Businessweek

Luxottica Group S.p.A. designs, manufactures, and distributes fashion, luxury, sport and performance eyewear. The company’s manufacturing of sun and prescription eyewear was backed by a wholesale network and a retail distribution network comprising approximately 7,000 retail locations, including in North America, the Asia-Pacific, China, and Latin America as of December 31, 2012. Segments The company operates in two industry segments, Manufacturing and Wholesale Distribution, and Retail Distribution. Manufacturing and Wholesale Distribution: This segment engages in the design, manufacturing, wholesale distribution, and marketing of proprietary brands and designer lines of mid- to premium-priced prescription frames and sunglasses, as well as of performance optics products. Retail Distribution: As of December 31, 2012, this segment owned and operated 6,417 retail locations worldwide and franchised an additional 543 locations principally through its subsidiaries, such as Luxottica Retail North America, Inc.; Sunglass Hut Trading, LLC; OPSM Group Limited (OPSM Group); Oakley, Inc.; and Multiópticas Internacional S.L. The company’s retail business owns various chains, including Sunglass Hut, a major retailer of premium sunglasses; OPSM Group, a major optical retailer in Australia and New Zealand; Cole National Corporation, which brought with it another primary optical retail chain in North America; Pearle Vision; and a retail store business (Target Optical and Sears Optical). The company’s retail expansion is into China, the Middle East, South Africa, Thailand, India, the Philippines, Mexico, Brazil, and the Mediterranean Europe. The company started its optical retail expansion in Latin America by completing the acquisition of Multiópticas Internacional S.L., a primary retailer in Chile, Peru, Ecuador, and Colombia operating under the Opticas GMO, Econópticas, and Sun Planet retail brands. The company’s proprietary brands include Ray-Ban, Oakley, Vogue, Persol, Oliver Peoples, Alain Mikli, Arnette, and REVO, and its licensed brands include Bulgari, Burberry, Chanel, Coach, Dolce & Gabbana, Donna Karan, Paul Smith, Polo Ralph Lauren, Prada, Stella McCartney, Tiffany, Tory Burch, Versace, and starting from 2013, Armani. The company engages in the prescription business in North America with its LensCrafters and Pearle Vision retail brands; in the Asia-Pacific with its OPSM and Laubman & Pank brands; in China with its LensCrafters brand; and in South America with its GMO brand. In North America, the company operates points of sale for its retail Licensed Brands under the Sears Optical and Target Optical brands. In addition, the company is a managed vision care operator in the United States, through EyeMed, and a lens finisher, having a network of 5 central laboratories and approximately 900 on-site labs at LensCrafters stores. The company has developed a global sun and luxury retail organization to support and reinforce its global retail brands dedicated to sun and luxury eyewear, including the Sunglass Hut, ILORI, The Optical Shop of Aspen, and Bright Eyes brands. The Sunglass Hut brand, in particular, has a global presence, including in North America, the Asia-Pacific, South Africa, Europe, Latin America, and the Middle East. The company’s Oakley brand provides a wholesale and retail (O Stores) presence in both the performance optics and the sport channels. In its O Store locations, the company offers various Oakley-branded products in addition to its Oakley eyewear styles. Its Oakley-branded products include apparel, footwear, backpacks, and accessories designed for surf, snow, golf, outdoor, motor sport, mountain bike, and other athletic lifestyles. The company’s distribution channels are complemented by an e-commerce component, including the Oakley, Ray-Ban and Sunglass Hut Websites. The e-commerce strategy is to enter additional markets as the business matures. Brand Portfolio In January 2013, the company commenced a 10-year license agreement with the Armani Group (Armani) for the design, manufacturing, and worldwide distribution of sun and prescription eyewear under the Giorgio Armani,