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Luxottica Group SpA Message Board

  • Noofnoof Noofnoof Oct 29, 1998 5:15 PM Flag

    I can tell you one place they're losing

    Having once had the pleasure (Not really a
    pleasure but that's the general business of opticianry,
    not LC in particular) of working for Lenscrafters, I
    can tell you a couple of reasons why they're losing
    money: 1.) The optical business caters to the consuming
    public's whims to a ridiculous extent. At LC's the
    customer is no longer king but rather some sort of
    omnipotent god. I used to go crazy as people who bought
    sunglasses (often Armanis)at Nordsrom's would come in to
    have them adjusted for FREE! Paying customers often
    times would be waiting while one of the opticians
    adjusted the nosepads and temples (does take a certain
    level of skill believe it or not, that Nordstroms
    didn't have to pay for) and then even cleaned the lenses
    for the freeloaders. I used to tell the manager how
    ridiculous these freebies were, yet, we would be tacitly
    compelled to accomodate. 2.) In the optical business which
    deals in something as objective as eysight, you cannot
    have "Nordsrom-like" customer service policies and
    expect to keep the doors open. A customer could come in,
    pick out frames, go home to show spouse, and decide
    they didn't like them and Lenscrafters will remake
    them at NO CHARGE! To what extent do you think that
    that's exploited? Another thing, when I worked at LC's
    they had a sign placed at the bottom of the escalator
    in the mall that said "Come on in for Free
    Adjustments". Free, free, free, yet LC's employees make a fair
    wage for the industry (which isn't great but isn't
    minimum wage). There's no other retail business that I
    know of that gives away so much to the non-paying
    public. It's like charity to the undeserving. They pay
    skilled people to do charity work, that's the problem.
    Lencrafters should charge for adjustments, repairs, and
    cleanings performed on frames purchased elsewhere. Charge
    the person a couple of bucks and give them a coupon
    for a few dollars off on their purchase thereby
    making it more likely to get some compensation down the
    line. Anything but cut down on the freebies.

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    • This board is having some fun now!!! It must have been a real slow weedend for you all!!! I wish I could have been here instead.
      OK now somebody can call me a dick now!!!

    • I'm not sure where you are from, but you are
      correct about underpaid opticians, at least in most
      states. An optician can do well in some of the states
      where additional licensing is required. Most states
      just require the ABO, which quite frankly is pretty
      darn easy to pass. States such as Hawaii, Nevada,
      Washington, to name a few require state licenses also, which
      limits the number of opticians out there. My buddy in
      Hawaii has his own little shop, does glasses and
      contacts, and does quit nicely.
      With regards to Lux.
      Bad earnings, probable bad earnings in the 4th
      quarter. Don't understand what happened on Friday to make
      this stock jump almost 20%.

    • I would not get carried away with this upside,
      the stock has been
      there before. Do not expect any
      major rise from here, I would not be surprised to see
      $9 again this week. I've bought & sold
      this stock
      several times this year, it has become one of my
      what's good is that I've always made money. Although I
      have left good money on the table by selling my
      remainig 1200
      shares just one day before it took off, I
      take it easy and watch
      for my next opportunity to
      jump in. You'll get your chance too.
      We've got
      great people in this forum, very knowledgeable
      the business, they have been a great

      Happy investing

    • Thanks for the report. Your information regarding
      Eye-Med is correct. I know for a fact that they will be
      paying better rates than any other managed care plan.
      They will also be permitting better add on charges
      that will encourage the three O's to sign on. Eye-Med
      will not be a profit center for Lux. They're counting
      on making money by selling more frames and that will
      give them a stronger presence in each optical retail
      outlet that signs up, which will also produce more sales
      to non Eye-Med recipients. That will definitely
      bring Lux back to having, unquestionably, the biggest
      market share without even counting

      I had no idea that the stock would shoot up that
      high so soon and had an open sell order at $11.00. So
      right now I'm sitting on nothing at this point as well.

    • Here is a message from an E-mail service that I
      received today:
      (It is probably related to that news
      flash on Reuters that they will be charging $1 for
      adjustments and lens cleanings).

      Sales Up More Than 10 percent in Third

      With its retail sales up, Luxottica reports a rise in
      companywide sales, but
      a dip in net income.

      Italy - Luxottica Group S.p.A. (NYSE:LUX) reported
      sales at its
      LensCrafters chain were up by 10.2
      percent during third-quarter 1998 over
      the same period
      last year. Comp-store sales for the quarter rose by
      percent. For the first nine months of the year, sales at
      LensCrafters rose
      10.3 percent to $846.7 million over the
      same period last year.
      Parent company Luxottica
      reports that its net sales rose by 6.9 percent in
      third quarter to $419.1 million from $392.2 million in
      1997. Net income
      during the third quarter was down
      by 1.9 percent to $32.9 million from
      million during the same period in 1997.
      For the first
      nine months of the year, Luxottica's sales rose by 6.4
      to 1.3 billion from $1.2 billion in 1997. Net income
      during the first nine
      months rose by 2.6 percent to
      $113.5 million to $110.6 during the first nine
      of 1997. (END OF STORY)

      Here is more
      information that I have received, but cannot verify its'
      factuality, yet (But, it comes from a reliable source).
      Lenscrafters is planning to launch a 3rd party insurance plan
      that will be well-received by the 3 O's because it
      will pay far better than most of the present plans
      that we all accept. Their plan, as I have been told,
      is to begin in Philadelphia and Chicago areas at
      first, then, if succesful, Nationwide. My only regret is
      that I was told of all this about 10 days ago when the
      stock was at 8 3/4, but I was my usual stubborn self
      and put my order in at 8 1/2 GTC, so here I sit with
      nothing but my dick in my hands.

    • Don't forget the wholesale end of this whole game.
      Eye Med will force the indie practices to purchase Lux frames in
      order to be on its panel.

    • ......I can only hope that thats not your nic
      name at the optical shop.

      How did you know I
      work at lescrafters ? I actually used to sell womens
      shoes for US Shoe next thing I know, I'm grinding lens
      and adjusting nosepads. This has got to stop. My
      patient's glasses are so bad they can't tell a Nordstrom
      sign from a lencraftrs sign !

      PS on a serious
      note any news ala pro lux question ?

    • You're OK BS. I'm going to break a frame, and try to get them to solder it for free!

    • Pure B.S.
      My friend has an old grandma who's
      nearing the end of her days on earth. Lately she hasn't
      concentrated too much on hygiene. The nosepads of her glasses
      have taken on that nice gooey greenish-gray mess that
      you love so well and she hasn't washed behind her
      ears since the days of Eisenhower. Since you're such
      sport and are offering free-adjustments, please let me
      know at which Lenscrackers you're working so that I
      may send her in to see you. Well, maybe not to see
      you as this is improbable since she got her glasses
      at one of your locations, but to have you work your
      magic on her temples and nosepads. Better fire-up that
      ultrasonic, you're going to need it. Adieu.

      P.S. I
      started this string by giving an honest "opinion" as to
      one reason why Luxottica's earnings were less than
      stellar. In return I was called all sorts of names. Let's
      all grow up here together and start concentrating on
      what this board is all about. Information, not
      defamation. However, if the name calling continues, my poison
      pen will prove far more powerful than all of yours
      combined Really!

    • I always thought that I had a good insight on
      this company, but I find myself puzzled. Almost a
      million shares traded yesterday, I don't remember the
      stock trading in that volume ever.
      One thing I found
      out is that Lux is calling their accounts asking to
      update their information. The only time Lux did that in
      the past was the month they bought US Shoe. They may
      be doing it to announce their managed care

      Any one read or heard any anything about Lux?? Only
      truthful statements please.

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