13

Luxottica company

Embed Size (px)

Citation preview

Page 1: Luxottica company
Page 2: Luxottica company

LuxotticaArdaman Gill

Thao Bui

Gaurav Saini

Samir Karimi

Page 3: Luxottica company

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

Page 4: Luxottica company

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

Page 5: Luxottica company

5 YEAR FINANCIAL TRENDS (THAO)

Page 6: Luxottica company

DUPONT ANALYSIS

Page 7: Luxottica company

DUPONT ANALYSIS

Page 8: Luxottica company

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

Page 9: Luxottica company

DEBT MANAGEMENT

Page 10: Luxottica company

INCOME STATEMENT PERFORMANCE

Page 11: Luxottica company

ASSET MANAGEMENT

Page 12: Luxottica company

INTERESTING FACT ?

Luxottica Owns EyeMed, the second largest vision care insurance plan in the United States.

Page 13: Luxottica company

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