|Società per azioni|
|Traded as||BIT: LUX, NYSE: LUX|
|Industry||Eyewear, fashion, luxury, manufacturing, retail, wholesale distribution|
|Founded||Agordo, Italy, in 1961|
|Leonardo Del Vecchio (Founder and Chairman), Massimo Vian and Adil Mehboob-Khan (co-CEOs)|
|Products||Sunglasses, spectacle frames, prescription frames|
|Services||Opticians, optical retail, sun retail|
|Revenue||€7,652 million (2014)|
|€1,158 million (2014)|
|Total assets||€9,594 million (2014)|
|Total equity||€4,928 million (2014)|
Number of employees
|Divisions||Eyemed, Lenscrafters, Pearle Vision, Sears Optical, Target Optical, Sunglass Hut, Ilori-Optical Shops of Aspen, David Clulow, GMO, Laubman & Pank, OPSM, Glasses.com, Onesight|
Luxottica Group S.p.A. is an Italian eyewear company. It is the world's largest eyewear company, controlling over 80% of the world's major eyewear brands. Luxottica is the owner of Lenscrafters, Pearle Vision, Sears Optical, Target Optical, Eyemed vision care plan, and Glasses.com. Its more well-known brands are Ray-Ban, Persol, and Oakley. Luxottica also makes sunglasses and prescription frames for a multitude of designer brands such as Chanel, Prada, Giorgio Armani, Burberry, Versace, Dolce and Gabbana, Miu Miu, Donna Karan, Stella McCartney, and Tory Burch.
Del Vecchio began his career as the apprentice to a tool and die maker in Milan, but decided to turn his metalworking skills to making spectacle parts. So in 1961, he moved to Agordo in the province of Belluno, which is home to most of the Italian eyewear industry. The new company was Luxottica s.a.s., a limited partnership with Del Vecchio as one of the founding partners. In 1967, he started selling complete eyeglass frames under the Luxottica brand, which proved successful enough that by 1971 he ended the contract manufacturing business.
Convinced of the need for vertical integration, in 1974, he acquired Scarrone, a distribution company. In 1981 the company set up its first international subsidiary, in Germany, the first in a rapid period of international expansion. The first of many licensing deals with a designer was struck with Armani, in 1988.
The company listed in New York in 1990, and in Milan in December 2000, joining the MIB-30 (now S&P/MIB) index in September 2003. The listing raised money for the company and allowed it to use its shares to acquire other brands, starting with Italian brand Vogue Eyewear in 1990, Persol and US Shoe Corporation (LensCrafters) in 1995, Ray-Ban in 1999 and Sunglass Hut, Inc. in 2001. Luxottica later increased its presence in the retail sector by acquiring Sydney-based OPSM in 2003, Pearle Vision and Cole National in 2004.
On the 1st September 2014, a new organizational structure was announced, composed of two co-CEOs, one focusing on market development and the other overseeing corporate functions. After the exit of former CEO Andrea Guerra, Enrico Cavatorta was appointed CEO of Corporate Function and Interim CEO of Market (until new and permanent appointment to this role).
Luxottica's two main product offerings are sunglasses and prescription frames. The company operates in two sectors: manufacturing & wholesale distribution, and retail distribution.
Luxottica Retail has more than 7,000 retail locations in the United States, South America, Canada, China, Australia, New Zealand, South Africa, the United Kingdom, and United Arab Emirates. The headquarters of the retail division is in Mason, Ohio (North America). Their retail banners include:
Medical managed care
Recent criticism has come upon the high prices of Luxottica's luxury brand named glasses, such as Ray-Ban, Oakley, and several others. A 2012 60 Minutes segment focused on whether the company's extensive holdings in the industry were used to keep prices high. Luxottica owns not only a large portfolio of brands such as Ray-Ban and Oakley, but also retailers like Sunglass Hut and Oliver Peoples, as well as the optical departments at Target and Sears. In addition, by owning the vision insurance company EyeMed, it controlled a portion of the buyers' side of the market as well. CEO Guerra said that Luxottica did have competitors at the retail level in the American market, such as Walmart, and Costco.
|Year||Net sales (K€)||Operative income (K€)||Net income (K€) - Net Income attributable to Luxottica Group Stockholders|
data retrieved from Luxottica website
Transfer pricing issues
The list of Luxottica shareholders with more than 2% of holdings, represented by voting shares at 23 December 2014.
- Delfin S.a.r.l. 66.485%
- Deutsche Bank Trust Company Americas (as ADR depository) 7.466%
- Giorgio Armani 4.955%
In September 2012, Delfin S.a.r.l. reduced its share of Luxottica from 66% to 62.1%, but later increase its share to 66% again.
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- "Sticker shock: Why are glasses so expensive?". 60 Minutes (CBS News). October 7, 2012. Retrieved October 19, 2012.
- "Forbes: There's More To Ray-Ban And Oakley Than Meets The Eye". Retrieved March 31, 2015.
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- Mesco, Manuela, "Delfin cuts Luxottica stake to 62.1% from 66%", MarketWatch, Sept. 6, 2012