Luxottica Group, S.p.A. (LUX)

Since the acquisition of Sunglass Hut in 2001, Luxottica has become the world leader in the sun retail business.

As of December 31, 2008, the Group operated 2,286 retail locations worldwide, mostly under the Sunglass Hut brand.

Sunglass Hut is the world’s leading specialty retailer of sunglasses. As of December 31, 2008, Sunglass Hut had 1,969 retail locations worldwide.

In addition to 1,565 retail locations in North America, Sunglass Hut now has 216 stores in Asia-Pacific, 82 in Europe, 68 in South Africa and 38 in the Middle East, the latter operated by a local franchise partner. The chain has recently entered two important emerging markets, Thailand and India, where the Group has major plans for medium-to long-term growth.

Founded in the United States in 1971 to operate in department stores, Sunglass Hut gradually expanded its base of stores and kiosks in shopping malls to new retail locations on city shopping streets and in airports.

While it was phasing out its stand-alone watch business, Sunglass Hut focused increasingly on selling premium sunglasses, a market in which it is now a recognized leader, partly due to its exclusive new store concept, which is being extended to all its prime locations around the world. This repositioning was also made possible by substantial changes to the product mix allowing the chain to focus on fashion and luxury brands, especially for women. As a result, sales of Luxottica products in Sunglass Hut stores in 2008 rose strongly against pre-acquisition levels, from around 14% of net sales in April 2001 to around 80% of net sales, including Oakley products.

ILORI is Luxottica Group’s brand new high-end fashion sunwear retail brand, with 16 stores in the United States as of December 31, 2008, including flagship stores in the SoHo neighborhood of New York City and in Beverly Hills, California.

ILORI caters to a different, more exclusive clientele than Sunglass Hut’s, offering a richer purchasing experience in prestige locations, featuring sophisticated luxury collections, exclusive niche brands and highly personalized service.

First established in 1985, Bright Eyes is one of Australia’s largest and fastest growing sunglass chains, with over 140 sunglass stores across the continent.

As of December 31, 2008, Bright Eyes operated 49 corporate store locations and 92 franchise locations, mostly in tourists resort and high-traffic areas.

As of December 31, 2008, the Group operated 140 Oakley “O” stores and Vaults worldwide, offering a full range of Oakley products including sunglasses, apparel, footwear and accessories. These stores are designed and merchandised to immerse consumers in the Oakley brand through innovative use of product presentation, graphics and original audio and visual elements.

In the United States, Oakley “O” stores are in major shopping centers and usually Oakley’s retail operations outside the US are mostly franchised and are located in Mexico, Europe and Asia-Pacific.

Another important sales channel is the Oakley website (www.oakley.com), which is complementary to its retail operations and international distribution. It allows consumers to purchase Oakley products as efficiently as possible, increasing awareness of the Oakley brand, improving customer service and communicating the brand’s values and essence.