In addition to its 7,000 retail sto

In addition to its 7,000 retail stores and its roughly 10 production facilities the company owns some of the brands it sells including Ray-Ban which it bought in 1999, Oakley which it bought in 2007, Vogue, Oliver Peoples, Persol, Alain Mikli, Arnette and REVO. These proprietary brands accounted for 70% of frame sales with Ray-Ban and Oakley making up nearly 45% of the sales.

It licenses the other designer brands including Bulgari, Burberry, Chanel, Coach, Dolce & Gabbana, Donna Karan, Paul Smith, Polo Ralph Lauren, Prada, Stella McCartney, Tiffany, Tory Burch, Versace and Armani.

The agreements with these brands are exclusive meaning no other manufacturer can make their glasses. They last from three to ten years.

Luxottica pays the designers a royalty of 5% to 14% of net sales and a marketing fee of 5% to 10% depending on the agreement. Prada and Dolce & Gabbana are the big money-makers for the company making up 3.9% and 2.6% of sales respectively.

Expect more acquisitions and brand license agreements from Luxottica.

In his letter to shareholders, chairman and founder Leonardo Del Vecchio said the company is making a big push in emerging markets particularly in South Asia. It’s targeting double-digit growth in the luxury segment in the premium and luxury brand segment.

The company reports 2nd quarter earnings later this month.