EssilorLuxottica SA and Giorgio Armani’s fashion group said Wednesday that they’ll renew a landmark licensing agreement with roots in the 1980s, which saw optics tycoon Leonardo Del Vecchio and fashion icon Armani join forces to shake up the eyewear world.
The companies said they’ll extend their current cooperation deal for 15 years, continuing to focus on development, production and global eyewear distribution under the Giorgio Armani, Giorgio Armani Privé, Emporio Armani, EA7 Emporio Armani and A|X Armani Exchange brands.
The companies have been working together on and off since 1988, when Luxottica’s founder and late Chairman Del Vecchio teamed up with Giorgio Armani in a then-revolutionary bid to transform eyeglasses from ho-hum optical devices to must-have fashion accessories.
Analysts were upbeat on the extension, with Equita’s Domenico Ghilotti writing in a note that it’s “positive news, although in our view taken for granted by the market in light of Armani’s long partnership and presence in Essilux’s capital.”
Luxottica terminated the original licensing deal in 2002, citing “different strategic priorities,” sending the eyeglass maker’s shares down the most in 12 years. It wasn’t for another decade that the two sides agreed to a new contract, which saw orders for Armani-branded eyewear soar above expectations following the agreement.
EssilorLuxottica holds a capital markets day on Wednesday, which is starting “on a high note” given the renewal, Bernstein analyst Luca Solca said in emailed comments.
By Chiara Remondini and Flavia Rotondi.
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