Many long-term investors were particularly unsure about stock options in the wake of the Brexit vote in the UK, and even a couple of months on, we’re still waiting to see how the triggering of Article 50 will impact businesses, both in Britain and internationally.
Despite the turmoil and uncertainty in the markets however, many investors remain bullish about some of the bigger brands, and luxury eyewear giant Luxottica appears to remain a good option for long-term focused investors, although the price remains fairly high.
So what makes Luxottica such a tempting investment option? There are two main factors:
- Strong portfolio of brands. Luxottica have spent a lot of time and money building an envious portfolio of luxury eyewear brands, including some of the most famous brands in the world. Luxottica own Ray-Ban, Persol and Oakley sunglasses, and they have licensed brands such as Armani, Bulgari, Prada, Chanel, Dolce & Gabbana and Michael Kors.
- Efficient vertically integrated structure. Luxottica manages every stage of the product cycle, from design and production through to retail. Their retail network is particularly strong, including brands such as Lens Crafters, Sunglasses Hut International Target Optical, Search Optical and scores of others.
The range of brands and extremely efficient vertical structure makes them particularly resilient, even in the face of uncertain economic conditions. Recent marketing and promotion campaigns have also resulted in strong sales, suggesting a continued period of growth for the brand.
Of course this is all just personal opinion, and there are certainly cheaper stocks available to buy, but for the long-term investor, there are few companies as resilient and well established for continued growth as Luxottica (NYSE: LUX) (OTC: LUXGF).