September 28, 2022

Gucci proprietor Kering is bolstering its high-end eyewear division with a deal to purchase U.S.-based label Maui Jim, the French luxurious group stated Monday.

European luxurious firms have proven rising curiosity within the eyewear enterprise and have tightened their grip on manufacturing capability amid robust demand for luxurious merchandise.

Kering, which purchased upscale Danish label Lindberg in July final yr, expects the Maui Jim deal to be closed within the second half of 2022.

“This has been a sought-after model for years and it is a vital achievement for (Kering) so as to add this to its rising portfolio, making it now, by a long way, the (No.) 1 high-end participant globally within the house,” Jefferies stated in a analysis word.

Kering stated the acquisition of the Hawaiian eyewear label, recognized for high-end sun shades, would push the group’s annual eyewear revenues above 1 billion euros ($1.1 billion) and enhance its profitability.

The worth of the deal was not disclosed, however Exane BNP Paribas stated the acquisition worth seemingly got here to round 1.5 billion euros, estimating Maui Jim’s annual gross sales at round 300 million euros with working revenue of round 20% in 2021.

The analysts peg the profitability of Kering’s eyewear division at between 13% and 15%.

Kering started constructing an in-house eyewear division in 2014, and wholesale revenues exceeded 700 million euros in 2021.

It makes glasses for its personal labels together with Saint Laurent, Balenciaga and Gucci, in addition to Richemont manufacturers Cartier, Dunhill and Chloe, amongst others.

The group intends to increase Maui Jim’s presence in Europe and Asia, together with by way of the journey retail channel, and use its lens expertise to develop corrective sun shades for style labels, Kering Eyewear’s president and chief government Roberto Vedovotto stated in a name with reporters.

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Rival LVMH stated in December final yr it was taking on Thelios, the upscale Italian eyewear producer it launched with Marcolin in 2017.

($1 = 0.9127 euros)