'Il Sole-24 Ore': Luxottica-Versace alliance?

Luxotticais ready to join forces with Versace. So say reports from unofficial sources quoted in today's edition of financial daily newspaper 'Il Sole-24 Ore'. And Del Vecchio's presence at the Versace-Versus fashion show Sunday evening would seem to confirm the rumors reported in that newspaper.

The project under preparation envisages something more than a production and distribution license: the agreement between the two companies would involve the Cremona family, which has been linked with the Milan fashion house in a joint venture since 1999.According to the rumors reported in Il Sole 24 Ore, Luxottica appears to be ready to buy out the majority share in Gazzada's Ic Optics (which was also granted the Gai Mattiolo license by Italocremona), but the agreement would not mean joining Versace. Luxottica answered with a 'no comment', as did Versace and Lorenzo Cremona.

According to the financial newspaper's report of opinions given by some analysts who preferred to remain anonymous 'the Versace brand has good potential for development if handled by a leader like Luxottica. At a recent conference call, Del Vecchio himself stated that, under his management, two years after the licensing agreement was signed, the Chanel brand achieved billings of approximately 200 million euros, only slightly lower than the Armani brand'.In 2002 Versace billings should be around 508 million euros, in line with 2001, when Ebidta registered 48 million with net profits of 8.5 million.