Luxottica, the beginning of the end?

The title Luxottica began the week with a suspension on the stock exchange after an initial decrease of 10% compared to the previous Friday, in the wake of the resignation of CEO Enrico Cavatorta, appointed less than a month ago after the release of the previous AD Andrea Guerra . By the way, just last week, Cavatorta had sold out to the market 550 thousand shares of Luxottica Delfin, the holding company headed by the entrepreneur Leonardo Del Vecchio.

The Chairman of the Leonardo Del Vecchio, as reported by a press of Luxottica, has proposed to the board of directors to co-opt Massimo Vian, currently COO, with the role of co-CEO entrusted with the powers to the area of ​​operations and product and on an interim basis the proxies for corporate functions and markets.
The statement, issued Sunday night, also confirms the choice of a governance structure based on two CEO. While Vian take the place of Cavatorta, proceeds the process of selecting the co-CEO’s Market “on the basis of a list of high-profile candidates.”

Analysts at Citigroup have reacted to the news by announcing that you have cut the recommendation from buy to neutral, target price reduced from € 38.5 to € 47.

The headline in the morning was then re-admitted to trading, posting declines of between 6 and 8 percent.

A giant Luxottica is suffering as apparently the change of CEO following the exit of Andrea Guerra, in fact, reading analysis and commentary in the press, detro the scenes you read the struggle for succession between wife and 6 children of Leonardo Del Vecchio .

Apart from easy conspiracy, the consideration that springs to mind is the following, it is possible that Italian businesses, made of brilliant ideas and brave entrepreneurs always run the risk of sinking at the time of the change of generation?

I believe that form and define a second generation is really difficult, undecided between wanting to give their children the luxuries not enjoyed and willingness to give continuity.

To date, the facts tell us one thing, to grow the business, does not match the pace of cultural growth, much less a real ability to delegate and objective evaluation of the management.

In Germany, the holders of large groups, all of the third or fourth generation, sit in their board but leave the operations manager formidable because they have a full confidence, to the point that the word for CEO in German, Vorstand, it means people who sits in front of the Board.

In Italy we have the case in the sense of the situation due to chance, Sergio Marchionne, Manager of strength and rare insight, who joined Fiat in the world at a time of such despair, on the part of the property, such as to receive a mandate rare autonomy in Italy.

To this end, I would be curious to know tonight, at the end of the listing on Wall Street FCA, how much business has become in the meantime holder …

Well, the Italian employers’ companies are trying all the white knight to Marchionne, pity though few are really giving him the independence and confidence to …

I hope Luxottica quickly find a new equilibrium, since the action of Kering to produce their own glasses may become isolated if the leading manufacturer and distributor in the world is infilasse in the delirium of a war of succession ….

Big Bang in eye wear 2, the revenge…

The last time we broke with the amazement the termination by Gucci ( part of the group Kering ( of the license agreement for the production and sale of spectacles to switch to produce them for their own.

As expected we begin to see the first reactions.

The manufacturers have been displaced and the reactions are of the type “Yes, Yes, so we will have to go anyway, no one invents manufacturers from day to day ..”

True, but up to a certain point, in fact if I were to create a company that makes glasses today, with the budget of a giant like Kering would think to bring home only the best heads of the following areas:

Product development and modeling

Within Kering we have:

Customer Service and Aftersales
Inbound and outbound logistics
distribution network (in this part, however, because they also serve the specialist shops)
throughout the AFC (Administration, Finance and Control)

This means having big potential synergies 

Well, as far as production is concerned, in reality there is still a supply chain (especially in the Belluno) area of small and medium companies are able to give support on all components, if not all of the product, we think of specialists such as Fedon, leader of the boxes (

Morale, in a scenario that could be construed as fiction, in an industry that moves almost 10 billion euros of turnover (so worth the eyewear business) you might find that the major fashion brands can “get around” the big producers.

It ‘s just a hypothesis, but just because the hypothesis does not rule it in advance.

Clearly, a battleship as Luxottica ( can rely on a dominant position in which the domain of the distribution in the world and 3 specific brands of eyewear in the world of its properties such as Ray Ban, Persol and Oakley.

But even if more than Kering LVMH ( and Richemont ( changed their minds?

Big Bang in eye wear 2 the revenge…

La volta scorsa ci siamo lasciati con lo stupore per la disdetta di Gucci ( ) parte del gruppo Kering  ( del contratto di licenza per la produzione e vendita degli occhiali per passare aprodurli per conto proprio.

Come previsto iniziamo a vedere le prime reazioni.

Le aziende produttrici sono rimaste spiazzate e le reazioni sono del tipo “Sì, Sì tanto dovranno passare comunque da noi, non ci si inventa produttori da un giorno all’altro..”

Vero ma sino ad un certo punto, infatti se dovessi costiuire una società produttrice di occhiali oggi, con il budget di un colosso come Kering penserei a portare a casa le migliori teste delle seguenti aree:

  • Sviluppo prodotto e modelleria
  • Acquisti
  • Pianificazione

All’interno di Kering abbiamo già:

  • Stile
  • Customer service ed After sales
  • Logistica inbound ed outbound
  • rete distributiva ( questa in parte perchè comunque servono anche i negozi specialisti)
  • tutta la parte AFC ( Amminiastazione, Finanza e Controllo)

Questo significa avere delle potenziali sinergie non da poco

Bene, per quanto concerne la produzione, in realtà esiste ancora una filiera ( specialmente nel Bellunese) di aziende medio piccole in grado di dare supporto su tutti i componenti ,se non su tutto il prodotto, pensiamo a specialisti quali Fedon, leader degli astucci (


Morale, in uno scenario che potrebbe essere inteso come fantascientifico in un settore che muove quasi 10 mld di Euro di fatturato ( tanto vale il business degli occhiali ) ci si potrebbe ritrovare che i grandi brand della moda possano “aggirare” i grandi produttori.

E’ solo un ipotesi, ma proprio perchè ipotesi non la scarterei a priori.

Chiaramente ,una corazzata come Luxottica ( ) può contare su una posizione dominante in cui ha il dominio della distribuzione nel mondo e 3 brand specifici del mondo dell’occhiale di sua proprietà quali Ray Ban, Persol ed Oakley .

Ray Ban RB 4165 601_8Goakley-radarlock-custom-celeste-black01-persol2

Ma se oltre Kering anche LVMH ( e Richemont ( cambiassero idea?