MILAN—Key executives of Luxottica Group (NYSE: LUX) said today the company is continuing to invest in growth in both its retail and wholesale divisions despite a tough worldwide economic climate that depressed its retail sales by 9.1 percent and its net income by 14.2 percent in this year’s second quarter, although the company’s wholesale division posted a 21.9 percent increase in Q2.

Chief executive officer Andrea Guerra identified “two obvious challenges” Luxottica is facing this year: “the continuing devaluation of all major currencies to the Euro,” and “a tougher market scenario, especially in the U.S.” He said the unstable environment makes it important to stick to the company’s core strategies of profitable growth, vertical integration and a diversified business model.

“Profitwise, we are confident the headwind we’ve experienced is now over,” Guerra declared during a conference call with financial analysts today. The company reported a 14.2 percent decrease in net income, to €132.6 million, for Q2 (in U.S. dollars, net income for the period was $207.1 million, down 0.6 percent).

Luxottica’s overall sales, on the other hand, increased by 2.1 percent in the quarter (up 12.6 percent at constant currency rates) to €1,354.4 million, and were up 18.3 percent—to $2,115.9 million—in U.S. dollars. The company’s wholesale division posted a 21.9 percent increase (up 28.3 percent at constant currency rates) to €583.4 million, while retail sales fell by 9.1 percent (but were up 3.8 percent at constant currency rates) to €771.1 million.

Luxottica’s overall comparable-store sales fell by 2.9 percent in the period. Comp-store sales were down 4.5 percent in Q2 in its LensCrafters and Pearle chains, down 1.7 percent in Luxottica’s Licensed Brands leased eyewear departments and down 3 percent at Sunglass Hut.

On the retail side, Guerra and Kerry Bradley, chief operating officer of Luxottica Retail, pointed to moves to implement lower opening price points at the company’s LensCrafters and Sunglass Hut stores as one way of combating economic woes in the U.S.; the company also is continuing investments in sales training, according to Bradley. On the other hand, the new upscale Ilori sunwear chain, with 11 locations open as of June 30, has been doing well, with an average sales price double that of Sunglass Hut, said Bradley. About nine more Ilori stores will be open by year-end, with as many as 100 units planned for the fledgling chain over the next two years.

The recent addition of Oakley ophthalmic and sunwear collections to LensCrafters and Sunglass Hut has also boosted sales, he noted.

As for Luxottica’s wholesale business, Guerra acknowledged some weakness in sales of luxury brands in Q2, counterbalanced by strength in the Oakley and Ray-Ban collections, which he described as “growing fast and attracting two different consumers.” Guerra added, “Oakley and Ray-Ban will be captains of our growth across the world.”

In large part because of the Oakley acquisition late last year, Luxottica’s wholesale volume represented 43 percent of the group’s consolidated sales in this year’s second quarter, vs. just 36 percent in 2007’s Q2.

Looking ahead, Luxottica will host buying events for both large and independent worldwide customers during the second half to boost year-end sales, and is ramping up distribution of the Chanel La Perle ophthalmic and sun collection, launched last month, to be ready for this year’s holiday selling season. Guerra also said the company will “restructure its relationships” with two licensors at the end of this year, and will not renew a third, regional license for 2009; he would not identify those licensors.