Dolce & Gabbana eyewear license goes to Luxottica in 2006
Luxottica Group and Dolce & Gabbana, one of the leading international companies in the clothing and luxury goods sector, jointly have announced the signing of a five-plus-five-year licensing agreement for the design, production and worldwide distribution of Dolce & Gabbana and D&G Dolce & Gabbana prescription frames and sunglasses.
The initial five-year agreement, which will begin on January 1, 2006, is automatically renewable for an additional five years through December 2015 upon meeting certain sales targets.
The two brands Dolce & Gabbana and D&G Dolce & Gabbana, and the collections on which they are used, are direct expressions of the creative flair of Domenico Dolce and Stefano Gabbana, who personally follow each step of the creative process. 'Throughout our life we have always taken those choices that seemed to be the most natural ones, and this choice was undoubtedly among the most difficult ones', affirm Domenico Dolce and Stefano Gabbana. 'The 10 year long collaboration with Marcolin was certainly positive and fruitful. Now, aiming at a further international development of the Group, we felt the need to exploit our potential even more within a dimension that can guarantee the company's growth'.
Leonardo Del Vecchio, chairman of Luxottica Group, commented: 'We are particularly pleased to partner with one of the fastest growing fashion brands in the industry. The global leadership, experience and expertise of our team combined with Dolce & Gabbana's commitment to making accessories and eyewear in particular an increasingly stronger contributor to their business is sure to make it a particularly strong partnership'.
The first new Dolce & Gabbana and D&G Dolce & Gabbana eyewear collections will be presented in January 2006. Luxottica Group expects to generate sales from the new collections of approximately € 120 million during the first twelve months since its commercial launch, with additional growth beyond that through the fifth year. Luxottica Group indicated that terms are in line with license agreements with other major brands already in the Group's portfolio. Additionally, terms include a € 60 million January 2006 advance payment on royalties that will mature over the five-year term of the initial agreement.
Finally, Luxottica Group and Marcolin SpA, the company that currently holds the license, agreed to start discussions to identify potential distribution synergies between the two organizations. These synergies would also be geared toward strengthening further the presence of Dolce & Gabbana eyewear brands in the market.
