The stock price of Luxottica Group SpA (NYSE:LUX) (BIT:LUX), the Italian eyewear maker of Ray-Ban and Oakley sunglasses brands, rose nearly 4% to $55.77 per share around 12:29 in the afternoon in New York on Tuesday.
The positive momentum of the stock was primarily driven by its partnership with Google Inc (NASDAQ:GOOG) to design, develop, and distribute new versions of eyewear for Google Glass that combines the elements of fashion, lifestyle, and innovative technology.
According to Luxottica Group SpA (NYSE:LUX) (BIT:LUX), it will collaborate with Google Inc (NASDAQ:GOOG) across multiple efforts to create innovative and iconic wearable devices. The Italian eyewear maker said both companies are “setting the pace in their respective industries and will match up high-tech developers with fashion designers with eyewear professionals.”
Ray-Ban and Oakley brands part of Google Glass collaboration
Luxottica Group SpA (NYSE:LUX) (BIT:LUX) indicated that it will bring Google Glass to its major proprietary brands, Ray-Ban and Oakley sunglasses. The Italian eyewear maker said both brands have 10-year legacy in wearable technology that evolved from MP3 to HUD devices.
In a statement, Astro Teller, vice president and head of Google X said, “Luxottica has built an impressive history over the last 50 years designing, manufacturing and distributing some of the most successful and well-known brands in eyewear today. We are thrilled to be partnering with them as we look to push Glass and the broader industry forward into the emerging smart eyewear market.”
Luxottica anticipates revenue growth
Andrea Guerra, chief executive officer of Luxottica Group SpA (NYSE:LUX) (BIT:LUX) said his company’s partnership with Google Inc (NASDAQ:GOOG) should guarantee an annual revenue growth of 5% to 10%. He estimated that Luxottica’s revenue will increase from 7 billion euros to 10 billion euros. According to him, the new products will be available in the market by 2015.
J.P. Gownder, an analyst at Forrester Research believed, ”Partnering with Luxottica is a huge coup for Google. In one fell swoop, Google could get Glass in front of tens or hundreds of millions of consumers in an eyewear-appropriate setting.”