Press release from Business Wire
Coach Signs Multi-Year Global License Agreement with Luxottica for Coach Eyewear
Tuesday, October 05, 2010
Coach Signs Multi-Year Global License Agreement with Luxottica for Coach Eyewear05:00 EDT Tuesday, October 05, 2010 NEW YORK & MILAN (Business Wire) -- Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, and Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), a global leader in premium fashion, luxury and sports eyewear, today announced the signing of a license agreement for the design, manufacturing and global distribution of sun and prescription eyewear under the Coach, Coach Poppy and Reed Krakoff brands, beginning January 2012. “We're very excited about this partnership, which will combine Coach's distinct design aesthetic with Luxottica's excellent product quality and craftsmanship,” said Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc. “Through the new Coach Eyewear collection by Luxottica, we will continue to offer a compelling eyewear assortment to our consumers and further strengthening our position as a global lifestyle accessories brand.” “We are very excited and proud to be entering this new partnership with Coach, one of the most important accessories brands in the world”, commented Andrea Guerra, Chief Executive Officer of Luxottica Group. “Coach's brand proposition, its commitment to the highest standards for design and craftsmanship and its distribution in strategic geographies worldwide fit perfectly within our portfolio. Over the years, Coach has enjoyed increasing global recognition and is now greatly appreciated by consumers throughout the world, and we are confident that this partnership will be mutually beneficial.” Distribution of Coach eyewear collections will be through Coach stores across the world, through select department stores primarily in North America, Japan, China and East Asia as well as through select travel retail locations, independent optical locations and Luxottica's retail chains. The multi-year agreement will begin on January 1, 2012 and include renewal options; the first collection will be presented during 2012. Coach eyewear is expected to generate strong growth, with annual sales – outside of Coach stores - targeted at approximately $100 million annually, after the initial launch period and once the distribution has been fully rolled out across key geographies and channels. Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, scarves, sunwear, jewelry, fragrance and related accessories. Coach is sold worldwide through Coach stores, select department stores and specialty stores, through the Coach catalog in the U.S. by calling 1-800-223-8647 and through Coach's website at www.coach.com. Coach's shares are traded on The New York Stock Exchange under the symbol COH. Luxottica Group is a leader in premium fashion, luxury and sports eyewear, with over 6,300 optical and sun retail stores in North America, Asia-Pacific, China, South Africa and Europe and a strong and well-balanced brand portfolio. Luxottica's key house brands include Ray-Ban, the best known sun eyewear brand in the world, Oakley, Vogue, Persol, Oliver Peoples, Arnette and REVO, while license brands include a wide range of world famous designers. In addition to a global wholesale network covering 130 countries, the Group manages leading retail brands such as LensCrafters and Pearle Vision in North America, OPSM and Laubman & Pank in Australasia, LensCrafters in Greater China and Sunglass Hut globally. The Group's products are designed and manufactured in six Italy-based manufacturing plants, two wholly-owned plants in China and a sports sunglass production facility in the U.S. In 2009, Luxottica Group posted consolidated net sales of Euro 5.1 billion. Additional information about the Group is available at www.luxottica.com. This press release contains forward-looking statements based on management's current expectations. These statements can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "intend," "estimate," "are positioned to," "continue," "project," "guidance," "forecast," "anticipated," or comparable terms. Future results may differ materially from managements' current expectations, based upon risks and uncertainties such as expected economic trends, the ability to anticipate consumer preferences, the ability to control costs, etc. Please refer to both companies respective annual filings with the SEC for a complete list of risk factors.