Burberry and Luxottica Announce 10-Year Eyewear Licence
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 worldwide.
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
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.
CONTACT: 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 Group S.p.A. -0- Oct/07/2005 6:45 GMT