Reuters logo
Luxottica expects to sign $100-mil eyewear licence
February 28, 2014 / 2:40 PM / 4 years ago

Luxottica expects to sign $100-mil eyewear licence

* Company aims to sign new licence to start Jan. 2015
    * Confident that growth and acquisitions will continue - CEO
    * Q4 net profit missed estimates on one-off tax provision

    MILAN, Feb 28 (Reuters) - Ray Ban sunglasses maker Luxottica
 expects to sign a new eyewear licence worth at least
$100 million in sales starting next year, its chief executive
said on Friday.
    "We will strengthen the licence portfolio in the next weeks
or months...the new licence that probably will come on board
will start in January 2015," Andrea Guerra said. 
    "The licence is at least 100 million dollars," Guerra said
at an investor day in Milan broadcast on the group's website.
    He did not say with whom the licence agreement would be.
    Luxottica generates most of its sales from its own brands
including Ray Ban and Oakley, and also makes and distributes
eyewear under licence for fashion labels Chanel and Armani. 
    Guerra told Reuters on Thursday the group expects to make at
least 160 million euros from the Armani licence in 2014.
    Asked about possible acquisitions by an attendee at the
investor day, Guerra said: "We are pretty confident that our
combination of organic growth and acquisitions will continue."
    The company bought U.S. online optical showroom
earlier this year. An analyst suggested it might now be looking
to acquire Hawaii-based sunglasses maker Maui Jim or Danish
eyewear manufacturer Lindberg.
    On Thursday, Luxottica posted fourth-quarter net profit that
missed analyst expectations, due to a tax provision on transfer
pricing, but full-year revenue was in line with expectations and
analysts were sanguine about the results.
    "Although such a miss might result in some profit taking, it
has no impact on our Luxottica 2014 estimates and valuation,"
Citi analysts wrote in a note, reiterating the "Buy" rating on
the stock with a 45 euro target price.
    Shares fell 2.3 percent on Milan's bourse early on Friday
but recovered losses to be quoted just 0.4 percent lower on the
day at 1434 GMT, changing hands for 40.04 euros.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below