LensCrafters 2008 Annual Report Download - page 43

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EVENTS IN 2009
In January 2009, Luxottica Group entered into two agreements that further strengthen its licensed brand
portfolio.
On January 28, 2009, the Company entered into a new licensing agreement to design, manufacture and
globally distribute sun and prescription eyewear collections by Tory Burch and TT, two emerging American
fashion and lifestyle brands. The agreement with Tory Burch LLC will run for six years - renewable for a
further four - and envisages the launch of the first collection in 2009.
The new collections will be distributed not only by Tory Burch boutiques and premium American
department stores but also in select independent optical stores and in Luxottica’s retail chains. After North
America, distribution will be extended to Europe and the rest of the world. Tory Burch, a highly
appreciated brand in the affordable luxury category, completes Luxottica’s brand portfolio by further
strengthening its positioning in the key North American market and in the continually expanding
department store channel.
On January 30, 2009, Luxottica Group and Salvatore Ferragamo Italia S.p.A., which controls Gruppo
Ferragamo, agreed to a three-year extension of their licensing agreement covering design, manufacturing
and global distribution of prescription and sun eyewear under the Salvatore Ferragamo label. This renewal
of an agreement originally signed in 1998 is an ultimate endorsement of a propitious collaboration with a
major player in the global luxury category, thanks to which Luxottica will continue to develop prestigious
collections that leverage the universally recognized quality of “Made in Italy.”
The new agreement runs until December 2011, with an option on a two-year renewal under the same
terms.
In April, the strategy of lengthening the average duration of licenses and consolidating relationships with
licensors led to the renewal of the licensing agreement with Donna Karan International Inc., which has
been part of the LVMH group, the world’s leader in luxury goods, since 2001. The term of the new contract,
which covers prescription and sun collections under the Donna Karan and DKNY brands, is December
2014, with an option on renewal for a further five years.
OUTLOOK FOR 2009
2009 promises to be a difficult year, especially the first two quarters, and comparison with 2008 will be
difficult because of the structural adjustments the market is undergoing. In these two quarters the Group
will complete most of the measures that will enable it to optimally manage change in the market and be
stronger and better positioned for the future.
BOOSTING SALES
Having closed the sixth consecutive year of double-digit growth, Ray-Ban is fully expected to continue as
the world’s top eyewear brand in 2009 thanks to the success of its icon models, an improved product mix,
an acceleration in the optical business and the launch of collections that are particularly innovative in terms
of both design and materials, such as Ray-Ban Tech.
In 2009, Luxottica is expected to draw further benefit from the second year of integration with Oakley, from
further synergies between the two structures and from Oakley’s as yet unexpressed potential in Europe
and emerging markets. The brand has significant growth prospects for 2009, including the launch of new
models in the sport and performance categories, ongoing development of its optical and women’s
collections and its exclusive sun lens technology, which is one of the best on the market and may yield
powerful synergies across the Group. The innovative Jawbone model is expected to further the success of
the brand.
2009 will be an important year for REVO, whose production and distribution through the sports channel
has been assigned to Oakley.
OUTLOOK