|Type||Società per azioni|
|Traded as||BIT: LUX, NYSE: LUX|
|Industry||Eyewear, fashion, luxury, manufacturing, retail, wholesale distribution|
|Founded||Agordo, Italy, in 1961|
|Key people||Leonardo Del Vecchio (Founder and Chairman), Andrea Guerra (CEO)|
|Products||Sunglasses, spectacle frames, prescription frames|
|Services||Opticians, optical retail, sun retail|
|Revenue||€7,086 million (2012)|
|Operating income||€982 million (2012)|
|Total assets||€8,421 million (2012)|
|Total equity||€3,993 million (2012)|
Luxottica Group S.p.A. is the world's largest eyewear company, controlling over 80% of the world's major eyewear brands. Its best known brands are Ray-Ban and Persol. It also makes sunglasses and prescription frames for a multitude of designer brands such as Chanel and Prada, whose designs and trademarks are used under license. Luxottica also makes sunglasses branded Giorgio Armani, Burberry, Stella McCartney, Versace, Vogue, Miu Miu, Tory Burch, and Donna Karan. Its prime competitor is the Safilo Group S.p.A.
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 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.
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, Israel, the United Kingdom, and United Arab Emirates. The headquarters of the retail division is in Mason, Ohio. 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 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 claimed Luxottica did indeed have competitors at the retail level in the American market, such as Walmart, Costco, and Warby Parker.
(see subsections above, Brand and Retail for a more comprehensive listing of Luxottica subsidiaries)
|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
• Delfin S.a.r.l. 66.16%
• Giorgio Armani 4.85%
• Treasury Shares 1%
• Other shareholders < 2% 28%
In September 2012, Delfin S.a.r.l. reduced its share of Luxottica from 66% to 62.1%.
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- Brett Arends, "Are Designer Sunglasses Worth the Price?", Wall Street Journal, July 22, 2010.
- "World's Billionaires Leonardo Del Vecchio". Forbes March, 2011.
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- "Santander research". Borsa Italiana 2003.
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- "Luxottica Facts and Figures". Luxottica Group S.p.A. Retrieved 2011-08-10.
- "Luxottica Group and Oakley complete merger". Syndication Teleborsa, 2007.
- "Luxottica buys Erroca sunglasses chain for €20m". in Globes September 13, 2011.
- "Luxottica S.p.A". Bloomberg Businessweek. Retrieved 2011-08-10.
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- "Armani Group and Luxottica sign exclusive license agreement" (Press release). Luxottica. June 8, 2012. Retrieved February 16, 2013.
- "Versus". License Brands. Luxottica. Retrieved February 16, 2013.
- "Our Position in the Industry". EyeMed Vision Care. Retrieved 2011-08-10.
- "Activities: Managed Vision Care", Luxottica website
- "Sticker shock: Why are glasses so expensive?". 60 Minutes (CBS News). October 7, 2012. Retrieved October 19, 2012.
- Turra, Alessandra (10 December 2013). "Luxottica Group to Settle Up With Italian Revenue Agency". WWD. Retrieved 10 December 2013.
- "Major Shareholders", Luxottica website
- "Luxottica". Borsa Italiana.
- Mesco, Manuela, "Delfin cuts Luxottica stake to 62.1% from 66%", MarketWatch, Sept. 6, 2012