LensCrafters 2005 Annual Report Download - page 9

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>8| ANNUAL REPORT 2005
Luxottica Group is the world’s leading designer, manufacturer and distributor of prescription frames and
sunglasses in the premium and luxury segments. Its distribution network covers all of the world’s key
markets both wholesale and retail. In the retail business, the Group enjoys the largest and most efficient
network in the industry, with approximately 5,700 sun and optical stores worldwide. The Group is the
leading player in the retail market in North America with LensCrafters, Pearle Vision and Sunglass Hut
and in Australia and New Zealand with OPSM, Laubman & Pank and Sunglass Hut. Luxottica Group is
also the leader in premium and luxury optical retail in China and Hong Kong, with 276 stores. Luxottica
Group’s wholesale distribution network covers 130 countries, with direct operations in the world’s 38
most important eyewear markets. The Group’s brand portfolio currently includes a total of 26 brands
(eight house brands and 18 license brands). Luxottica Group’s house brands include Ray-Ban, the
world’s best known prescription and sun brand, as well as Vogue, Persol, Arnette and Revo. License
brands include Bvlgari, Chanel, Dolce & Gabbana, Donna Karan, Prada, Versace as well as Burberry
and Polo Ralph Lauren (the latter two from January 2006 and 2007, respectively). The Group’s products
are designed and manufactured in six production facilities in Italy and two wholly-owned plants in China
(the second started operating in early 2006).
Over the years, Luxottica Group has achieved global leadership in the eyewear industry thanks to its:
• vertically integrated design-production-distribution model, both wholesale and retail, which is unique
in the sector;
• wide-reaching wholesale and retail distribution network, which maximizes the Group’s capacity to
serve the market and keep distribution costs and times under tight control;
• brand portfolio, which is one of the strongest and most balanced in the industry;
• high, and continuously improving, product quality;
• production efficiency and flexibility, enabling it to rapidly address changes in the market;
• strong focus on pre- and post-sales services.
MILESTONES IN LUXOTTICA GROUP’S HISTORY
1961 Starts out as a manufacturer of optical frames.
1990 Listing on the New York Stock Exchange (NYSE).
1995 Acquisition of LensCrafters, the leading premium optical retail brand in North America.
1999 Acquisition of the eyewear division of Bausch & Lomb, comprising such brands as Ray-Ban,
Revo, Arnette and Killer Loop.
2000 Listing on the Italian Stock Exchange (MTA).
2001 Acquisition of Sunglass Hut, the world’s leading premium specialty sun retailer.
2003 Acquisition of OPSM Group, the leading optical store chain operator in Asia-Pacific.
2004 Acquisition of Cole National, the second largest optical store operator in North America, with
retail brands such as Pearle Vision, Sears Optical, Target Optical and BJ’s Optical.
2005 Entry into the Chinese optical retail market through the acquisition of two retail brands. The
Group becomes the leading player in the premium and luxury segment, with a total of 276
stores in Beijing, Guangdong and Hong Kong.
PROFILE
OF LUXOTTICA
GROUP
NET SALES
BY GEOGRAPHICAL
AREA
70%
20%
10%
North America
Rest of the world
Asia-Pacific
NET SALES
BY DISTRIBUTION
75%
25%
Retail
Wholesale