Andrea Guerra describes future strategies for Luxottica

After the positive results achieved in the fourth quarter and the whole of 2004, yesterday Andrea Guerra, CEO of Luxottica, described the projects for 2005 to analysts and investors.

As regards licenses, in addition to renewing the contracts with Chanel and Bulgari (of those under license, the brands with the best sales and profits, respectively), the production of Donna Karan eyewear began last January and Luxottica is focusing on Dolce & Gabbana for year end. Guerra did not exclude new contracts. In any case, Luxottica intends to maintain the current sales mix, 65% for its own 16 lines (with Ray-Ban at the top - it alone represents 15% of revenues) and 35% for eight labels under license.

Luxottica also wants to strengthen distribution in Asia and, according to reports in Finanza & Mercati, by year end it could finalize the acquisition of a chain of stores in Beijing, China. The company intends to double billings in the Far East from 15 to 30% within 24 months. Other markets in which Luxottica aims to grow are emergent European Union countries, some countries in Latin America, Russia, Turkey, Hong Kong.

The Veneto company's plans also include restyling the American stores: around half the 1,500 Sunglass Hut outlets will be modernized, 70 openings are envisaged, but also some closures in cities considered to be non-strategic.

As far as the latest acquisitions are concerned, Cole National and Opsm, within 24 months the Group aims to increase Ros (return on sales) from 3 to 14% at the Usa chain and from 11 to 14% at the Australian chain. The Cole National integration process is ongoing and Guerra stated that by year end, one of every two pairs of glasses sold at the stores in the chain will be a Luxottica product.