The renewal of the exclusive worldwide agreement for the production and distribution of the Italian luxury label’s eyewear has strengthened the bond between the two groups, which first teamed up in 2006.
EssilorLuxottica expects continued profit growth this year after stronger 2019 results, saying the outbreak of coronavirus had not hit output at its Italian factories and its China production was becoming normal.
The new, five-year licence deal between the Italian eyewear group and the French luxury label will start on January 1 2020 and end on December 31 2024, with the option of a 3-year extension until December 2027.
Growing demand for vision correction should boost sales of Ray Bans and other eyeglasses, EssilorLuxottica said on Wednesday, with profits also driven by cost cuts of up to 600 millions euros a year from 2022.
The Italian jeweller’s renewal for a three-year term will be effective on January 1 2021, when the current agreement will expire, and extend to December 31 2023, with a focus on emerging markets, Asia and the USA.
EssilorLuxottica's shareholders have rejected the appointment of two new independent directors to the board of the Franco-Italian eyewear group, raising fresh doubts over whether a management crisis has been resolved.
EssilorLuxottica declared an end to a damaging feud between its French and Italian partners on Monday, saying it would focus on finding a new chief executive and integrating the eyewear group formed by a merger.
EssilorLuxottica posted higher first-quarter sales and maintained full-year targets on Tuesday, just days ahead of an annual meeting where investors are expected to voice frustration over a leadership row at the firm.