4.80. Updated annual guidance calculates to guidance for fourth quarter earnings of $2.54 to $2.64 per diluted share, excluding any additional charges associated with store closings or cost reductions. Earnings guidance for 2015 includes gains from asset sales, including approximately $60 million from the sale of real estate in Seattle and an expected $250 million gain on the sale of real estate in downtown Brooklyn.

Guidance is for full-year 2015 comparable sales on an owned plus licensed basis to decrease by 1.8 percent to 2.2 percent, compared with previous guidance of approximately flat. This calculates to fourth quarter comparable sales on an owned plus licensed basis to decline by 2.0 percent to 3.0 percent. Full-year and fourth quarter 2015 comparable sales on an owned basis will be approximately 50 basis points lower than on an owned plus licensed basis. The company expects 2015 total sales to be down by 2.7 percent to 3.1 percent, compared to previous guidance for total sales to be down approximately 1 percent.

Important Information Regarding Financial Measures

Please see the final pages of this news release for important information regarding the calculation of the company’s comparable sales and non-GAAP financial measures.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.105 billion. The company operates about 900 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission. In light of these risks and uncertainties, readers are cautioned not to place undue reliance on forward-looking statements. Except as may be required by applicable law, Macy’s disclaims any obligation to update its forward-looking statements for any reason.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom. A webcast of Macy’s, Inc.’s call with analysts and investors will be held today (Nov. 11) at 9 a.m. (ET). Macy’s, Inc.’s webcast is accessible to the media and general public via the company’s website at www.macysinc.com. Analysts and investors may call in on 1-888-637-7746, passcode 3336328. A replay of the conference call can be accessed on the website or by calling 1-888-203-1112 (same passcode) about two hours after the conclusion of the call.)

Macy’s, Inc. management will present at the Morgan Stanley Global Consumer & Retail Conference at 10 a.m. Eastern Time on Wednesday, Nov. 18, 2015, in New York City. Media and investors may access the live webcast of the presentation at www.macysinc.com/ir at that time. The webcasts will be available for replay.

Source: Macy’s, Inc.

Macy’s, Inc.
Media – Jim Sluzewski, 513-579-7764
Investor – Matt Stautberg, 513-579-7780

Luxottica Group to bring LensCrafters optical retail experience to 500 Macy’s department stores in U.S.

CINCINNATI & MILAN, 2015-11-12 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M), one of the premier retailers inthe United States, and Luxottica Group S.p.A. (MTA:LUX; NYSE:LUX), a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear, today announced an agreement to bring the LensCrafters optical retail experience to as many as 500 Macy’s department stores in the U.S. over the next three years.

The licensed department agreement builds on a successful relationship between the two companies that has resulted in the opening of approximately 670 of Luxottica’s Sunglass Hut locations within Macy’s stores to date. Together, Macy’s and Sunglass Hut have more than tripled the size of the sunglass business at Macy’s in the past six years. Using a proven model for success, LensCrafters, a leader in quality eye care, will now be the exclusive optical retailer of Macy’s and the first optical retail brand to expand nationally in a major department store. Macy’s will be the exclusive department store host of LensCrafters shops.

LensCrafters will open its first new Macy’s location in April of 2016, with the goal of opening approximately 100 locations by the end of next year. The stores will feature a new design concept created specifically for Macy’s customers, offering top fashion and luxury eyewear from brands including Ray-Ban, Oakley, Prada and Armani. Each department will be staffed by a LensCrafters affiliated optometrist, offer the industry’s most advanced eye care equipment and leverage the brand’s existing lab network to ensure the highest level of service. Macy’s 35 million customers will have access to the broadest assortment of premium frames, along with a unique in-store digital experience that includes lens simulators and virtual try-on technology.

“We look forward to welcoming LensCrafters into Macy’s stores nationwide and to deepening our successful relationship with Luxottica,” said Jeff Gennette, president of Macy’s, Inc. “In particular, LensCrafters reinforces Macy’s commitment to the health and wellness of our customers. Eye health is critical to everyone’s personal well-being, and easy in-store access to LensCrafters optometrists, personalized service and fashionable product assortment dovetail well with Macy’s strengths. As with Sunglass Hut, LensCrafters will enhance the productivity of our stores and strengthen Macy’s as a shopping destination.”

“Macy’s and Luxottica have a successful history together. Our relationship is built around a shared mission of providing customers with the highest quality products, a passion for style and a broad brand portfolio able to meet diverse consumer choices,” said Adil Khan, CEO of Markets, Luxottica Group. “The optical retail industry has incredible growth potential in North America and we see this agreement as a long-term investment in our customers’ eyes. Macy’s has a highly-engaged, influential customer – we will serve them to the highest standard with an optical experience that is uniquely LensCrafters.”

Macy’s Inc.
Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.105 billion. The company operates about 900 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

Luxottica Group S.p.A.
Luxottica is a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear. Its portfolio includes proprietary brands such as Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples and Alain Mikli, as well as licensed brands including Giorgio Armani, Burberry, Bvlgari, Chanel, Dolce & Gabbana, Michael Kors, Prada,Ralph Lauren, Tiffany and Versace. The Group’s global wholesale distribution covers 130 countries and is complemented by an extensive retail network of over 7,000 stores, with LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific, GMO in Latin America and Sunglass Hut worldwide. In 2014Luxottica posted sales of over 7.6 billion euro and had approximately 78,000 employees. More information available at www.luxottica.com.

Macy’s Inc.
Jim Sluzewski, 513-579-7764
Senior Vice President – Corporate Communications and External Affairs
Jim.Sluzewski@macys.com
or
Luxottica Group
Jane Lehman, 646-335-5200
Vice President, Corporate Communications, N.A.
JLehman@us.luxottica.com

SOURCE: Macy’s, Inc.