ITALY. Italian powerhouses Prada and Luxottica have signed a ten-year licensing agreement for the exclusive production and distribution of prescription frames and sunglasses bearing the Prada and Miu Miu names. Luxottica said it expects the deal to generate sales of about €120 million in the first 12 months.
The agreement – which comes after Prada ended its four-year joint venture with De Rigo – covers all markets worldwide. Prada bought out De Rigo’s 51% stake in their joint-venture company, EID – formed in 1999 – and subsequently sold it to Luxottica for €26.5 million.
Prada will oversee the creation, design and overall creative co-ordination of all the optical collections under the supervision of Patrizio Bertelli and Miuccia Prada. The first lines will be presented and launched this September. Luxottica – which will produce and distribute the eyewear – will have the option to rely on third-party manufacturers under its own supervision.
Prada is a welcome addition to Luxottica’s portfolio, following the 2002 termination of its 14-year Giorgio Armani license. Earlier this year it signed a deal with Versace, but Prada will add significantly to its critical mass.
Luxottica Group chairman Leonardo Del Vecchio commented: “I am very satisfied to include Prada, one of the most important brands in international luxury goods, in our portfolio. With this new license – and others we have recently signed – we have restored the importance that designer lines had for us in 2002 and at the same time we have extended the duration of the licenses in our portfolio.”
Prada chief administrative officer Patrizio Bertelli said: “The agreement with the world leader in eyewear allows our Group to significantly expand its presence in the prescription eyewear and sunglasses markets, therefore contributing to the overall success of the agreement with the strength of our brands, our prestige and our design. I am certain that the strong technological, industrial and distributive capabilities of Luxottica Group will pave the way to achieve significant economic results in a short amount of time.”
