By Andrea Figueras
Ray-Ban maker EssilorLuxottica is scheduled to report results for the third quarter on Thursday. Here is what you need to know.
SALES FORECAST: The European eyewear group is expected to report quarterly revenue of 6.58 billion euros ($7.17 billion), according to a poll of estimates by 8 analysts compiled by Visible Alpha. The company posted revenue of 6.29 billion euros in the prior-year period.
Shares in EssilorLuxottica jumped roughly 18% since the start of the year through Wednesday's afternoon trade, and moved up around 30% in the past 12 months.
WHAT TO WATCH
--REGIONAL PERFORMANCE: The company is expected to report growth in all markets, but it could face a slowdown in Asia, mainly due to a volatile consumer environment in China, JP Morgan analysts wrote in a note. The country is grappling with a number of economic woes, leading Chinese consumers to close their wallets. Like other luxury groups, the company--which has licenses for some of the most important luxury brands including Chanel, Prada, Armani--is expected to be hit by dented consumer sentiment in China. However, EssilorLuxottica still stands out as more resilient, the analysts said.
--SUNGLASSES: Another key topic for investors might be the company's sun business in the U.S. The group has been grappling with a slowdown in the country due to sluggish sales of sunglasses, mainly on the back of unfavorable weather. The company could experience sustained pressure in the business as flagged by some of its peers throughout August, JP Morgan said.
--PRODUCT INNNOVATION: The group recently announced a new long-term agreement with Meta Platforms, deepening a push into smart eyewear. Product innovation and more partnerships will be in focus, JP Morgan said. With the continuing innovation pipeline further strengthened with the extended partnership with Meta, EssilorLuxottica seems well-positioned to benefit from positive trends in eyewear, the analysts said.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
October 16, 2024 08:02 ET (12:02 GMT)
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