The Italian eyewear manufacturer Luxottica Group S.p.A. creates, produces, and exports eyewear goods globally. Manufacturing and wholesale distribution and retail distribution are the two main segments through which the corporation conducts its operations. Along with producing eyeglasses for numerous high-end and fashion labels, Luxottica also has its own house brands, including Oakley and Ray-Ban.
One can be interested in investing and wonder if they can purchase Luxottica shares. Yes, you can purchase Luxottica shares. Under the ticker LUX, Luxottica Group S.p.A. is listed for trading on the Milan Stock Exchange. There are certain extra steps that American investors must take in order to purchase the shares, though. Using a broker that provides services for foreign trading, like Fidelity or Charles Schwab, is one choice.
But it’s crucial to think about if the optical shop industry is profitable before making an investment. IBISWorld’s analysis shows that during the previous five years, the optical shop industry has grown steadily. According to the study, an older population, greater knowledge of eye health, and a rise in the prevalence of vision impairments have all helped the sector. The sector also enjoys significant profit margins as a result of the markup on prescription eyewear.
So what is the markup on glasses with a prescription? Depending on the merchant and the particular product, the markup on prescription glasses might vary significantly. The markup on frames can be between 120% and 1000%, while the markup on lenses can be between 280% and 1500%, according to a report by the Consumer Reports National Research Center. To calculate the genuine profit margin, the price of production and distribution, in addition to other overhead costs, must also be taken into account.
The optical capture rate is a crucial measure to take into account in the optical shop sector. The percentage of patients who fill their prescriptions at the same place where they had their eye exams is known as the optical capture rate. Jobson Optical Research reported that in 2019, the average optical capture rate in the US was 69%. This measure is significant since it has a direct bearing on an optical store’s profitability.
Lastly, who is the owner of the eyewear market? The biggest eyeglasses firm in the world is Luxottica Group S.p.A. Its portfolio of brands includes Ray-Ban, Oakley, Persol, Vogue eyeglasses, and many more. The company has more than 9,000 locations globally, making it a major player in the retail industry. Johnson & Johnson Vision, Safilo Group, and EssilorLuxottica are a few further significant participants in the eyeglass market.
Investors can purchase Luxottica stock, but before making any investment decisions, it’s crucial to take into account the profitability of the optical store sector, the markup on prescription glasses, the optical capture rate, and the major participants in the eyewear market.