Luxottica has announced the conclusion of a 5-year license for the design, production and sale worldwide of Donna Karan and DKNY eyewear, starting next January, replacing Marchon whose contract expires at the end of this year. The Italian group expects to generate sales of about €70 million from these two lines in the first 12-month period. Luxottica has also extended from December 2006 to December 2010 the scheduled expiration of its licensing contract for Bulgari eyewear.
While Marchon will no longer sell Donna Karan eyewear, the big American frame supplier has taken over Michael Kors' hot Michael license for the whole world from Charmant, starting with a line that will be shown at Vision Expo in Las Vegas next September. Marchon will also extend its more luxurious 13-year-old Fendi license for North America to cover the rest of the world, which has been handled by De Rigo until now, starting next January. Marchon will continue to develop and produce the line at its Italian plant.
According to well-informed sources, De Rigo will make up for the loss of the Fendi license by taking over the Escada license previously held by Airess, the French company that was recently liquidated. De Rigo's prospective partner, Viva International, would sell De Rigo's Escada sunwear in US department stores and duty-free shops for three years while Tura would continue to license specific Escada ophthalmic frames for the North American market.
Other former Airess licenses except Jean-Paul Gaultier and John Galliano have apparently found new takers. Allison would take over the Dunhill license and Menrad would taken on Morgan. As previously reported, L'Amy is the new licensee of Kenzo eyewear and Eden Park has gone to its subsidiary Grasset.
Meanwhile, Allison has obtained the Missoni ophthalmic and sunglass license previously held by Neostyle. The first collection is due to be showcased at the next SILMO fair in Paris. The goal is to generate revenues of €60 million during the 5-year duration of the contract, including €8-10 million in the first year. Allison says its total sales jumped by about 50 percent in the first half and should reach €90 million for the full year as compared to €58 million in 2003.