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Tag: EssilorLuxottica

  • EssilorLuxottica Expands Southeast Asia Presence with Strategic Stake in Thai Optical Powerhouse Top Charoen

    EssilorLuxottica Expands Southeast Asia Presence with Strategic Stake in Thai Optical Powerhouse Top Charoen

    Global eyewear conglomerate EssilorLuxottica has recently acquired a piece of the pie in Thailand’s optical market, Top Charoen. This move is part of EssilorLuxottica’s expansion plan in Southeast Asia, reinforcing its presence in one of the fastest-growing regions for the eyewear industry.

    Partnership At Its Best

    The financial particulars of the deal were kept under wraps. However, the fusion of the world’s leading eyewear group, EssilorLuxottica, with Top Charoen, one of the largest optical chains in Thailand boasting over 2000 stores nationwide, is noteworthy. This partnership is a result of a long-standing commercial relationship between the two companies. The acquisition strengthens this bond and provides EssilorLuxottica with a deep penetration into Thailand’s retail distribution, a strategic move as global eyewear companies increasingly focus on expanding in the rapidly growing Asian markets.

    Aiming High

    Francesco Milleri, the Chairman and CEO, and Paul du Saillant, Deputy CEO at EssilorLuxottica, commented on the partnership. They expressed that their collaboration with Top Charoen is set to bolster their existing dominance in one of Asia’s most significant countries. The partnership aims to elevate vision care standards and foster growth in the emerging wearable category across the region, they added.

    Moreover, the company leadership is committed to prioritizing their customers’ needs, providing high-quality, innovative vision care products and services. With their combined strengths, they plan to drive awareness and take measures to address the increasing visual health needs of Asia.

    A Brief About Top Charoen

    Established in 1947 in Saraburi, Top Charoen has flourished into a nationwide network operating under various banners. The company has an array of brands like Top Charoen, Luxoptic, Eye Class, Eye Bright, Eye Sport, Big C Optical, Robinson Optical, and Beautiful Optic. In addition to its physical stores, Top Charoen also has a strong e-commerce presence through its own platform and local marketplaces.

    Questions & Answers

    What is the significance of EssilorLuxottica’s stake in Top Charoen?
    This acquisition provides EssilorLuxottica a deep penetration into Thailand’s retail distribution, a strategic move as global eyewear companies increasingly focus on expanding in the rapidly growing Asian markets.

    How will this partnership benefit the eyewear industry in Asia?
    The collaboration aims to elevate vision care standards and foster growth in the emerging wearable category across the region.

    What are some of the brands under Top Charoen?
    Top Charoen operates under various banners such as Top Charoen, Luxoptic, Eye Class, Eye Bright, Eye Sport, Big C Optical, Robinson Optical, and Beautiful Optic.

  • Giorgio Armani Guides Heirs on Strategic Sale of Fashion Empire to LVMH and L’Oréal

    Giorgio Armani Guides Heirs on Strategic Sale of Fashion Empire to LVMH and L’Oréal

    The fashion world is in mourning following the death of Giorgio Armani, who passed away on September 4 at the age of 91, leaving behind an empire that industry analysts value between 5 billion and 12 billion euros (approximately US$5.9 billion to US$14 billion). Known as “King Giorgio,” the designer had no children to inherit his renowned label.

    Legacy in the Hands of Influential Players

    According to his will, priority for the estate is to be given to luxury giant LVMH, beauty behemoth L’Oréal, eyewear leader EssilorLuxottica, or another qualified group identified by a foundation he established to preserve his legacy. Notably, this was done in collaboration with Armani’s business and life partner, Pantaleo Dell’Orco. All three companies acknowledged their openness to exploring potential arrangements.

    The mention of stake sales and the inclusion of well-known French companies as possible buyers came as a surprise, considering Armani’s longstanding commitment to maintaining control over his fashion group—a brand that continues to retain significant prestige, even amid a global luxury slowdown.

    Potential Partnerships Spark Excitement

    LVMH, led by billionaire Bernard Arnault, expressed gratitude to be mentioned in Armani’s will. “Giorgio Armani honors us by naming us as a potential partner for the exceptional fashion house he has built,” Arnault stated. He suggested that if a partnership were to materialize, LVMH would be dedicated to bolstering its presence globally.

    EssilorLuxottica, closely linked to Armani through commercial partnerships, also indicated a willingness to consider a potential deal. Meanwhile, L’Oréal, which currently holds a licensing agreement with the Armani group until 2050, revealed plans to explore this new opportunity. It’s quite the fashion ‘who’s who’ vying for a piece of the pie, with all eyes on the future.

    A Shift in Control and New Directions Ahead

    Analysts believe that LVMH is likely the most interested party in acquiring a stake in Armani, emphasizing the strategic alignment between their businesses. They estimate that a stake could be valued between 5 billion and 7 billion euros, and LVMH appears well-positioned financially to proceed if an opportunity arises.

    Armani’s will, comprised of two documents filed earlier this year, stipulates that heirs should sell an initial 15% stake in the fashion house within 18 months of his passing. A further transfer of an additional 30% to 54.9% stake is to follow three to five years thereafter, emphasizing a structured approach to the transition of control. Alternatively, an initial public offering (IPO) may be pursued if the heirs prefer different exit strategies.

    These provisions are largely binding and could be subject to challenges in court if unmet, according to Italian legal experts. Known for revolutionizing modern fashion with his minimalist approach to jackets and suits, Armani had rebuffed several acquisition attempts over the years, including approaches from Gucci and John Elkann of the Agnelli family.

    The Future of Armani’s Vision

    Maintaining a firm grip on both creative and operational leadership, Armani has left a business generating stable revenues—an impressive 2.3 billion euros (around US$2.7 billion) in 2024—but one struggling with shrinking profits, now less than 3% of revenue according to Berenberg’s calculations.

    The will details various share types with different voting rights, ensuring that the Fondazione Giorgio Armani and Dell’Orco together control a significant 70% of the company. The foundation is committed to holding no less than 30% of the capital, serving as a safeguard of Armani’s founding principles, and is tasked with proposing a successor to lead the group.

    While the world waits to see what direction Armani’s heirs will take, one thing is clear: the legacy of Giorgio Armani will continue to influence fashion on a global scale.

    Questions & Answers

    What are the estimated values of Giorgio Armani’s fashion empire?
    The fashion empire is estimated to be worth between 5 billion and 12 billion euros (approximately US$5.9 billion to US$14 billion).

    Who are the potential buyers mentioned in Armani’s will?
    The potential buyers include luxury conglomerate LVMH, beauty giant L’Oréal, and eyewear leader EssilorLuxottica, with the possibility of other equally qualified groups being considered.

    What does Armani’s will stipulate regarding the transfer of ownership?
    The will requires heirs to sell an initial 15% stake within 18 months of Armani’s death, followed by an additional 30% to 54.9% stake within three to five years, or to pursue an IPO if preferred.

  • Ray-Ban maker EssilorLuxottica sees “good surprise” performance in Asia

    Ray-Ban maker EssilorLuxottica sees “good surprise” performance in Asia

    EssilorLuxottica reported a rise in its third-quarter revenues on Friday as the world’s biggest eyewear maker saw a rebound in sales in the Asia-Pacific region and slight growth in North America.

    The French-Italian company, which makes Oakley and Ray-Ban sunglasses, reported revenue of 6.39 billion euros ($6.24 billion) for the three months to Sept. 30, up 8.2% on the year at current exchange rates.

    Asia-Pacific was the group’s fastest-growing region with a 22.7% revenue rise in the quarter at constant exchange rates to 761 million euros.

    The retail business in particular bounced back strongly in the region, EssilorLuxottica said, after a negative second-quarter performance hit by COVID-19 lockdowns in mainland China.

    Sales in North America, the company’s biggest market, increased by 3.4% to 3.01 billion euros at constant exchange rates, driven by the direct-to-consumer division, the group said.

    “It’s a solid and reassuring publication,” Stifel analyst Cedric Lecasble told Reuters, noting a “resistant” performance in North America and a “good surprise” in other regions, notably Europe amid the macroeconomic downturn and Asia.

    While EssilorLuxottica’s broad consumer base in the United States and Europe exposes it to macro pressures in those regions, it is more insulated from inflation than peers in the discount eyewear business thanks to its luxury licences, Bernstein analyst Luca Solca said.

    EssilorLuxottica makes glasses for brands such as Chanel and Prada, among others.

    Despite concerns that the luxury industry’s post-pandemic boom could be cooling, Birkin bag maker Hermes on Thursday said there were no signs of a slowdown so far as U.S. shoppers took advantage of the dollar’s strength in Europe and China rebounded sharply, echoing earlier comments from Louis Vuitton owner LVMH.

    EssilorLuxottica’s shares were down 1.8% at 0743 GMT, slightly underperforming France’s blue-chip index CAC 40 that fell 1.2%.

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  • Facebook, EssilorLuxottica unveil first smart glasses

    Facebook, EssilorLuxottica unveil first smart glasses

    Facebook launched its first smart glasses on Thursday in a step toward its aim of offering true augmented-reality spectacles.

    The glasses, which were created in partnership with Ray-Ban maker EssilorLuxottica, allow wearers to listen to music, take calls or capture photos and short videos and share them across Facebook’s services using a companion app. Facebook said the glasses line, called “Ray-Ban Stories,” would start at $299.

    The social media giant, which reported revenue of about $86 billion in 2020, makes most of its money from advertising but has invested heavily in virtual and augmented reality, developing hardware such as its Oculus VR headsets and working on wristband technologies to support augmented reality glasses.

    Facebook’s chief scientist said last year the company was five to 10 years away from being able to bring to market “true” AR glasses, which would superimpose virtual objects onto the wearer’s view of the real world.

    Major tech firms including Amazon.com, Alphabet Google, Microsoft, Apple and Snap have raced to develop various smart glasses products, but early offerings like Google Glass proved difficult to sell to consumers put off by high price points and design issues.

    Snap, which unveiled its smart Spectacles in 2016, this year launched AR glasses but they are not for sale and are offered only to AR creators. Snap’s CEO, Evan Spiegel, said in 2019 that he expected it would be a decade before consumers widely adopted AR smart glasses.