LuxotticaArdaman Gill
Thao Bui
Gaurav Saini
Samir Karimi
Company background● 1961 by Leonardo Del Vecchio, headquarters in Milan
● 1971, first collection at MIDO, Milan
● 1980, going public on the New York Stock Exchange
● 1981, expanded international
● 6 production facilities in Italy, 3 factories in China, 1 in Brazil, and 1 in USA. Also, has small plant in India
Company background● Wholesale distribution
● 7000 stores worldwide as of Dec 31, 2014
● 83 million prescription frames and sunglasses produced in 2014
● Leader in the prescription business in North America, Asia Pacific, China and in South America
5 YEAR FINANCIAL TRENDS (THAO)
DUPONT ANALYSIS
DUPONT ANALYSIS
Performance
● Profit Margin Grew Significantly, while TATO decreased● The TATO is identical to what the industry average ratio(0.79)● However it was 0.92 the previous year● Due to the decline, the return on equity fell● Based of this we think Luxottica needs needs to improve its asset
turnover and use its assets more efficiently
DEBT MANAGEMENT
INCOME STATEMENT PERFORMANCE
ASSET MANAGEMENT
INTERESTING FACT ?
Luxottica Owns EyeMed, the second largest vision care insurance plan in the United States.
CONCLUSIONLuxottica is a market leader in design, manufacture and distribution of
fashion, luxury, and performance eyewear with net sales of more than Euro 7.6 billion in 2014
Luxottica needs to use its assets more efficiently to generate sales
Days Sales and Fixed asset turnover were decreased from 2013 to 2014
Profit Margin & Operating margin have been gradually increasing over last 3 years
Overall strong growth in the international market
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