MILAN—Luxottica Group (NYSE: LUX) revealed a new structure for its Luxottica Retail chains' operations today, while announcing that its North American retail comparable-store sales dropped by 3 percent in the first quarter. The company also announced a new mall-based "active performance" retail concept targeting the "active lifestyle customer," to launch next month.

In addition, Luxottica Retail is initiating new package pricing at its flagship LensCrafters stores as part of a strategy to "drive sales and market share and attract premium customers."

In the quarter, the group's consolidated sales increased by 7.7 percent (up 16.6 percent at constant currency rates) to 1,398.7 million Euros. The company's overall retail sales fell 6.5 percent (but rose 4.8 percent at constant currency rates) in Q1, to 779.1 million Euros; wholesale revenues rose 32.9 percent (up 37.6 percent at constant currency rates) to 619.6 million Euros.

The company's net income for the period fell 19.1 percent, to 103.7 million Euros.

In a presentation as part of chief executive officer Andrea Guerra's Q1 conference call with financial analysts, the company revealed what it called "a new leadership structure" for Luxottica Retail, with new brand general managers appointed for Luxottica's retail brands. The presentation noted new, "100 percent brand-centric product, marketing and operations teams."

Luxottica's retail chains saw comp-store declines in each segment: LensCrafters and Pearle Vision together had a 3.1 percent drop in comp sales; the company's Licensed Brands operations' comps fell by 8.4 percent. Even Sunglass Hut, which has had stronger comp-sales increases than Luxottica Retail's ophthalmic chains in recent quarters, saw its comps fall by 1.8 percent in Q1. (By comparison, the newly acquired Oakley O stores had a 19.5 percent increase in comp-sales in the period.)

The presentation indicated the company had seen some customer erosion at the lower end, while retailing its premium customers and "high average transaction value."

Luxottica said it hopes to strengthen its entry-level merchandise offering going forward with new under-$100 product in Sunglass Hut in the Oakley, Ray-Ban and Ralph collections. In addition, LensCrafters will offer a new $119 complete eyeglass pair and a $139 Rx sunwear package.

In an effort to improve business conditions in the second half of this year, Luxottica is postponing some capital expenditures and new store openings previously scheduled for that period. According to Kerry Bradley, Luxottica Retail's chief operating officer, the company will open just 100 new stores this year, down from an original projection of 150 new locations in 2008; last year, Luxottica Retail opened 400 new stores, Bradley said. In addition, a contingency plan has already been implemented to lower costs, streamline processes and maintain quality and service.

"While there is clearly a market slowdown, the severe market fluctuations appear to have been stabilized," Guerra said. "We have been able to plan and react to these new conditions. We have been engaged in an important cost-control plan, the purpose of which is to enhance efficiency. This plan allows us to view our prospects for future quarters positively."