ROME—Italian eyewear maker Luxottica Group SpA and U.S. leather accessories brand Coach Inc. Tuesday announced an eyewear partnership expected to add more than $100 million a year in sales.
The move gives Luxottica, the world's largest eyewear maker, further traction in North America and Asia, where Coach is expanding. It also adds a large middle-market label to a portfolio full of high-end brands such as Bulgari SpA and Prada SpA.
"We think there's a lot of opportunity for somewhat accessible luxury today in the global market," said Antonio Miyakawa, executive vice president marketing, creative direction and product at Luxottica.
The multiyear deal, which begins in 2012, signals the end of Coach's existing contract with U.S. producer Marchon. Luxottica offers its own vast retail channel.
It's a good fit as Coach gains access to a global platform to accompany the rollout of its brand, while Luxottica gets a "great add-on to its otherwise very European luxury oriented portfolio," allowing it to avoid the risk of cannibalization, said Erwan Rambourg, an analyst for HSBC in London. He expects Coach to quickly establish itself as one of Luxottica's top five brands, alongside Prada, Chanel and D&G.
Mr. Miyakawa said Luxottica admires Coach's growth in the U.S. and expansion plans in Asia and expected Luxottica to be able to help it grow in Europe, too.
"We're very excited about this partnership, which will combine Coach's distinct design aesthetic with Luxottica's excellent product quality and craftsmanship," Coach Chairman and Chief Executive Lew Frankfort said in a statement.
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