Milan, Italy – July 27, 2006 - Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX), the global
leader in the eyewear sector, today announced consolidated U.S. GAAP results for the
three- and six-month periods ended June 30, 2006. Financial highlights for the respective
periods were as follows:

Second quarter of 2006¹

• Consolidated sales: €1,294.8 million (+13.0%)
- Retail sales: €907.1 million (+7.6%); Retail comparable store sales²: +6.4%
- Total wholesale sales: €486.4 million (+32.1%)
• Consolidated operating income: €217.4 million (+31.2%); Operating margin: 16.8%
- Retail operating income: €126.1 million (+25.3%); Retail operating margin: 13.9%
- Wholesale operating income: €135.2 million (+49.7%); Wholesale operating margin:
27.8%
• Consolidated net income: €121.2 million (+33.1%); Net margin: 9.4%
• Earnings per share: €0.27 (US$0.34 per ADS)

First half of 2006³

• Consolidated sales: €2,556.8 million (+17.1%)
- Retail sales: €1,798.0 million (+12.4%); Retail comparable store sales⁴: +7.3%
- Total wholesale sales: €942.0 million (+35.5%)
• Consolidated operating income: €408.9 million (+35.3%); Operating margin: 16.0%
- Retail operating income: €238.3 million (+34.5%); Retail operating margin: 13.3%
- Wholesale operating income: €253.6 million (+50.9%); Wholesale operating margin:
26.9%
• Consolidated net income: €224.5 million (+34.1%); Net margin: 8.8%
• Earnings per share: €0.50 (US$0.61 per ADS)

Andrea Guerra, chief executive officer of Luxottica Group, commented: “Results for the
first half of 2006 were outstanding all around, in all regions and in both our wholesale and
retail businesses. We continued to significantly outpace growth in our sector, gaining
additional market share in key markets as well as additional visibility and penetration for
our brands. This resulted in an improvement in operating income by 35.3%, with operating
margin rising significantly by 220 basis points to 16.0%.”

Mr. Guerra continued: “Year-to-date, our business showed signs of strength that we
believe are important when looking at the second half of the year and beyond. On the
retail front, Pearle Vision’s line-by-line P&L improvement proved that its new business
model is the right one. Sunglass Hut posted a fifth quarter in a row of double-digit
comparable store sales and its new, completely fashion-focused store environment is
attracting the right profile of customers. Similarly, LensCrafters’ renewed focus on
premium fashion and the highest standard of service is paying off. In addition, the
performance of LensCrafters stores with the new format is particularly encouraging. On
the wholesale front, our luxury brands are experiencing extremely strong momentum, with
house brands also performing well behind outstanding results from Ray-Ban. At the same
time, already strong growth in existing markets was outpaced by significantly higher
growth rates in emerging markets. As a result, today we are on track to deliver results for
the full year 2006 above our original forecast, with net income expected to grow by up to
24 percent. Growth is then expected to continue beyond 2006 thanks to the many
opportunities already existing within our business.”

Luxottica Group now expects to post earnings per share (EPS) for fiscal year 20065 of
between €0.93 and €0.94 (or earnings per American Depositary Share of between US$1.16
and US$1.17). Luxottica Group’s updated forecast for fiscal year 2006 is based on a €1 =
US$1.2444 average exchange rate for the twelve-month period, in line with the actual
average exchange rate for fiscal year 2005.

Mr. Guerra concluded: “I am especially pleased to report that cash flow generation was for
yet another quarter one of the highlights of our results, with €150 million before the
payment of dividends and acquisitions. This is an important testament to the strength of
our business.” On June 30, 2006, Luxottica Group’s consolidated net outstanding debt was
€1,505.2 million (compared with net outstanding debt of €1,457.4 million on March 31,
2006), showing a strong improvement compared with June 30, 2005.

The second quarter was a record period for the wholesale business. While sales to third
parties – a key measure of our wholesale business – rose by 27.1%, operating margin
jumped 330 basis points to 27.8%, in line with all-time highs for our wholesale Division.
Main drivers of this performance were: the strength and further improved penetration of
the Group’s luxury and fashion brands – mainly Bvlgari, Chanel, Dolce & Gabbana, Prada
and Versace; another strong, above 20%-growth quarter by Ray-Ban; and, ongoing success
in strengthening ties with key customers around the world through our superior service.

In the retail business, the Group enjoyed another quarter of particularly strong results,
especially from operations in North America, with overall performance and comparable
store sales growth rates above those of the premium retail sector in that market.
LensCrafters posted another above-average quarter, while Sunglass Hut’s comparable store
sales rose by over 11%. Similarly, Pearle Vision posted its third consecutive quarter of
growth, with comparable store sales up to mid single-digits and further improvements in
profitability. In Asia-Pacific, the Group’s optical business continued to be the main driver.
Overall, operating profitability for the Group’s retail operations rose by 200 basis points to
13.9% for the quarter, and by 220 basis points to 13.3% for the year-to-date period.

Results for the quarter and the year-to-date period reflect the impact of non-cash
expenses for stock options6 of €11 million and €21 million, respectively, compared with no
such impact for the first two quarters of 2005.

Luxottica Group’s consolidated results for the second quarter and first half of 2006 were
approved today by its Board of Directors.

About Luxottica Group S.p.A.

Luxottica Group is a global leader in eyewear, with nearly 5,700 optical and sun retail
stores in North America, Asia-Pacific, China and Europe and a strong brand portfolio that
includes Ray-Ban, the best selling sun and prescription eyewear brand in the world, as well
as, among others, license brands Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna
Karan, Prada, Versace and Polo Ralph Lauren, beginning January 2007, and key house
brands Vogue, Persol, Arnette and REVO. In addition to a global wholesale network that
touches 130 countries, the Group manages leading retail brands such as LensCrafters and
Pearle Vision in North America, OPSM and Laubman & Pank in Asia-Pacific, and Sunglass
Hut globally. The Group’s products are designed and manufactured in six Italy-based highquality
manufacturing plants and in the only two China-based plants wholly-owned by a
premium eyewear manufacturer. For fiscal year 2005, Luxottica Group (NYSE: LUX; MTA:
LUX) posted consolidated net sales of €4.4 billion. 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, fluctuations in exchange rates, economic and weather factors affecting consumer
spending, the ability to successfully introduce and market new products, the availability of
correction alternatives to prescription eyeglasses, the ability to successfully launch
initiatives to increase sales and reduce costs, the ability to effectively integrate recently
acquired businesses, including Cole National, risks that expected synergies from the
acquisition of Cole National will not be realized as planned and that the combination of
Luxottica Group’s managed vision care business with Cole National will not be as successful
as planned, as well as other political, economic and technological factors and other risks
referred to 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, under U.S.
securities regulation, Luxottica Group does not assume any obligation to update them.

Company media and investor relations contacts

Luxottica Group S.p.A.

Luca Biondolillo, Head of Communications
Tel.:  +39 (02) 8633 4062 
Email: LucaBiondolillo@Luxottica.com

Alessandra Senici, Senior Manager, Investor Relations
Tel.:  +39 (02) 8633 4069 
Email: AlessandraSenici@Luxottica.com

 

- TABLES TO FOLLOW -

 

1 All comparisons, including percentage changes, are between the three-month periods ended June
30, 2006, and 2005
2 Comparable store sales reflects the change in sales from one period to another that, for
comparison purposes, includes in the calculation only stores open in the more recent period that
also were open during the comparable prior period, and applies to both periods the average
exchange rate for the prior period and the same geographic area.
3 All comparisons, including percentage changes, are between the six-month periods ended June 30,
2006, and 2005
4 Comparable store sales reflects the change in sales from one period to another that, for
comparison purposes, includes in the calculation only stores open in the more recent period that
also were open during the comparable prior period, and applies to both periods the average
exchange rate for the prior period and the same geographic area.
5 Luxottica Group’s forecast for fiscal year 2006 includes the expected impact of non-cash expenses
for stock options, in line with the adoption of SFAS 123 (R) as of June 30, 2006.
6 The non-cash expenses for stock options for the three- and six-month periods ended June 30,
2006, resulted from the application of SFAS 123 (R).

 

LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE THREE-MONTH PERIODS ENDED
JUNE 30, 2006 AND JUNE 30, 2005

 

KEY FIGURES IN THOUSANDS OF EURO ⁽⁴⁾

	2006	2005	% Change
NET SALES	1,294,817	1,145,566	13.0%
NET INCOME	121,222	91,067	33.1%
EARNINGS PER SHARE (ADS) (2)	0.27	0.20
FULLY DILUTED EARNINGS PER SHARE (ADS) (3)	0.27	0.20

 

KEY FIGURES IN THOUSANDS OF U.S. DOLLARS ^{(1) (4)}

	2006	2005	% Change
NET SALES	1,628,750	1,442,726	12.9%
NET INCOME	152,485	114,690	33.0%
EARNINGS PER SHARE (ADS) (2)	0.34	0.25
FULLY DILUTED EARNINGS PER SHARE (ADS) (3)	0.33	0.25

 Notes : (2006) (2005)
(1) Average exchange rate (in U.S. Dollars per Euro) (1.2579) (1.2594)
(2) Weighted average number of outstanding shares (452,839,388) (449,821,300)
(3) Fully diluted average number of shares (455,838,344) (452,429,155)
(4) Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively

 

LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE SIX-MONTH PERIODS ENDED
JUNE 30, 2006 AND JUNE 30, 2005 

KEY FIGURES IN THOUSANDS OF EURO ⁽⁴⁾

	2006	2005	% Change
NET SALES	2,556,815	2,182,567	17.1%
NET INCOME	224,471	167,405	34.1%
EARNINGS PER SHARE (ADS) (2)	0.50	0.37
FULLY DILUTED EARNINGS PER SHARE (ADS) (3)	0.49	0.37

 

KEY FIGURES IN THOUSANDS OF U.S. DOLLARS ^{(1) (4)}

	2006	2005	% Change
NET SALES	3,142,837	2,803,944	12.1%
NET INCOME	275,920	215,065	28.3%
EARNINGS PER SHARE (ADS) (2)	0.61	0.48
FULLY DILUTED EARNINGS PER SHARE (ADS) (3)	0.61	0.48

Notes : (2006) (2005)
(1) Average exchange rate (in U.S. Dollars per Euro) (1.2292) (1.2847)
(2) Weighted average number of outstanding shares (452,433,840) (449,524,021)
(3) Fully diluted average number of shares (455,655,141) (452,216,587)
(4) Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively

LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE THREE-MONTH PERIODS ENDED
JUNE 30, 2006 AND JUNE 30, 2005

 

In thousands of Euro (1)	2Q06	% of sales	2Q05	% of sales	% Change
NET SALES	1,294,817	100.0%	1,145,566	100.0%	13.0%
COST OF SALES	(392,179)		(364,419)
GROSS PROFIT	902,638	69.7%	781,146	68.2%	15.6%
OPERATING EXPENSES:
SELLING EXPENSES	(416,467)		(393,250)
ROYALTIES	(28,964)		(17,981)
ADVERTISING EXPENSES	(98,292)		(83,428)
GENERAL AND ADMINISTRATIVE EXPENSES	(127,545)		(107,227)
TRADEMARK AMORTIZATION	(13,957)		(13,537)
TOTAL	(685,225)		(615,422)
OPERATING INCOME	217,414	16.8%	165,724	14.5%	31.2%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES	(17,821)		(15,946)
INTEREST INCOME	1,939		1,260
OTHER - NET	(7,056)		1,095
OTHER INCOME (EXPENSES) NET	(22,938)		(13,591)
INCOME BEFORE PROVISION FOR  INCOME TAXES	194,476	15.0%	152,133	13.3%	27.8%
PROVISION FOR INCOME TAXES	(71,957)		(57,811)
INCOME BEFORE MINORITY INTEREST IN  INCOME OF CONSOLIDATED SUBSIDIARIES	122,519		94,322
MINORITY INTEREST IN INCOME  OF CONSOLIDATED SUBSIDIARIES	(1,297)		(3,255)
NET INCOME	121,222	9.4%	91,067	7.9%	33.1%
EARNINGS PER SHARE (ADS) (1)	0.27		0.20
FULLY DILUTED EARNINGS PER SHARE (ADS) (1)	0.27		0.20
WEIGHTED AVERAGE NUMBER OF  OUTSTANDING SHARES	452,839,388		449,821,300
FULLY DILUTED AVERAGE NUMBER OF SHARES	455,838,344		452,429,155

Notes :
(1) Except earnings per share (ADS), which are expressed in Euro

LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE SIX-MONTH PERIODS ENDED
JUNE 30, 2006 AND JUNE 30, 2005

 

In thousands of Euro (1)	2006	% of sales	2005	% of sales	% Change
NET SALES	2,556,815	100.0%	2,182,567	100.0%	17.1%
COST OF SALES	(789,006)		(698,478)
GROSS PROFIT	1,767,809	69.1%	1,484,089	68.0%	19.1%
OPERATING EXPENSES:
SELLING EXPENSES	(846,128)		(766,802)
ROYALTIES	(55,618)		(34,528)
ADVERTISING EXPENSES	(185,719)		(149,094)
GENERAL AND ADMINISTRATIVE EXPENSES	(242,881)		(204,911)
TRADEMARK AMORTIZATION	(28,592)		(26,583)
TOTAL	(1,358,937)		(1,181,917)
OPERATING INCOME	408,871	16.0%	302,172	13.8%	35.3%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES	(35,409)		(31,753)
INTEREST INCOME	3,599		3,215
OTHER - NET	(11,904)		7,576
OTHER INCOME (EXPENSES) NET	(43,714)		(20,962)
INCOME BEFORE PROVISION FOR  INCOME TAXES	365,157	14.3%	281,210	12.9%	29.9%
PROVISION FOR INCOME TAXES	(135,108)		(106,860)
INCOME BEFORE MINORITY INTEREST IN  INCOME OF CONSOLIDATED SUBSIDIARIES	230,049		174,350
MINORITY INTEREST IN INCOME  OF CONSOLIDATED SUBSIDIARIES	(5,578)		(6,945)
NET INCOME	224,471	8.8%	167,405	7.7%	34.1%
EARNINGS PER SHARE (ADS) (1)	0.50		0.37
FULLY DILUTED EARNINGS PER SHARE (ADS) (1)	0.49		0.37
WEIGHTED AVERAGE NUMBER OF  OUTSTANDING SHARES	452,433,840		449,524,021
FULLY DILUTED AVERAGE NUMBER OF SHARES	455,655,141		452,216,587

Notes :
(1) Except earnings per share (ADS), which are expressed in Euro