EssilorLuxottica confirms outlook despite tariff impact
The Franco-Italian group posted quarterly sales of 6.85 billion euros ($7.78 billion) and reaffirmed its target of mid-single-digit percentage growth in annual revenue between 2022 and 2026 at constant exchange rates, with a goal of 27-28 billion euros by the end of the period.
It also confirmed it expects adjusted operating profit equal to 19% to 20% of revenues by 2026, compared to 17% at the end of last year.
It did not provide details on the expected impact from U.S. President Donald Trump 's import tariffs.
The company, which makes lenses and sunglasses in Thailand and China and exports premium frames from Europe, is exposed to potential tariffs of up to 36% on Thailand-made products and 145% on those from China, and up to 20% on imports from Europe.
While most of Trump's tariffs have been paused for 90 days until July 8, those on Chinese imports and a 10% universal rate remain in place.
Analysts have said the trade measures are weighing on the company's margins and may prompt further adjustments to its supply chain.
The group's quarterly sales in the Asia-Pacific region, its fastest growing market, grew by a yearly 10.4% at constant rates, helped by rising demand for its myopia management solutions, a growing offering which Jefferies analysts expect to achieve 25-35% annual growth in the foreseeable future.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
6 minutes ago
- Euronews
Trump warns EU: 35% tariffs if $600bn investment pledge unfulfilled
A controversial investment pledge forming part of the EU-US trade deal will need to be honoured by the EU or 35% blanket tariffs will be applied to the bloc, US President Donald Trump has warned. On Tuesday President Trump was quizzed on the deal he agreed by handshake with Commission President Ursula von der Leyen in Scotland on 27 July on CNBC's 'Squawk Box' via phone. He touted the US position - which a White House fact sheet stated - that the agreement included a pledge for the EU to invest $600 billion in the US by the end of his second term. "This new investment is in addition to the over $100 billion (that) EU companies already invest in the United States every year," the fact sheet stated following the deal. The European Commission is unable to design and implement investments on behalf of the private sector. The $600 billion has been described by the Commission as an indication based on the executive's contacts with industry. "It's not something the EU, as a public authority, can guarantee – it's something based on the intention of private companies," a senior official said last week. Asked on Squawk Box what teeth there were in the investment pledge element of the deal, Trump said, if it didn't happen, 'then they pay tariffs of 35%'. Trump said that the investment pledge was one of the reasons he had dropped tariffs to a blanket 15% rate, so if it is unfulfilled then higher tariffs will click back in. The EU has been approached for comment. The Commission on Tuesday suspended a package of trade countermeasures targeting €93 billions' worth of American goods which was scheduled to take effect on 7 August, as it continues to negotiate a joint statement formalising the agreement struck by von der Leyen and Trump in Scotland.
France 24
38 minutes ago
- France 24
Trump signals tariffs on pharma, chips as trade war widens
Trump's latest comments, in an interview on CNBC, come days before a separate set of tariff hikes takes effect on dozens of economies later this week. The sweeping tariff plans have sparked a flurry of activity as governments seek to avert the worst of his threats -- with Switzerland's leaders heading to Washington on Tuesday in a last-minute push to avoid punitive duties. But he appears set to widen his trade wars further. The US president told CNBC that upcoming tariffs on imported pharmaceuticals could reach 250 percent, while adding that he plans for new duties on foreign semiconductors soon. "We'll be putting (an) initially small tariff on pharmaceuticals, but in one year, one-and-a-half years, maximum, it's going to go to 150 percent," Trump said. "And then it's going to go to 250 percent because we want pharmaceuticals made in our country." Trump also said that Washington will be announcing tariffs "within the next week or so." He added: "We're going to be announcing on semiconductors and chips." Concern for US economy Trump has taken aim at products from different countries with varying tariff rates after imposing a 10-percent levy on almost all trading partners in April -- with excluded products targeted by sector. While Swiss leaders are seeking to stave off a US tariff hike to 39 percent come Thursday -- which excludes sectors like pharma -- Trump's plans for a steep pharma levy will likely be a point of contention in any talks. Pharmaceuticals represented 60 percent of Swiss goods exports to the United States last year. Besides probing pharmaceuticals and chips imports, Trump has already imposed steep duties of 50 percent on imports of steel and aluminum, alongside lower levels on autos and parts. In the same CNBC interview, Trump said he expects to raise the US tariff on Indian imports "very substantially over the next 24 hours" due to the country's purchases of Russian oil. This is a key revenue source for Moscow's military offensive on Ukraine. His pressure on India comes after signaling fresh sanctions on Moscow if it did not make progress by Friday towards a peace deal with Kyiv, more than three years since Russia's invasion. Moscow is anticipating talks this week with the US leader's special envoy Steve Witkoff, and the Kremlin has criticized Trump's threat of raising tariffs on Indian goods. Weak employment data last week pointed to challenges for the US economy as companies take a cautious approach in hiring and investment while grappling with Trump's radical -- and rapidly changing -- tariffs policy. The tariffs are a demonstration of raw economic power that Trump sees as putting US exporters in a stronger position while encouraging domestic manufacturing by keeping out foreign imports. But the approach has raised fears of inflation and other economic fallout in the world's biggest economy.
Fashion Network
an hour ago
- Fashion Network
India accuses EU, US of double standard over Russian trade
India has sharply criticised the US and the European Union, saying it is being unfairly singled out by them over its Russian oil purchases when they both trade extensively with Moscow despite the war in Ukraine. India's criticism followed a renewed threat by US President Donald Trump on Monday to raise tariffs on goods from India over its Russian oil purchases, deepening the trade rift between the two countries. In a rare show of unity, Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) and the main opposition Congress on Tuesday condemned Trump's repeated criticism of New Delhi. India's Foreign Ministry said in a statement issued late on Monday that "it is revealing that the very nations criticising India are themselves indulging in trade with Russia". The US embassy and the EU's delegation in New Delhi did not immediately respond to a request for comment. Both the US and EU have sharply scaled back their trade ties with Russia since it launched a full-scale invasion of Ukraine in February 2022. In 2021, Russia was the EU's fifth-largest trading partner, with goods exchange worth 258 billion euros, according to the EU executive European Commission. The sudden rift between India and the US has been deepening since July 31, when Trump announced a 25% tariff on Indian goods being shipped to the US and for the first time threatened unspecified penalties for buying Russian oil. India is one of the biggest buyers of crude from Russia, importing about 1.75 million barrels per day from January to June this year, up 1% from a year ago. India has said it does not support "unilateral sanctions" by the EU. Trade experts say Trump's tariff could badly hurt India's economy. Ajay Srivastava of the New Delhi-based Global Trade Research Initiative said he expected Indian goods exports to the US to fall 30% in the current fiscal year ending March 31, to 60.6 billion dollars from 86.5 billion dollars in the 2025 fiscal year. India's equity benchmarks fell after Trump's renewed threat of harsh tariffs on goods from India. Manish Tewari, a member of parliament and Congress leader, said Trump's "disparaging remarks hurt the dignity and self-respect of Indians". "The time has come to call out this constant bullying and hectoring," he added. BJP Vice President Baijayant Jay Panda quoted Henry Kissinger - the most powerful US diplomat of the Cold War era - in a post on X: "To be an enemy of America can be dangerous, but to be a friend is fatal."
