MENU You are here HOME / Investors / Archive / Risk Management Policy / RISK MANAGEMENT X THIS WEBSITE OR THIRD-PARTY TOOLS USED BY THE SITE ITSELF USE THE COOKIES NECESSARY FOR OPERATION AND USEFUL FOR THE OBJECTIVES ILLUSTRATED IN THE COOKIE POLICY, INCLUDING THE POSSIBILITY OF SENDING YOU ADVERTISEMENTS ACCORDING TO YOUR INTERESTS. IF YOU WANT TO KNOW MORE OR REFUSE CONSENT TO ALL OR SOME OF THE COOKIES, CONSULT THE COOKIE POLICY. BY CLOSING THIS BANNER, SCROLLING THIS PAGE, CLICKING ON A LINK OR CONTINUING BROWSING IN ANY OTHER WAY, YOU WILL AGREE TO USE OF THE COOKIES. ACCEPT COOKIES RISK MANAGEMENT Our future operating results and financial condition may be affected by various factors, including those set forthbelow. RISKS RELATING TO OUR INDUSTRY AND GENERAL ECONOMIC CONDITIONSRISKS RELATING TO THE COMBINATION WITH THE ESSILORRISKS RELATING TO OUR BUSINESS AND OPERATIONSFINANCIAL RISKS A. IF CURRENT ECONOMIC CONDITIONS DETERIORATE, DEMAND FOR OUR PRODUCTS WILL BE ADVERSELY IMPACTED, ACCESS TO CREDIT WILL BE REDUCED AND OUR CUSTOMERS AND OTHERS WITH WHICH WE DO BUSINESS WILL SUFFER FINANCIAL HARDSHIP. ALL OF THESE FACTORS COULD REDUCE SALES AND IN TURN ADVERSELY IMPACT OUR BUSINESS, RESULTS OF OPERATIONS, FINANCIAL CONDITION AND CASH FLOWS Our operations and performance depend significantly on worldwide economic conditions. Uncertainty about global economic conditions poses a risk to our business because consumers and businesses may postpone spending in response to tighter credit markets, unemployment, negative financial news and/or declines in income or asset values, which could have a material adverse effect on demand for our products and services. Discretionary spending is affected by many factors, including general business conditions, inflation, interest rates, consumer debt levels, unemployment rates, availability of consumer credit, conditions in the real estate and mortgage markets, currency exchange rates and other matters that influence consumer confidence. Many of these factors are outside our control. READ ALL B. IF OUR BUSINESS SUFFERS DUE TO CHANGING LOCAL CONDITIONS, OUR PROFITABILITY AND FUTURE GROWTH MAY BE AFFECTED We currently operate worldwide and have our operations in many countries, including certain developing countries in Asia, South America and Africa. Therefore, we are subject to various risks inherent in conducting business internationally, including the following: Exposure to local economic and political conditions Export and import restrictions Currency exchange rate fluctuations and currency controls Cash repatriation restrictions Application of the Foreign Corrupt Practices Act and similar laws Difficulty in enforcing intellectual property and contract rights Disruptions of capital and trading markets • Accounts receivable collection and longer payment cycles Potential hostilities and changes in diplomatic and trade relationships Legal or regulatory requirements Withholding and other taxes on remittances and other payments by subsidiaries Local antitrust and other market abuse provisions Investment restrictions or requirements Local content laws requiring that certain products contain a specified minimum percentage of domestically produced components. READ ALL C. RECENT POLITICAL CHANGES IN CERTAIN COUNTRIES IN WHICH WE DO SIGNIFICANT BUSINESS HAVE RESULTED IN GLOBAL REGULATORY UNCERTAINTY WITH RESPECT TO INTERNATIONAL TRADE MAY AND COULD MATERIALLY ADVERSELY AFFECT OUR BUSINESS, FINANCIAL CONDITION AND RESULTS OF OPERATIONS BY INCREASING COSTS AND SLOWING DISTRIBUTION PROCESSES. On June 23, 2016, the United Kingdom held a referendum in which voters approved an exit from the European Union, commonly referred to as “Brexit.” As a result of the referendum, the British government has indicated that it will formally notify the European Union of the United Kingdom’s intent to withdraw on March 29th, 2017 in order to begin negotiating the terms of the United Kingdom’s future relationship with the European Union. Although it is unknown what those terms will be, it is possible that there will be greater restrictions on imports and exports between the United Kingdom and European Union countries and increased regulatory complexities. These changes may adversely affect our operations and financial results. READ ALL D. IF VISION CORRECTION ALTERNATIVES TO PRESCRIPTION EYEGLASSES BECOME MORE WIDELY AVAILABLE, OR CONSUMER PREFERENCES FOR SUCH ALTERNATIVES INCREASE, OUR PROFITABILITY COULD SUFFER THROUGH A REDUCTION OF SALES OF OUR PRESCRIPTION EYEWEAR PRODUCTS, INCLUDING LENSES AND ACCESSORIES Our business could be negatively impacted by the availability and acceptance of vision correction alternatives to prescription eyeglasses, such as contact lenses and refractive optical surgery. Increased use of vision correction alternatives could result in decreased use of our prescription eyewear products, including a reduction of sales of lenses and accessories sold in our retail outlets, which could have a material adverse impact on our business, results of operations, financial condition and prospects. E. UNFORESEEN OR CATASTROPHIC LOSSES NOT COVERED BY INSURANCE COULD MATERIALLY ADVERSELY AFFECT OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION For certain risks, we do not maintain insurance coverage because of cost and/or availability. Because we retain some portion of our insurable risks, and in some cases self insure completely, unforeseen or catastrophic losses in excess of insured limits could materially adversely affect our results of operations and financial condition. LAST UPDATED: Mar 16 2018 COPYRIGHT ©2020 LUXOTTICA GROUP P.IVA 10182640150 / ALL RIGHTS RESERVED SUBJECT TO DIRECTION AND COORDINATION ACTIVITY BY ESSILORLUXOTTICA S.A. – 712 049 618 R.C.S. CRÉTEIL Facebook Twitter Linkedin Instagram Vimeo MAIN AREAS: ABOUT US ESSILORLUXOTTICA WEBSITE MUSEO DELL'OTTICA INVESTORS EYEWEAR BRANDS RETAIL BRANDS ONESIGHT GET IN TOUCH: CUSTOMER CARE CONTACT US FAQ REPORT FAKE CONFORMITY DECLARATION ABOUT OUR WEBSITE: SITE MAP PRIVACY STATEMENT COOKIES LEGAL TOOLS: DOWNLOAD AREA EVENTS MY ALERTS MY ALERTS BRAND GENERAL ARCHIVE 沪ICP备10214716号-9