Dive Brief:
- Diesel and EssilorLuxottica have signed a 10-year license agreement for the design, manufacturing and global distribution of eyewear, according to a Tuesday release emailed to Fashion Dive.
- The initial collection made under the exclusive deal will be available beginning in the first quarter of 2025, per the release. The deal is effective immediately with an automatic renewal option of an additional five years at the end of 2029.
- The newly signed licensing agreement builds on the companies’ existing relationship, per the release. In 2022, the two companies launched a 55-piece capsule collection of wraparound glasses.
Dive Insight:
Glenn Martens, Diesel’s creative director, will oversee the development of the new eyewear, which is meant to target “Diesel’s growing base of Gen Z brand builders” with genderless products designed for consumers from diverse backgrounds, per the release.
Diesel parent company OTB said in a recent earnings report that the brand was doing well with younger consumers, and noted that Gen Z made up 35% of Diesel’s customer base.
The partnership with EssilorLuxottica may also play into Diesel’s upscale image. The luxury eyewear manufacturer also produces products for high-end brands including Prada, Ralph Lauren, Chanel, Michael Kors, Coach and Burberry.
“I am very proud of the partnership with EssilorLuxottica, a global leading group that stands out for its extreme quality and exceptional know-how,” Renzo Rosso, chairman of Diesel parent company OTB Group and founder of Diesel, said in the release. “Diesel is becoming one of the coolest fashion brands, and thanks to its modern and inclusivity-driven approach, it's increasingly catching the attention of younger generations.”
Despite challenges elsewhere in the luxury sector, EssilorLuxottica in February posted modest gains for fiscal 2023 with a revenue uptick of 3.7% to 25.4 billion euros, or approximately $27.2 billion.
At OTB, net sales for fiscal 2023 were up more than 9% in fiscal 2023, per a February earnings report. Diesel revenue grew more than 13% for the period.
Eyewear has been a bright spot for luxury companies such as Kering that have otherwise reported tumbling revenues. In May, Kering projected up to a 45% decline for H1 in recurring operating income, but its eyewear division posted a 35% year-over-year increase for fiscal 2023 and reached a record revenue of 1.5 billion euros for the period.
