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EssilorLuxottica Shares Dip as Murky Outlook Clouds Q3 Sales Beat

Published 22/10/2022, 12:34 am
Updated 22/10/2022, 12:34 am
© Reuters.

By Scott Kanowsky -- EssilorLuxottica SA (EPA:ESLX) shares fell on Friday after the French-Italian eyewear retailer posted better-than-expected third quarter sales, but did not lay out exact estimates for its 2022 trading year.

The sunglasses maker, known in particular for its Ray-Ban brand, reported group revenue of €6.39B for the three months to September 30, an increase of 8.2% year-on-year at constant exchange rates. Analysts at Stifel had predicted a more modest jump of 4.7%.

Asia-Pacific saw the most pronounced surge in sales, growing by 22.7% to €761M. In the prior three-month period, revenue in the region fell slightly.

Aiding this expansion were sales in China, which bounced back from a negative preceding quarter to post higher sales in the mid-teens, thanks in part to fewer COVID-19 lockdowns.

North America, the group's biggest market, also saw solid performance, as August holidaymakers visiting brick-and-mortar stores in popular tourist destinations helped offset a decline in revenue at EssilorLuxottica's LensCrafters prescription eyewear unit.

However, the Stifel analysts flagged that the firm has refused to deliver a precise outlook for 2022, citing uncertainty around the war in Ukraine and broader macroeconomic fears.

Instead, EssilorLuxottica confirmed its previous guidance of mid-single-digit annual revenue growth from 2022 to 2026 at constant exchange rates, along with adjusted operating profit as a percentage of sales in the range of 19% - 20% in 2026.

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