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Luxottica & Burberry seal 10-year eyewear licensing agreement

Oct '05
Eyewear leader Luxottica Group S.p.A and Burberry Group plc the international luxury apparel and accessories brand announced 10-year license 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 they will endeavour to realise the exciting opportunities for the Burberry brand in the eyewear category.”

Leonardo Del Vecchio, Chairman of Luxottica Group, commented: “Company is 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 Group.”

“The Burberry licence represents the first step in a process of more proactively managing brands portfolio. They expect this will result in a further strengthening of what is already one of the best-balanced brands portfolios in 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 €50 million annually within two to three years of launch.

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