EssilorLuxottica Kicks Off 2023 With Strong Q1 Results, Driven by Global Growth
EssilorLuxottica has reported a strong start to the year, with Q1 earnings up 3% to 6.3 billion euros ($6.7 billion). Despite a challenging comparison, revenue was in line with long-term guidance, driven by positive performances across all regions and businesses. Francesco Milleri and Paul du Saillant, co-CEOs, praised the collective effort behind this success.
The company's DTC sales rose 4.2% worldwide, demonstrating a balanced growth between physical networks and e-commerce. However, sunglasses' performance was weak in the American region, where growth was the slowest at 0.6% to 2.9 billion euros. This region's growth was on par with Q4 2022 and fiscal 2023 results.
Asia-Pacific and EMEA regions showed robust growth, with Asia-Pacific rising 2.4% to 768 million euros and EMEA up 5.8% to 2.3 billion euros. Latin America was the best performing region, with a 6.3% increase to 371 million euros. EssilorLuxottica has also expanded its presence in the Asia-Pacific region through licensing deals for Vogue Eyewear, Arnette, and Persol, and collaborations with Burna Boy and Jean-Paul Gaultier.
HSBC analysts anticipate consistent growth and new product launches to positively impact earnings in subsequent quarters.
EssilorLuxottica targets mid-single-digit annual revenue growth from 2022 to 2026 and an adjusted operating profit of 19-20% by 2026. Despite the American region's slower growth, the company's strong Q1 performance and strategic initiatives position it well to achieve these targets.
