EssilorLuxottica Q3 - slightly below expectations

EssilorLuxottica's third-quarter revenue came in slightly below expectations, driven by weak sunglasses sales in North America and tougher economic conditions in Southeast Asia. EssilorLuxottica's shares are up 21.6% in 2024 which is impressive as the luxury sector is going through a bit of a meltdown.

Revenue rose 4% to EUR6.4 billion, just shy of the EUR6.5 billion forecast. North America, which makes up about half of the group's sales, grew only 1.6%, weighed down by challenges at Sunglass Hut, though there were some signs of improvement by September.

In the Asia-Pacific region, sales were up 5%, led by strong growth in China, where sales of Stellest prescription lenses surged 40% year-on-year.

EssilorLuxottica also acquired a 5% stake in Nikon and recently completed a $1.5 billion purchase of streetwear label Supreme to attract younger consumers.

The company is also pushing forward with tech investments, including connected glasses made in partnership with Meta. Speculation about Meta's interest in acquiring a minority stake in the company has swirled, though no deal has been announced.

We like this company.