Luxottica: 3% of Global Billings to Be Recovered in the First Year with Versace

After signing the agreement with Versace and the subsequent acquisition of IC Optics, the Luxottica Group is already considering other possibilities of expansion and is looking at opportunities in the retail and wholesale business. The main objective is to offset the loss of the Armani license, but that's not all. The company aims to exceed previous levels. 'We forecast a turnover of 90 million euros within the first twelve months of business' stated the Group's CEO, Roberto Chemello, on the pages of MF Fashion, 'in effect, we should make up for the loss of the Giorgio Armani brand during the first year, let's say around 3% of total billings. This means that we could immediately recoup almost half the loss of the various Armani brands.'

Mr Chemello also explained that the acquisition of IC Optics will allow Luxottica to work without making too many traumatic changes; the operation also led to the acquisition of a half share in ItaloCremona.

On the Stock Exchange, after the agreement finalized with the Versace Group, Luxottica Group stock rose yesterday by 1.58% to 12.70 euros. The stock earned a buy on the part of Merrill Lynch which identified the 12-month target price of 16 euros for stock in Leonardo del Vecchio's company.

(Source: MF Fashion)