By Andrea Figueras
Ray-Ban maker EssilorLuxottica is scheduled to report results for 2024 on Wednesday. Here is what you need to know.
SALES FORECAST: The European eyecare giant is expected to report revenue of 26.43 billion euros ($27.24 billion) for 2024 as a whole, according to a poll of 15 analysts' estimates compiled by Visible Alpha. In 2023, the company booked revenue of 25.40 billion euros. For the fourth quarter alone, analysts expect revenue of 6.68 billion euros, up from 6.25 billion euros in the prior-year period.
NET PROFIT FORECAST: Analysts project full-year net profit of 2.50 billion euros, according to the same consensus, up from 2.29 billion euros in 2023.
Shares have jumped 47% over the past 12 months and are nearly 18% higher since the start of the year.
WHAT TO WATCH
--RAY-BAN META: EssilorLuxottica extended a partnership with Meta Platforms to develop smart eyewear products with a new long-term agreement. The glasses maker is focused on improving product features, including battery and new designs, but could also launch new brands in its smart-glasses push, Jefferies analysts said in a research note. Given Meta's ambitions in wearables, a broadened partnership or shareholding could be possible, the analysts said. In July, The Wall Street Journal reported that Meta was in talks to buy a stake of about 5% in EssilorLuxottica.
--U.S. TARIFFS: The company could be hit by U.S. tariffs on imported goods from Mexico and China, UBS analysts said in a research note. Around 43% of group sales come from the U.S., with the majority of the product imported, according to UBS estimates. The analysts assume 18% of sourcing from China, and 2% from Mexico. The potential 25% tariff on Mexico imports is bad news, as EssilorLuxottica just opened a large production site in the country to service the U.S. market, the analysts said. The group invested in the development of a facility in Tijuana and has been growing in Chihuahua.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
February 11, 2025 09:50 ET (14:50 GMT)
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