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.
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