MILAN — Italian eyewear giant Luxottica on Thursday confirmed a tax audit over some of its accounting practices, but insisted it follows universally accepted practices.The audit concerns alleged irregularities in the use of a practice called transfer pricing, which is understood to be the price at which divisions of a company transact with each other. Transactions may include the trade of supplies or labor between departments.Luxottica said it “has been consistently adopting and applying a fair and correct transfer pricing policy, totally compliant with the law and the most updated guidelines issued by the OECD [the Organization for Economic Co-operation and Development],” which the company described as “the undisputed leading authority for transfer pricing.”Luxottica, which in addition to house brands such as Ray-Ban and Oakley, produces eyewear collections for brands including Burberry, Chanel, Ralph Lauren and Versace, said “the challenge by the Italian Revenue Service specifically concern[s] the ordinary export of products by the Italian manufacturing company Luxottica Srl to its trading affiliates located in all the main markets.” The company underscored that these “are routine commercial transactions, i.e. the sales of products within the corporate group of Luxottica. These are not extraordinary transactions, nor transactions involving low-tax jurisdictions or otherwise aimed at shifting income abroad.”It is understood that the Guardia di Finanza, an Italian police force under the authority of the national minister of economy and finance, and the Italian Revenue Service have been looking at Luxottica’s accounts to determine whether the company has evaded declaring income in Italy. A source said the evasion would revolve around an unfaithful tax declaration of more than 2 million euros, or $2.6 million at current exchange. Following a request from prosecutors, the police have been visiting Luxottica’s headquarters and offices in the Italian town of Agordo, near Belluno.“The Italian company Luxottica Srl sells its products to affiliates generally resident in OECD member countries and in any case in high-tax jurisdictions, so no tax benefit was sought in these transactions: It is not even conceivable to argue the existence of a transfer pricing practice aimed at an abusive intent and subject to sanctions,” contended the company.
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim
“I genuinely fell in love with water, I fell in love with Fiji, I fell in love with the whole life that we lived for those few months,” says @mrsamclaflin of filming for his new movie “Adrift” with @shailenewoodley. The 31-year-old actor spoke with WWD about his upcoming projects, meeting Jamie Dornan and working with co-star Woodley. #wwdeye (📷: @jamstoker)
3 years ago, fans of the late singer Aaliyah started calling for a collaboration with @maccosmetics. With the strength of social media — including mock ups of products — 25,000 people signed a Change.org petition for a limited-edition collection, and MAC couldn’t ignore the buzz. Tomorrow, MAC will unveil MAC x Aaliyah, a tribute to the singer who passed away nearly 17 years ago. Head to our stories to preview the new collection, which was worked on by Aaliyah’s family and inspired directly by her makeup bag. #wwdbeauty
Artistic director @clarewaightkeller will be dedicating @givenchyofficial’s fall 2018 couture show in Paris on July 1 to house founder Hubert de Givenchy, who passed away in March at age 91. Givenchy said the collection would be “an homage to his iconic creations, technique, and personal lexicon” and a “celebration of his timeless elegance and grace.” Head to WWD.com to read more. #wwdfashion (📷: Delphine Achard)
La Double J made a name for itself with its vintage-inspired prints, but for resort, designer JJ Martin has ventured into new territory: enter rich jewel toned solids and decadent embellishment, in the form of appliqués, crystals and sequins. #wwdfashion #resort19 #ladoublej
This Just In: J. Crew Group has named Johanna Uurasjarvi as its chief design officer.
Uurasjarvi succeeds Somsack Sikhounmuong, who left the company last September. Tap the link in bio for the full report. #wwdnews
“She came into my hotel room and she was like, ‘I have Chanel and Christian Dior.’ She was like, ‘Chanel likes you.’ And I was like, ‘I’m going to start crying,’” breakout star Maddie Hasson tells WWD of her styling sessions Molly Dickson. “I really like classic, elegant things. I love the way Anna Wintour dresses.” Read more about Hasson’s role in @impulseseries on wwd.com. (📸: @jgreenery ) #wwdeye
@virgilabloh revealed he's working with Australian stylist and
Vogue Australia fashion director @christinecentenera for his debut @louisvuitton men's collection, which will be presented in Paris on June 21. Centenera met Abloh while both working with Kanye West, where she consulted on his all his runway collections since his debut spring 2012 women's wear show. Read the full story on WWD.com. #wwdfashion #wwdnews (📷: @asussmanphoto)