As a vertically integrated company, Luxottica designs, manufactures, distributes and retails its eyewear brands, including LensCrafters, Sunglass Hut, Apex by 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.
In January 2017, Luxottica announced a merger with Essilor The combined entity would command more than one quarter of global value sales of eyewear. In March 2018, the European Commission unconditionally approved the merger of Essilor and Luxottica. On October 1, 2018 the new holding company EssilorLuxottica was born, resulting in combined market capitalization of approximately €57 billion.
|Luxottica Group S.p.A.|
|Listed società per azioni|
|Traded as||BIT: LUX|
FTSE MIB Component
|Industry||Eyewear manufacturing, luxury, eyewear manufacturing and wholesale distribution, eyewear retailing|
|Products||Sunglasses, spectacle frames, prescription frames|
|Services||Opticians, optical retail, sun retail|
|Revenue||€ 8.929 billion (2018)|
|€ 900 million (2018)|
|Total assets||€ 10.464 billion (2018)|
|Total equity||€ 6.306 billion (2018)|
Number of employees
|Divisions||Ray-Ban, Essilor, Persol, Oakley, LensCrafters, OPSM, Sunglass Hut, Apex by Sunglasshut, Eyemed, Pearle Vision, Sears Optical, Glasses.com, Onesight, Target Optical|
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 the United States 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 acquired Oakley in November 2007 for US$2.1 billion. Oakley had tried to dispute their prices because of Luxottica's large marketshare, and Luxottica responded by dropping Oakley from their stores, causing their stock price to drop, followed by Luxottica's hostile take over of the company. In August 2011, Luxottica acquired Erroca for €20 million. In March 2014, it was announced that Luxottica would partner with Google on the development of Google Glass and its integration into Luxottica's eyewear.
On 1 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). Cavatorta left the company 40 days after being appointed CEO. In 2016, it was reported that Luxottica had lost its third chief executive in a year and a half as Adil Mehboob-Khan stepped down a year after he replaced Cavatorta.
In January 2017, the company agreed on a merger with Essilor. The deal also offered a succession plan for Leonardo Del Vecchio, the company's founder. Shortly before the merger completed, reporter Sam Knight wrote in The Guardian, "in seven centuries of spectacles, there has never been anything like it. The new entity will be worth around $50bn (£37bn), sell close to a billion pairs of lenses and frames every year, and have a workforce of more than 140,000 people." On October 1, 2018 the new holding company EssilorLuxottica was founded, resulting in combined market capitalization of approximately €57 billion.
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 approximately 9,000 retail locations in the United States, Latin 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 the following:
John Lewis Opticians (in Partnership with John Lewis and Parthers department stores)
Luxottica is the largest optical retailer in the United States, with 7.3% of US retail sales in 2015. With its merger with Essilor in 2018 the company owns Coastal/Clearly, an online contacts and glasses retail giant bought in 2014 that ships to over 200 countries beside its original North American market.
The company has been criticised for the high price of its brand-name 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 (over a dozen) such as Ray-Ban and Oakley but also retailers such as Sunglass Hut and Oliver Peoples, the optical departments at Target and Sears, as well as key eye insurance groups including the second largest glasses insurance firm in the US. It has been accused of operating a complete monopoly on the optical industry and overcharging for its products—for example, temporarily dropping competitor Oakley from its frame design list, then, when the company stock crashed, purchasing the company, then increasing the prices of its Ray-Ban sunglasses. In addition, it has been argued that, by owning the vision insurance company EyeMed, it also controls part of the buyers' market as well.
The company has said that the market is highly competitive, and that their frames account for ~10% of sales worldwide and ~20% in the United States. Euromonitor International estimated that Luxottica's market share was 14% worldwide, with the second-largest company in the industry, Essilor, holding a 13% market share. The third-largest player was Johnson & Johnson, with a 3.9% market share. In October 2018, Luxottica and Essilor merged into a single company, EssilorLuxottica, which now occupies nearly 30% of the global market share and represents almost a billion pairs of lenses and frames sold annually.
In 2019, LensCrafters founder E. Dean Butler spoke to the Los Angeles Times, admitting that Luxottica's dominance of the eyewear industry had resulted in price markups of nearly 1,000%. In the interview, Butler noted "You can get amazingly good frames, with a Warby Parker level of quality, for $4 to $8. For $15, you can get designer-quality frames, like what you’d get from Prada.” When told that some eyeglasses cost as much as $800 in the United States, Butler remarked, “I know. It’s ridiculous. It’s a complete rip-off.”
The list of Luxottica shareholders with more than 2% of holdings, represented by voting shares at 23 December 2014.
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.
Agordo (Local Ladin: Agort, Ladin: Ègort, German: Augarten) is a town and comune (municipality) sited in the Province of Belluno, in the Veneto region in Italy. It is located about 100 kilometres (62 miles) north of Venice and about 20 kilometres (12 miles) northwest of Belluno.
Agordo was the headquarters of Luxottica Group S.p.A., the world's biggest eyewear company, before it was moved to Milan.Alain Mikli
Alain Mikli (born Alain Miklitarian, 1 April 1955) is a French-Armenian designer of high-end handmade eyeglasses and accessories. Mikli's line features unique colors and shapes, and are a favorite among European celebrities and avant-garde Americans. Mikli claims his use of color is inspired by his Lebanese Armenian heritage.
In 1978, Mikli opened his design studio in Paris. By 1983, celebrities like Elton John helped bring the line recognition by wearing and touting Mikli products. Kanye West wore Alain Mikli sunglasses in his music video, Stronger, which he specifically requested from the designer. This style of sunglasses has become a wide phenomenon, usually being referred to as "shutter shades". As of 2000, Mikli's firm employed 220 people with sales of approx. FF220 million. Around 500,000 pairs of Mikli glasses have been sold worldwide.
On 23 January 2013 Alain Mikli International was bought by Italian eyewear giant Luxottica for around 90 million euros.Andrea Guerra (businessman)
Andrea Guerra (born 26 May 1965) is an Italian businessman.
Guerra was CEO of Luxottica from July 2004 to August 2014. Before that, he worked for ten years in Merloni Elettrodomestici, now Indesit Company, rising to managing director. Since October 2016, he has been executive chairman of Eataly.Bright Eyes Sunglasses
Bright Eyes Sunglasses is a company that was established in Cairns, Queensland, Australia, by Robert and Antonina (Ann) Johnstone, in 1985. By 1995, the chain included 115 stores. In 1997 the franchise was sold to Ian Thomas, a Cairns property developer. Ian Thomas reduced the stores from 112 to 85 removing the unprofitable stores strengthening the brand and growing the gross profit of the group by 50%.In 2000, Bright Eyes was sold to a consortium of three businessmen: Geoff Harbert, Graham Bradshaw, and Ralph Edwards. By 2003, 10 franchise stores and 19 company-owned stores. The full chain's 2003 turnover reached A$6.7 million. Harbert stated in 2004 that some stores were expanding their product lines, in order to remain profitable.The company having grown to 155 stores, 1/3 of which company run, eventually came under the control of Oakley, Inc., which was itself purchased by Luxottica in 2007, transferring ownership of the chain to Luxottica. The takeover resulted in Luxottica becoming "by far the biggest eyewear chain in Australia."In 2008 Luxottica having reduced the business to 47 stores, sold the business back to business partners Ralph Edwards and Geoff Harbert.Casual Corner
Casual Corner was an American retail clothing chain founded in 1950. It operated stores under the names Casual Corner, Petite Sophisticate and August Max Woman brands among others. Casual Corner operated more than 525 stores at its peak.Designer label
The term designer label refers for clothing, luxury automobile manufacturers and other personal accessory items sold under an often prestigious marque which is commonly named after a designer, founder or location where the company was founded such as BMW. The term is most often applied to luxury goods. While members of the upper middle class, or the mass affluent, are perhaps the most commonly targeted customers of these designer labels, some marquees—such as Cartier, Rolex, Montblanc and the haute couture — tend to a wealthier customer base. But almost every designer brand has merchandise that middle-class wouldn't normally be able to afford such as exotic skins, furs and hides, limited edition pieces, or things simply priced higher. Designer Label companies use their smaller and cheaper merchandise, aimed at the middle class, such as wallets, fashion jewellery, key-rings and small accessories, to make the majority of their income, whilst the more expensive pieces such as haute couture, high jewellery, hand-bags, shoes and even furnishings are usually reserved for the wealthier upper-class clientele.A lot of big designer labels focus on haute couture and marketing while licensing the production of their cheaper merchandise to others. In the eyewear industry for example brands like Burberry, Chanel, Armani and Prada license their brand names to market leaders like Luxottica.Many department stores themselves may be considered designer labels, such as Neiman Marcus, Harrods, David Jones and Daimaru.
Designer labels are not only restricted to the fashion design industry. Many car and motorcycle companies such as Rolls Royce, Harley Davidson and Mercedes Benz are regarded as designer labels. These companies make their vehicles to a higher standard than the average manufacturers and many other attributes such leather used in the upholstery, woodwork and paneling, high levels of technology, extra safety and speed are employed to make for a better product. These vehicles are also in high demand all over the world, and waiting lists may be applied to some models such as the Rolls Royce Phantom and the Bugatti Veyron.
Many people consider designer labels to be a status symbol.
Some research indicates that products with designer labels on them are perceived as higher in quality and fashionability than the same products without designer labels. Other studys show evidence that brand names do influence consumers perception of price but not of quality of the products.The relationship between consumer products and social status is highly debated.Essilor
Essilor International S.A. is a French-based international ophthalmic optics company that designs, manufactures and markets lenses to correct or protect eyesight. Its headquarters is based in Charenton-le-Pont (near Paris), France. Essilor is quoted on the Euronext Paris Stock Exchange. It is a component of the Euro Stoxx 50 share index.
Essilor is responsible for creating Varilux, the world's first progressive lens which corrects presbyopia and allows clear vision in the wearer's near, intermediate and far vision. The company formed from the merger of ophthalmic firms Essel and Silor in 1972. Its activities are largely focused on research and development. It is the world's largest manufacturer of ophthalmic lenses.In January 2017 Essilor announced a combination with Italian eyewear giant Luxottica. On 1 October 2018, the new holding company EssilorLuxottica was born, resulting in combined market capitalization of approximately €57 billion.LensCrafters
LensCrafters is an international retailer of prescription eyewear and prescription sunglasses. Its stores usually host independent optometrists on-site or in an adjacent store. The company has its corporate headquarters in Mason, Ohio, a suburb of Cincinnati.
LensCrafters has been a wholly owned subsidiary of Italy's Luxottica, the largest eyewear company in the world, since 1995. At the end of 2018, Luxottica operated 1,158 LensCrafters stores, of which 1,050 are located in North America and 108 are located in China and Hong Kong.Leonardo Del Vecchio
Leonardo Del Vecchio (born 22 May 1935) is an Italian billionaire businessman, the founder and chairman of Luxottica,. the world's largest producer and retailer of glasses and lenses, with 77,734 employees and over 7,000 stores. As of January 2018, Del Vecchio was estimated by Forbes to have a net worth of $21.9 billion, making him the second richest man in Italy, and the 47th richest in the world.List of Italians by net worth
The list of the wealthiest of Italy is a list extracted from that published by United States Forbes, which brings together the richest men every year.OPSM
OPSM (Optical Prescription Spectacle Makers) is a retailer of eye glasses in Australia and New Zealand, with locations in Hong Kong, Singapore, and Malaysia as well. The company was founded in Sydney in 1932, and publicly listed in 1953. Italian eyewear giant Luxottica acquired a controlling interest in 2003. At that time the company operated 461 stores under three brands (OPSM, Laubman & Pank, Budget Eyewear) in Australia, 35 stores in New Zealand (where they were market leader), 75 stores in Hong Kong and 12 in Singapore (under the Optical Shop brand), and 12 in Malaysia. Recently, OPSM opened a flagship store in Hawthorn, Victoria called 'Eyehub', bridging the gap between optometry and ophthalmology.
In July 2003, the Italian Luxottica Group purchased all OPSM shares and in February 2005 it delisted OPSM Group shares from the Australian Stock Exchange.OPSM operates 400 stores in Australia and New Zealand.Oakley, Inc.
Oakley, Inc., based in Lake Forest, California, and a subsidiary of Italian corporate giant Luxottica based in Milan, designs, develops and manufactures sports performance equipment and lifestyle pieces including sunglasses, sports visors, ski/snowboard goggles, watches, apparel, backpacks, shoes, optical frames, and other accessories. Most items are designed in house at their head office, but some countries hold exclusive designs relevant to their market. Oakley currently holds more than 600 patents for eyewear, materials, and performance gear.Oliver Peoples
Oliver Peoples is an American luxury eyewear brand established in 1987, and owned by Luxottica. The brand is sold in Oliver Peoples boutiques, online, and at fashion boutiques and department stores throughout the world. Oliver Peoples eyewear is designed in Los Angeles and manufactured in Italy and Japan.Pearle Vision
Pearle Vision is an American chain of eye care stores. It was founded in 1961 by Stanley Pearle, an optometrist in Savannah, Georgia, United States. In 1971, Pearle purchased a 17-store optical chain owned by Robert Hillman and Larry Kohan; together, Hillman and Kohan stayed on and helped expanded Pearle Vision nationwide.Stanley Pearle sold his stores to the United Kingdom conglomerate Grand Metropolitan in 1985. Grand Met expanded Pearle Vision to more than 1,000 locations worldwide by 1990, but profits became elusive. In 1996, Grand Met sold the Pearle stores in the United States, Canada and Puerto Rico to Cole National Corporation, which operated optical departments inside such retail stores as Sears, BJ's Wholesale Club and Target. In 1997 Cole National bought the 150-store NuVision chain in Michigan and converted them to the Pearle Vision name. The Belgian stores were sold to GIB in Belgium and the Dutch stores to HAL Investments in the Netherlands. HAL Investments bought the Belgian stores 1 year later from GIB and merged both chains into Pearle Benelux.
Luxottica, owner of LensCrafters, purchased Cole National in 2004, a deal that brought together the two largest eyewear retailers in the United States.The Pearle chain of opticians in Europe is now part of Grandvision and has more than 1000 branches in 43 countries including the Netherlands (pearle.nl), Belgium, Germany (Apollo-Optik), Austria (pearle.at), Poland, Portugal, Italy, Finland and Estonia. For more than 40 years the company has been selling branded products and products under its own brand name.
The first Pearle Optical store in the Middle East opened in Marina Mall, Kuwait, on January 15, 2003, and currently operates 18 stores in the Middle East: 4 in Kuwait, 10 in KSA, 3 in UAE, 5 in Egypt and 1 in Qatar.
Notably, Pearle Vision has repeatedly experienced difficulty operating successfully in California. Its traditional business model directly conflicts with California's strong consumer protection statutes which are designed to prevent the obvious conflict of interest that arises when an optometrist and an optician practice side-by-side in the same business (one can prescribe more eyewear to be made by the other, thus inflating the overall profits of the business). On June 12, 2006, the Supreme Court of California ruled that Pearle Vision could not escape the reach of those statutes, and Pearle Vision's attempts to find a loophole through the Knox-Keene Health Care Service Plan Act of 1975 were unavailing.Stanley Pearle died on July 21, 2011. He is survived by three children, 10 grandchildren and 11 great‐grandchildren.Persol
Persol is an Italian luxury eyewear brand specializing in the manufacturing of sunglasses and optical frames. It is one of the oldest eyewear companies in the world and is owned by the Luxottica group. The name is derived from the Italian per il sole, meaning "for the sun". Formed in 1917 by Giuseppe Ratti, Persol originally catered to pilots and sports drivers. Presently, the company markets durable sports sunglasses. The company trademark is a silver arrow.Ray-Ban
Ray-Ban is an American brand of sunglasses and eyeglasses created in 1936 by the American company Bausch & Lomb. The brand is known for their Wayfarer and Aviator lines of sunglasses. In 1999, Bausch & Lomb sold the brand to the Italian eyewear conglomerate, Luxottica Group, for a reported US $640 million.Ray-Ban Wayfarer
Ray-Ban Wayfarer sunglasses have been manufactured by Ray-Ban since 1956, which in turn has belonged to the Italian Luxottica Group since 1999. Wayfarers enjoyed early popularity in the 1950s and 1960s, returning to popularity again after a 1982 product placement. A second revival occurred in the mid-2000s.Sunglass Hut
Sunglass Hut is an international retailer of sunglasses and sunglass accessories founded in Miami, Florida, United States, in 1971. Sunglass Hut is part of the Italian-based Luxottica Group, the world’s largest eyewear company.
As of December 31, 2008, the Luxottica Group operated 2,286 stores worldwide, most of those as part of the Sunglass Hut brand.Sunglass Hut stores are located in the United States, Mexico, Canada, the Caribbean, Brazil, continental Europe, the United Kingdom, Australia, New Zealand, Hong Kong, Singapore, South Africa, the Middle East including Israel, and India.Target Optical
Target Optical is an optical company located inside Target stores across the United States. Target Optical was founded by the Cole National Corp in 1995 in Cleveland, Ohio. In 2004 the Cole National corporation was acquired by Luxottica S.p.A., this included other Cole National holdings like Pearle Vision. Luxottica folded Cole's operations into its North American Retail Group and the Cole structure was dissolved. Target Optical headquarters is located in the North American Retail Groups headquarters in Mason, Ohio.
FTSE MIB companies of Italy