||This article contains content that is written like an advertisement. (July 2015)|
|Società per azioni|
|Traded as||BIT: LUX, NYSE: LUX|
|Industry||Eyewear manufacturing, ], luxury, eyewear manufacturing and wholesale distribution, eyewear retailing|
|Founded||Agordo, Italy, in 1961|
|Products||Sunglasses, spectacle frames, prescription frames|
|Services||Opticians, optical retail, sun retail|
|Revenue||€7.652 billion (2014)|
|€1.158 billion (2014)|
|Total assets||€9.594 billion (2014)|
|Total equity||€4.928 billion (2014)|
Number of employees
|Divisions||Eyemed, Lenscrafters, Pearle Vision, Sears Optical, Target Optical, Sunglass Hut, Glasses.com, Onesight|
Luxottica Group S.p.A., an Italian company, is the world's largest eyewear company,  and is a vertically integrated designer, manufacturer, distributor and retailer of eyewear. Luxottica is the owner of 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 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 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.
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:
Luxottica had three charitable programs named Give the Gift Of Sight, Pearle Vision 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 OneSight. Cincinnati, Ohio and Milan, Italy launched this foundation in December 12, 2008 bringing this new foundation 20 years of experience. "OneSight, a Luxottica Group Foundation and a nonprofit corporation, is a family of charitable vision programs dedicated to improving vision through outreach, research, and education." This charity helps the less fortunate by providing free eye exams along with free eyewear. These charitable programs has helped about 8.5 million people in 40 countries since 1988. Luxottica brings together affiliated and independent doctors, employees, vendors, and donors to volunteer their time using their expertise providing services, the opportunity of volunteering is not available to the public. OneSight is able to achieve giving the gift of sight to the less fortunate through four program areas: Global Eye Care, Regional Eye Care, Community Eye Care, and Preventative Eye Care.
Global Eye Care
OneSight conducts clinics in developing countries. Doctors provide free eye exams, then volunteer employees provide recycled and new manufactured eyewear.
Regional Eye Care
Volunteers join local charitable partners to provide free eye exams and eyewear in their home country across North America and Australia.
Community Eye Care
Local volunteers will help the less fortunate through retail and outreach programs.
Preventative Eye Care
OneSight Research Foundation provide research grants to find treatments and cures for threatening vision disorders and diseases.
In 1995, OneSight launched a new technique to help the less fortunate called SeeMore. It is a "vision van" which brings services to the less fortunate who are not able to travel. The vision van travels to schools to provide eye exams and eyewear to the kids. In 2004, the vision van helped 6,155 people affected by Hurricane Katrina in Louisiana and Texas.
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.
(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.
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