De Rigo
Italian group at the forefront of the high-quality sunglasses field. In terms of volume, it ranks second in the world, with 30,000 pieces a day. It was established in 1978 by Ennio De Rigo as a simple workshop in Pozzale di Cadore. After 20 years of activity, these the results: 670 models spread over several proprietary brands (Police, Sting, Vogart, Rolling, Charme, Old Italy, and the historic Lozza, created in 1878 and acquired in 1993), brands under license (Fendi, von Fürstenberg, Martini Racing, Fila, and La Perla), and in partnership (as with Prada, since February 19990; 40,000 points-of-sale in 80 countries; 7 production plants; 1,100 employees; and a consolidated turnover, in 1998, of more than 203 billion liras, of which 70% comes from abroad. In 1998, the Group, with headquarters in Longarone (Belluno), acquired the Vantios Group, owner of a chain of 390 shops in England.
The company, quoted on the NYSE, acquires the store chain General Optica, a leader in Spain and the U.S.
The first nine months of the year close with a turnover of 666.4 billion liras, an increase of 40.9%. In 1999, sales had been steady at around 473 billion liras. The growth was due to a new contribution from the Spanish General Optica and from Eyewear International Distribution, a joint venture for the marketing and distribution of Prada-branded eyewear, of which De Rigo owns 51%.
The luxury giant LVMH strengthens its partnership with De Rigo by acquiring 5% of its shares. De Rigo opens a subsidiary in eastern France called Oyannax. Starting in Autumn it distributes Givenchy, another LVMH brand, which joins Loewe, Céline, and Fendi as brands for which the Italian group already manufactures and distributes glasses.
De Rigo acquires the new Furla license. It is to manufacture and distribute sunglasses and frames under the brand of this Italian company that is famous around the world for its shoes, accessories, bags, jewellery, and watches. Furla is present in 64 countries with 178 single-brand stores and kiosks.
De Rigo repurchases its own shares. The company’s board of directors will submit to the shareholders a repurchase plan for part of the issued shares, including those offered at the NYSE in the form of American Depository Receipts. The proposed plan covers a maximum of 4.4 million shares, or about 10% of the outstanding stock. If approved, it will set a minimum and maximum share price and a time period for acceptance. At present, De Rigo owns the brands Police, Sting, and Lozza and owns licenses for the manufacture and distribution of Etro, La Perla, Fila, Onyx, and Furla. It is present in the British market with Dollond & Aitchison.
The profit for 2002 amounts to €10.6 million, compared to €21.2 million in 2001. The strong growth of General Optica in Spain is balanced by a decrease in profits at Dollond & Aitchison in the U.K., in wholesale distribution, and at EID, the joint venture with Prada.
The turnover is €504.8 million, a decline of 1.5% compared to the €512.5 million of 2002. At constant exchange rates, the turnover would have grown by 3.5%. However, the net profit is improved, going from €10.6 million to €18.5 million, an increase of 74.5%.
A two-year license agreement with the BMW group is signed. It calls for the production and distribution of eyeglasses and sunglasses under the Mini brand.
A world-wide license is signed with Escada, for the production and distribution of eyeglasses and sunglasses. “With Escada we have integrated our portfolio, adding a high-level brand with a strong global image, at the same time strengthening our position in the luxury and high-quality segment,” declared Ennio De Rigo.
De Rigo purchases 5% of its own shares from the Prada group.
A cross-licensing contract with Viva, the American glasses manufacturer. The brands under license at Viva are Tommy Hilfiger, Guess, and Gant, and will be distributed by De Rigo in Italy and Greece. The De Rigo brands Givenchy, Etro, Fila, and Furla will be distributed by Viva in North America.
A world-wide license agreement with Chopard, a maison that manufactures watches and jewellery for the high end market, for the production and distribution of eyeglasses and sunglasses.
The turnover is €514.4 million, an increase of 1.9% compared to the €504.8 million of 2003. The gross operating margin has grown 7.5% to €55.7 million euros, compared to €51.8 million in 2003.
De Rigo obtains from Ermenegildo Zegna a world-wide license for the development, production, and distribution of a line of eyeglasses and sunglasses for men.
A license agreement with Jean-Paul Gaultier for the production and distribution of eyeglasses and sunglasses. “The agreement with Jean-Paul Gaultier expands and strengthens our portfolio of brands and offers an opportunity for growth with the most daring consumers,” says Ennio De Rigo.