The world’s largest eyewear maker, Luxottica Group SpA, has sets its sights on roping in Giorgio Armani to produce a designer line of luxury eyewear. Luxottica already has designer eyewear labels with several big brands such as Chanel, Prada, Burberry, Ralph Lauren and Tiffany & Co. Until now, Armani was beyond its reach because the Italian fashion house held a contract with smaller eyewear firm Safilo. The contract expires this year, which leaves the field open for Luxottica to court the coveted designer brand.
Irrespective of whether the deal happens or not, Luxottica is on a growth path. The company has reported a respectable increase in third quarter profits. Moreover, it is aggressively targeting newer markets such as Brazil and China.
Take a look at the figures. Luxottica witnessed a 9.1 percent increase in third quarter net profits, which rose to €111.2 million compared to €101.9 million a year ago. Sales increased by 4 percent in this quarter to €1.52 billion, up from €1.46 billion last year. Estimates suggest that Luxottica will see net profits of €105.3 million and sales of €1.5 billion.
According to Luxottica officials, the company’s premium and luxury eyewear experienced good growth rates. In the wholesale arena, the company saw a 10.7 percent rise in sales, even taking currency fluctuations into consideration.
In the meanwhile, the company is aggressively pursuing expansion plans in emerging markets, particularly Brazil and China. Plans are afoot to open 90 new stores in Brazil. In China, the firm is on track to having 500 stores within the next three years. The eyewear brand’s current count is 293.