Morningstar Rating

Stock Research and Analysis

by Paul Swinand

Bulls Say

Luxottica has a dominant position in a vertically integrated business where scale and distribution power increase returns on capital.
Luxottica's sun brands are hard to copy. Oakley and Ray-Ban will not be easily displaced as the leading brands in North America, and have now developed followings around the world.
Global distribution and a large retail store base give Luxottica a barrier against entry by competitors, as any new entrant would have to consider using some of Luxottica's retail network if it were to reach the manufacturing scale needed to compete. Read more 

Bears Say

While global demand for eyewear should increase with growth in consumer classes, Luxottica's portfolio addresses with premium products only the top 10% of consumers.
Luxury trends can change quickly, and investors should be careful not to mistake fashion trends for long-term competitive advantage.
As a global marketer, Luxottica has exposure to local economic and political conditions, import restrictions, and currency exchange rate fluctuations. Read more 

Management

Luxottica is effectively controlled by chairman Leonardo Del Vecchio, who founded the firm in 1961 and owns just over 61% of its shares. Currently Adil Mehboob-Khan and Massimo Vian are serving as co-CEOs while Del Vecchio remains chairman. We like   Read more 

Profile

Luxottica designs, manufactures, and distributes high-quality prescription eyewear frames and sunglasses. The company markets owned brands, including Ray-Ban, Oakley, REVO,  Read more 

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