As per the agreement, starting in 2018, Marcolin will design and manufacture eyewear for the Céline and Louis Vuitton brands, with the goal of “becoming, in the future, the preferred partner” of the LVMH group in the eyewear business.
MILAN — All eyes are on the eyewear sector, which is going through a series of seismic changes as the big players in this arena adapt to ever-evolving business demands.The announcement of a new joint venture between LVMH Moët Hennessy Louis Vuitton and Marcolin is expected to further shake up the category, in the wake of the Luxottica Group and Essilor merger revealed last month that will create a $16 billion giant. Kering was the first to initiate the string of changes, when it decided to set up a new dedicated entity in 2014 and bring eyewear production in-house.On Tuesday, competitor Safilo Group was once again hit by the latest news, as shares closed down 7.5 percent to 6.35 euros, or $6.81 at current exchange rates, on the Milan Stock Exchange.Marcolin SpA lifted the veil on the rumored agreement with LVMH Wednesday. Starting in 2018, Marcolin will design and manufacture eyewear for the Céline and Louis Vuitton brands, with the goal of “becoming, in the future, the preferred partner” of the LVMH group in the eyewear business. LVMH will control 51 percent of the joint venture and Marcolin the remaining 49 percent.Preparatory to the joint venture, Marcolin is launching a capital increase of 21.9 million euros, or $23.5 million at current exchange, and issuing a bond of 250 million euros, or $268.2 million, expected to mature in 2023.LVMH will take a 10 percent stake in Marcolin, which produces and distributes eyewear collections for brands including Tom Ford, Tod’s, Balenciaga, Moncler and Dsquared2, among others. This confirms a report published last month.Marcolin listed a new revolving credit facility of up to 40 million euros, or $43 million. The company will use the funds to redeem 200 million euros, or $214.6 million, of senior secured notes due in 2019 and other short- and medium-term financing.Marcolin estimated that equity contributions to the start-up costs, capital expenditures and working capital will total between 20 million and 25 million euros, or $21.4 million and $26.8 million, over the course of the next four to five years, of which it expects to fund approximately 7 million euros, or $7.5 million, in 2017.In the 11 months ended Nov. 30, revenues and adjusted earnings before interest, taxes, depreciation and amortization “will be largely in line” with the same period in the previous year, said Marcolin. The company pointed to increased sales in Italy, the Rest of Europe and the Rest of the World, which offset decreased sales in the Americas and Asia.Competitor Safilo on Tuesday reported a 2 percent contraction in full-year sales to 1.25 billion euros, or $1.35 billion, following the loss of licenses including Gucci, which ended in December, two years earlier than planned and which represented some 15 percent of the group’s revenues from the start of the year through the third quarter.In addition to its own house brands Carrera, Polaroid and Safilo, the company produces and distributes eyewear collections for several brands in the LVMH stable, including Dior, Céline, Fendi, Givenchy and Marc Jacobs.Safilo has been focusing on its 2020 Strategic Plan and a balanced brand portfolio that can guarantee business stability in the long-term. The storied group readjusted its strategies for the Gucci license when Kering said it was assuming control of its eyewear business.In December, Safilo said it had renewed its license with Christian Dior Couture, part of the LVMH stable. The Italian eyewear company and the French firm extended the agreement for the design, production and worldwide distribution of the Dior and Dior Homme eyewear collections through Dec. 31, 2020.At the same time, Safilo said its licensing agreement with Céline, which will officially expire at the end of 2017, was not being renewed.Luxottica produces eyewear under license for names including the Giorgio Armani Group, Bulgari, Burberry, Chanel, Coach, Prada and Versace and also has a number of owned brands, such as Ray-Ban, Oakley and Persol. It and Essilor, the leading maker of lenses worldwide, have agreed to a 46 billion euro, or $48.7 billion, merger to form an eyewear powerhouse with annual sales of more than 15 billion euros, or $15.9 billion.Marcolin was founded by Giovanni Marcolin Coffen in 1961 in Longarone, Italy, in the Cadore eyewear district. PAI Partners took control of the company in 2012. Brothers Diego and Andrea Della Valle, who invested in Marcolin in 2004, remained shareholders of the firm, which is led by chief executive officer Giovanni Zoppas, who joined in December 2011.Marcolin went public on the Milan Stock Exchange in 1999 and was delisted in 2013, following PAI’s investment.According to Euromonitor International, the global eyewear market is worth $121 billion and Luxottica is the leading eyewear company with a 14 percent share in 2015, up from 12 percent in 2010. Essilor follows with a 13 percent share, up from 11.05 percent in 2010. Safilo takes up 4.3 percent of the global spectacles market.
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion
@longchamp, which marks its 70th anniversary this year, just opened its biggest U.S. store on Manhattan’s Fifth Avenue. On the lower level there’s a floor-to-ceiling display of the brand’s iconic Le Pliage bag – in all of its different colors, shapes and sizes. Customers can also have their product personalized in-store by imprinting names, initials or emblems. #wwdfashion (📷: @ericmtownsend)
“Whenever I’m in that place of sound and music, I don’t have fear or nervousness…This album has a lot of themes of courage and boldness and I want to be the soundtrack for people’s lives. I’ll be so happy if [my songs] evoke strength in people, which I know music has done for me,” says @kimbramusic of her newest album “Primal Heart.” The New Zealand-born singer sat down with WWD to talk about her music, newest tour and connecting with hear fans — read more on WWD.com #wwdeye (📷: @jilliansollazzo)
Luxury handbag resale company @rebagofficial is planning to sell a rare collectible for $70,000: the @hermes White Crocodile Himalayan Birkin. The exclusive Birkin sold for about $100,000 in 2008, when @davidbeckham bought one for his wife @victoriabeckham to add to her collection. Read more about the rare Birkin on WWD.com #wwdaccessories
With her costume pearl necklace and what-you-see-is-what-you-get style, Barbara Bush, who died Tuesday at age 92, was a straight-shooter from start to finish.
Born Barbara Pierce in New York City, Bush served as the 37th first lady, as well as the country’s second lady from 1981 to 1989. In addition to being part of the longest presidential marriage — 73 years — Bush also had the unlikely distinction of having one son, George W., become the 43rd president and another son, Jeb, run unsuccessfully in 2016. Having served as second lady during the Reagan administration’s two terms and lived all over the world during her own husband’s ascending political career, Barbara Bush made it clear that literacy — not fashion — was her priority. Read more from Rosemary Feitelberg’s obituary on the late First Lady in WWD.com, link in bio. #barbarabush #wwdnews
Western and ’90s trends have influenced denim for fall 2018. Think raw, dark and coated jeans mixed with bold prints and tough leather. #trendtuesdays #wwdfashion (Styled by @thealexbadia;📷: @ryanplett)