EssilorLuxottica Upbeat on Mid-Term Targets Despite Slowing Growth
By Joshua Kirby
EssilorLuxottica's revenue growth slowed in the third quarter amid sluggish sales of sunglasses, but the company backed its longer-term financial targets.
The Franco-Italian eyewear giant made total revenue of 6.29 billion euros ($6.63 billion) in the July-September period, 5.2% higher than in the same period last year, adjusted for currency effects. This was in line with analysts' expectations, according to a poll of estimates compiled by FactSet, but slightly slower than in the first half of the year.
Revenue grew most slowly in the group's largest market, North America, where sales of sunglasses continue to drag overall performance. Sales at retailer Sunglass Hut remained lower on year in the region over the quarter, EssilorLuxottica said.
Weakness in sunglass retail also hit the Europe, Middle East and Africa region, the company said, pointing to unfavorable weather in July and August. In Asia-Pacific, however, revenue rose by double digits, despite a tough comparison base after a strong quarter last year.
Looking ahead, the Ray-Ban maker said it remains confident of netting annual revenue growth in the mid-single digits between 2022 and 2026, as well as reaching an adjusted operating margin of 19%-20%.
"We are doubling down on our strengths," said Francesco Milleri and Paul du Saillant, EssilorLuxottica's chief executive and deputy CEO, respectively, in a joint statement. They pointed to a new joint frame-and-lens factory in Thailand as an example of the group's growing global footprint.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
October 19, 2023 12:46 ET (16:46 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
What’s the Difference Between the CPI and PCE Indexes?
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?
-
3 Dividend Stocks for May 2024
-
Amgen Earnings: Obesity Drug Update Is Highly Encouraging
-
What’s Going on With Apple, Tesla, and Alphabet?
-
Apple Earnings: A Weak 2024, but Optimism for 2025
-
4 Utility Stocks to Play the AI Data Center Boom