Luxottica signs a 10-year deal for Prada and Miu Miu names

Under the agreement, Prada will oversee the creation, design and creative coordination of the collections, the first of which will be launched in September.
The deal was finalised through Luxottica's purchase of Prada's fully-owned companies that produce and distribute the eyewear, for E26.5m. Luxottica will have the option to rely on third-party manufacturers under its supervision.
The deal follows the sale in July of De Rigo's 51 per cent stake in the Prada joint venture.
Luxottica predicts sales of E120m for the first 12 months, adding that the agreement would not have a significant impact on 2003 results. Chairman Leonardo Del Vecchio said that Prada was one of the most important brands in the international luxury good market. 'With this new license Ð and others we have recently signed Ð we have restored the importance that designer lines had for us in 2002 and at the same time have extended the duration of the licences in our portfolio.'
Prada's chief administrative officer Patrizio Bertelli said the agreement would allow the group to significantly expand its presence in the prescription eyewear and sunglass markets.
Luxottica announced a drop in first half sales by 19.8 per cent at E1.41bn, hit by a stronger euro against the US dollar. Second quarter sales were down by 19.6 per cent. Del Vecchio said, 'Since the beginning of June we have been experiencing an increase in orders from opticians when compared to previous months, which leads us to believe they have sold out of the surplus inventories built in 2002'.