LONDON and MILAN, Italy, Oct. 7 /PRNewswire-FirstCall/ -- Burberry Group
plc (LSE: BRBY), the international luxury apparel and accessories brand, and
Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX), worldwide leader in the eyewear
sector, announced today a 10-year licence agreement for the design, production
and worldwide distribution of prescription frames and sunglasses under the
Burberry name. The agreement will begin on January 1, 2006.
Brian E. Blake, President and Chief Operating Officer of Burberry Group
plc commented: "Burberry looks forward to working with Luxottica in this new
global partnership. Among Luxottica's many strengths, its proprietary store
network in key markets and targeted growth geographies are very well aligned
with Burberry's expansion strategies. Together we will endeavour to realise
the exciting opportunities for the Burberry brand in the eyewear category."
Leonardo Del Vecchio, Chairman of Luxottica Group, commented: "We are
extremely pleased with this new long-term licence agreement and look forward
to working with the Burberry team to develop new, exciting collections.
Burberry is one of the world's most distinctive and dynamic luxury brands.
Burberry's strength in the substantial U.S. and Japan markets is of particular
strategic importance for our Group."
"The Burberry licence represents the first step in a process of more
proactively managing our brands portfolio. We expect this will result in a
further strengthening of what is already one of the best-balanced brands
portfolios in our industry."
The first Burberry eyewear collections under the agreement will be
presented in October 2006. The two companies expect that the collections have
the potential to generate wholesale sales in excess of euro 50 million
annually within two to three years of launch.
Burberry, founded in 1856, is a leading international luxury brand.
Burberry designs, manufactures and licenses apparel and accessories for
distribution through its own stores and a network of prestige retailers
About Luxottica Group S.p.A.
Luxottica Group is a global leader in eyewear, with nearly 5,500 optical
and sun retail stores mainly in North America and Asia-Pacific and a well-balanced portfolio that comprises leading premium house and licensed brands,
including Ray-Ban, the best selling sun and prescription eyewear brand in the
world. Among others, the Group's brand portfolio includes house brands Vogue,
Persol, Arnette and REVO and license brands Bvlgari, Chanel, Dolce & Gabbana,
Donna Karan, Prada and Versace. Luxottica Group's global wholesale network
touches 120 countries, with a direct presence in the key 28 eyewear markets
worldwide. The Group's products are designed and manufactured at its six
Italy-based high-quality manufacturing plants and at the only China-based
plant wholly-owned by a premium eyewear manufacturer. For fiscal year 2004,
Luxottica Group posted consolidated net sales and net income of euro 3.2
billion and euro 286.9 million, respectively. Luxottica Group's 2004 annual
report is available online at http://annual-report-2004.luxottica.com.
Additional information on the Group is available at http://www.luxottica.com.
Safe Harbor Statement
Certain statements in this press release may constitute "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of
1995. Such statements involve risks, uncertainties and other factors that
could cause actual results to differ materially from those which are
anticipated. Such risks and uncertainties include, but are not limited to,
fluctuations in exchange rates, economic and weather factors affecting
consumer spending, the ability to successfully introduce and market new
products, the ability to successfully launch initiatives to increase sales and
reduce costs, the availability of correction alternatives to prescription
eyeglasses, the ability to effectively integrate recently acquired businesses,
including Cole National, risks that expected synergies from the acquisition of
Cole National will not be realized as planned and that the combination of
Luxottica Group's managed vision care business with Cole National will not be
as successful as planned, as well as other political, economic and
technological factors and other risks referred to in Luxottica Group's filings
with the U.S. Securities and Exchange Commission. These forward-looking
statements are made as of the date hereof and Luxottica Group does not assume
any obligation to update them.
SOURCE Burberry Group plc; Luxottica Group S.p.A.
Investor Relations: John Scaramuzza of Burberry Group plc, +44-20-7968-0577;
Media Relations: Robert Gardener or Laura Cummings, both of Brunswick Group
plc, +44-20-7404-5959; or Luca Biondolillo, Head of Communications, +39-02-8633-4062, LucaBiondolillo@Luxottica.com, or Alessandra Senici, Manager, Investor
Relations, +39-02-8633-4089, AlessandraSenici@Luxottica.com, both of Luxottica
-0- Oct/07/2005 6:45 GMT
Press spacebar to pause and continue. Press esc to stop.