Coach signs multi-year global license agreement with Luxottica for Coach eyewear
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.