Guerra: Luxottica grows and takes on new staff

In an interview with Corriere Economia, Andrea Guerra talked about his new appointment in Luxottica, programs, and steps taken in governance.

He began by commenting on the quarterly results (revenues +34,8%, operating profit +13.6%, net +7.3%): 'We have had two-figure growth in wholesale for five quarters; clients in Europe are starting to take decisions. Like Luxottica, we are going through an amazing period with Ray-Ban and the trend is positive for the major licenses. And then there is the prospect of Dolce & Gabbana'.

Guerra then declared that the entry into retail in China is being studied. 'There is not just one market in China, but three: Beijing, Shanghai and the South. Whereas five years ago there were lots of little stores, now there are a few real chains and we thought that the proper way to enter that market would be to obtain one of them (they have 10-20 million dollars in billings) as a basis for gaining experience. We could do it within the year'.

Guerra then talked about China and 'made in Italy' in more general terms. 'A made in Italy product has enormous value and it must be protected by respecting the regulations. For example, we have many brands that must be made here: for eyewear in the very top segment, made in Italy is crucial. But there are other global brands which go to certain segments of consumers, young people for example, who are not interested in where they were made. So the opportunity here is not to move and decentralize what we have in Italy, but to increase our production in China by following future growth'.

Returning to Italy, he added: 'Now we are taking on more people. It is clear that we have to make a distinction. Every healthy company reorganizes, but this does not entail figuring out structural changes, but rather that you have to be more efficient and complete. Every facility must have a clear mission, the proper flexibility. We have over 5 thousand employees in Italy and a panorama of facilities that are not all the same'.

Lastly, when asked about Del Vecchio's 'succession', Guerra commented: 'This is a majority shareholder who in 15 years on the stock exchange has given high, very high returns. He has never betrayed the trust of investors. He put forward his own shares when he decided to bring in management with stock options. When the time comes, our shareholder will find the best way for everyone; and he will be the one to decide. I'm convinced: this company is important to Del Vecchio and he will do everything in the very best way. He is younger than me (on May 22 he'll be 70, Guerra is 39, Ed.), he is full of energy. At the right moment Del Vecchio will make the decision that is right for everyone, from investors to the family'.