Luxottica has lured Ralph Lauren away from rival Safilo. The fashion house has signed a 10-year license agreement with the luxury eyewear manufacturer. As soon as Ralph Lauren's contract with Safilo ends at the end of this year, Luxottica will step in. The two Italian manufacturers battle for business in an industry where they are masters and make almost all of the world's high-end branded sunglasses under license. The switch is a big blow for Safilo, who even opened a flagship Ralph Lauren store in Manhattan , which will now be taken over by Luxottica. Furthermore, Ralph Lauren was one of Safilo's biggest sources of revenue.

“Ralph Lauren is a brand that is extremely strong in North America and in Asia and we have the opportunity to do so much more in Europe ,� Luxottica chief executive Andrea Guerra told the FT. He said that this recent deal had strengthened the company's portfolio. Ralph Lauren sunglasses generate annual sales of about €100 million (£68 million), which represents about 10 percent of Safilo's revenues. Luxottica intends to grow those sales by at least 50 percent over the next 10 years and aims for revenues of $1.75 billion (£1 billion) over the 10-year span of its contract. Luxottica paid Ralph Lauren €200 million in royalties up front, something Safilo is unable to do with is weaker balance sheet.