Luxottica Group (NYSE:LUX) is about to release earnings results. Ponder this Bear Case Scenario:
The trend to laser surgery and contacts is eliminating the need for glasses stylish or otherwise.
Luxottica is a slave to fashion. Fashion is a fickle mistress. Todays hot product is tomorrows discount clearance.
Luxottica needs to replace Sears as a partner. They have not maintained same store sales and are in danger of disappearing off the retail landscape.
Globally they have foreign exchange risks, local economic risks, import restrictions etc etc. This is not an easy business.
George Gutowski writes from a caveat emptor perspective.