Luxottica and Michael Kors announced a new exclusive 10-year license agreement under which Luxottica will design, manufacture, and distribute prescription frames and sunglasses for Michael Kors beginning spring 2015. Michael Kors had previously worked with smaller eyewear manufacturer Marchon since 2004.

The agreement is positive for both Luxottica and Michael Kors. With regard to Luxottica, we view the agreement as further validating the company’s leading position among global eyewear companies as it relates to the company’s design capabilities, premium and luxury brand portfolio, manufacturing scale and expertise, marketing prowess, and wholesale and retail distribution.

Luxottica will have opportunities to expand the penetration of Michael Kors eyewear substantially across multiple geographies, both among wholesale accounts and in Luxottica’s own retail stores. The retail distribution is in addition to the current distribution in Michael Kors stores, department stores, optical locations, and travel retail.