Growing demand for vision correction should boost sales of Ray Bans and other eyeglasses, EssilorLuxottica said on Wednesday, with profits also driven by cost cuts of up to 600 millions euros a year from 2022.
The Italian jeweller’s renewal for a three-year term will be effective on January 1 2021, when the current agreement will expire, and extend to December 31 2023, with a focus on emerging markets, Asia and the USA.
EssilorLuxottica's shareholders have rejected the appointment of two new independent directors to the board of the Franco-Italian eyewear group, raising fresh doubts over whether a management crisis has been resolved.
EssilorLuxottica declared an end to a damaging feud between its French and Italian partners on Monday, saying it would focus on finding a new chief executive and integrating the eyewear group formed by a merger.
EssilorLuxottica posted higher first-quarter sales and maintained full-year targets on Tuesday, just days ahead of an annual meeting where investors are expected to voice frustration over a leadership row at the firm.
French-Italian eyewear group EssilorLuxottica has hired two headhunters to search for a new chief executive officer in a bid to cool a conflict between its French and Italian partners over leadership of the company.
A row over who is in charge at EssilorLuxottica could drag on for over two years after the recently merged group’s executive chairman filed an arbitration request after alleged violations of a power-sharing agreement.
A proposal by EssilorLuxottica’s top shareholder and executive chairman to transfer some of its functions to Luxottica’s current CEO, is not in the merger agreement of the two companies, said Essilor on Wednesday.