Many people like a little flutter now and again, be that on the horses, the footy or a certain stock that they fancy. While there aren’t many professional gamblers, there are a lot of people who wither trade or invest in the stock market as either a profession or a retirement fund, and a lot of time and effort goes into analysing these stocks.
Eyewear is a big business these days, and the largest players in the game are multi-million dollar companies, currently estimated to be worth $90bn, and increasing to $140 by 2020. A lot of them are publicly listed on various exchanges around the world, so with our investing heads on we’re going to look at one of these companies and try to decide whether they are a good bet.
The company we’re looking at is Italian luxury eyewear behemoth Luxottica. You may not have heard of them but they manufacture glasses under license for the majority of the brands we know and love, such as Chanel, Prada, Armani, Tiffany and Ralph Lauren. There are also rumours of other licensing deals in the works with large brands such as Calvin Klein sunglasses. As well as that they have performed takeovers of several other high profile brands such as Oakley, Persol and Ray Ban.
So, with a portfolio that covers the ownership of some major brands and licenses to produce glasses for pretty much all the others, Luxottica looks like a strong player. Combine this with the fact that they also produce prescription glasses, and also own some of the largest sunglasses retail outlets such as Sears and Target Optical and Sunglasses Hut then the position looks even stronger.
With the luxury eyewear market looking strong for growth in the coming years with more and more designer brand jumping on the trend, this stock definitely looks like a good pick. A decent upward trend in the stock price and year on year profits rising mean that this is one retail stock we would definitely look to add to our own portfolio.