|Società per azioni|
|Traded as||BIT: LUX, NYSE: LUX|
|Industry||Eyewear manufacturing, luxury, eyewear manufacturing and wholesale distribution, eyewear retailing|
|Products||Sunglasses, spectacle frames, prescription frames|
|Services||Opticians, optical retail, sun retail|
|Revenue||€8.837 billion (2015)|
|€1.376 billion (2015)|
|Total assets||€9.649 billion (2015)|
|Total equity||€5.418 billion (2015)|
Number of employees
|Divisions||Lenscrafters, OPSM, Sunglass Hut, Eyemed, Pearle Vision, Sears Optical, Target Optical, Glasses.com, Onesight.|
As a vertically integrated company, Luxottica designs, manufactures, distributes and retails its eyewear brands, including Lenscrafters, Sunglass Hut, Pearle Vision, Sears Optical, Target Optical, Eyemed vision care plan, and Glasses.com. Its best known brands are Ray-Ban, Persol, and Oakley.
Luxottica also makes sunglasses and prescription frames for 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 FTSE 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.
The company also acquired Oakley in a US$2.1 billion deal in November 2007, after Oakley tried to dispute their prices because of Luxottica's large marketshare, and Luxoticca responded by dropping Oakley from their stores thus causing their stock price to drop followed by Luxottica's hostile take over of the company and in August 2011 Erroca for €20 million.
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 7,200 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, United States (North America). Their retail banners include:
Luxottica had three charitable programs named Give the Gift Of Sight, Pearle Vision OneSight Foundation in North America, and the I-Care Community in Australia. These three programs were founded in 1988. Luxottica came to a decision to unite all three charitable programs into one global foundation and called it One Sight.
Medical managed care
Recent criticism has come upon the high prices of Luxottica's 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 such as Sunglass Hut and Oliver Peoples, as well as the optical departments at Target and Sears as well as key eye insurance groups.
In effect they have a monopoly on the optical industry and so overcharge for their products, quintupling the prices of Raybans after buying them out, for example. In addition, by owning the vision insurance company EyeMed, it controls a portion of the buyers' side of the market as well.
(Amounts in thousands of Euro)
|Year||Net sales (k€)||Operating 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 increased its share to 66% again.
- "Annual Report 2015" (PDF). Luxottica. Retrieved 29 April 2016.
- "Luxottica to Buy a U.S. Sunglasses Maker". in The New York Times June 21, 2007. 2007-06-21.
- Brett Arends, "Are Designer Sunglasses Worth the Price?", Wall Street Journal, July 22, 2010.
- Eyewear brands, May 1, 2015.
- "World's Billionaires Leonardo Del Vecchio". Forbes March, 2011.
- "Luxottica Past and Present". Luxottica Group S.p.A. Retrieved 2009-11-02.
- "Santander research" (PDF). Borsa Italiana 2003.
- "The Armani Group and the Luxottica Group announce expiration of licence agreement". in Pambianco News November 21, 2002.
- "Luxottica Group S.p.A.". NYSE, New York Stock Exchange.
- "Luxottica". Borsa Italiana.
- "Luxottica Group Added to MIB 30 Index" (PDF). Syndication Teleborsa 22, 2003.
- "Luxottica Facts and Figures". Luxottica Group S.p.A. Retrieved 2011-08-10.
- "Luxottica Group and Oakley complete merger" (PDF). Syndication Teleborsa, 2007.
- "Luxottica buys Erroca sunglasses chain for €20m". in Globes September 13, 2011.
- Google to De-Dorkify Glass in Partnership With Ray-Ban Maker Luxottica, Businessweek, March 25, 2014
- "Luxottica sets new co-CEO model, Guerra to leave, Cavatorta named CEO Corporate, interim CEO Markets". Vision Monday.
- "A management shake-up at Luxottica, Ray-Ban maker". The New York Times.
- "Luxottica announces the implementation of a new governance structure based on a co-CEO model". Luxottica.
- "Luxottica S.p.A". Bloomberg Businessweek. Retrieved 2011-08-10.
- "Luxottica Group S.p.A". in Reuters. Retrieved 2011-08-10.
- "Brands". Luxottica Group S.p.A. Retrieved 2016-04-29.
- "Annual Review 2014". Retrieved June 12, 2015.
- "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.
- "Forbes: There's More To Ray-Ban And Oakley Than Meets The Eye". Retrieved March 31, 2015.
- "Annual Report 2014" (PDF). Luxottica. Retrieved June 12, 2015.
- Turra, Alessandra (10 December 2013). "Luxottica Group to Settle Up With Italian Revenue Agency". WWD. Retrieved 10 December 2013.
- "Azionisti rilevanti di LUXOTTICA GROUP SPA". Commissione Nazionale per le Società e la Borsa. Retrieved 27 December 2014.
- Mesco, Manuela, "Delfin cuts Luxottica stake to 62.1% from 66%", MarketWatch, Sept. 6, 2012