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EssilorLuxottica sees 'slight deceleration' in Q3 vs first half

Published 19/10/2023, 18:14
© Reuters. FILE PHOTO: A logo of EssilorLuxottica exhibition space is displayed at SILMO in Villepinte, near Paris, France September 24, 2022. REUTERS/Benoit Tessier/File Photo

(Reuters) -Luxury eyewear maker EssilorLuxottica on Thursday reported third-quarter revenue of 6.3 billion euros ($6.68 billion) with Asia-Pacific sales growth of 11.75% bolstered by China.

The third quarter was a "slight deceleration" compared to the first-half due to a weaker sun (glasses) retail business in the EMEA region and North America, the Ray-Ban owner said in a statement.

"As one would typically find in a slower market, optical leads while sunglasses lag," said Bernstein in a note following publication of EssilorLuxottica's results.

Shares of luxury goods companies have come under pressure as cash-strapped consumers cut spending on high-end goods, while growth has also been slowing in China.

French luxury company LVMH (EPA:LVMH) last week reported slower sales growth in the third quarter.

"China was the best performing country effectively leveraging its myopia control portfolio in the back-to-school season," EssilorLuxottica said, adding that the country's retail performance continued to be "favourable".

EssilorLuxottica reiterated its 2023 target of "mid-single-digit annual revenue growth" from 2022 to 2026 and an operating profit representing 19% to 20% of revenue by the end of that period.

($1 = 0.9431 euros)

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