Ray-Ban maker EssilorLuxottica confirms outlook, to raise US prices due to tariffs
(Reuters) -Ray-Ban maker EssilorLuxottica (EL.PA) on Wednesday confirmed its forecasts through 2026 but also said it was implementing measures including U.S. price increases to manage the impact of import duties in that country.
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.
"Clearly we're not immune to tariffs; we make about 43% of our revenue base in the U.S.", Chairman and CEO Francesco Milleri told analysts in a post-earnings call.
"We're moving toward the price adjustment in the single-digit territory in the U.S. across the different product lines and across our distribution channels", Milleri said.
He added that the company would continue diversifying its supply chain.
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.
The Franco-Italian group 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 ($30.6-31.7 billion) 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.
In the first quarter, EssilorLuxottica posted a 7.3% increase at constant rates in its revenues, to 6.85 billion euros, helped by gains in Europe and the strong performance of its Ray-Ban Meta smart glasses, it said.
Quarterly sales in the Asia-Pacific region, the group's 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.
"EL has largely delivered against a high consensus bar in our view, with robust revenue growth in a tough consumer marketplace," RBC said in a note.
($1 = 0.8810 euros)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
TransMedics Group, Inc. (TMDX): A Bull Case Theory
We came across a bullish thesis on TransMedics Group, Inc. on Global Equity Briefing's Substack by Ray Myers. In this article, we will summarize the bulls' thesis on TMDX. TransMedics Group, Inc.'s share was trading at $118.97 as of July 31st. TMDX's trailing and forward P/E were 59.75 and 62.11 respectively according to Yahoo Finance. A surgeon in a modern operating theatre performing a transplant surgery with medical technology. TransMedics is revolutionizing the organ transplant ecosystem through its Organ Care System, a technology designed to keep organs warm, oxygenated, and viable far longer than traditional cold storage. By tackling key bottlenecks—organ degradation, low utilization rates, and logistical constraints—Organ Care System significantly extends transplant windows and boosts usage rates. Clinical trial data highlights its transformative potential: expanded criteria lungs and hearts saw utilization jump to 87% and 81%, respectively, while DCD heart use rose from 0% to 89%. TMDX monetizes this impact through a razor-and-blade model—selling Organ Care System consoles and high-margin, single-use consumables—while providing end-to-end services through its National Organ Care System Program, a SaaS-like Organs as a Service platform. With 21 private jets, 17 procurement hubs, and trained staff, TMDX handles organ retrieval, transport, and maintenance, positioning itself as a logistics powerhouse in the transplant chain. The opportunity is vast: U.S. underutilization alone represents a $400M+ annual consumables revenue potential, and TMDX currently serves just 3% of the $39B global market expected by 2034. Future growth catalysts include a kidney Organ Care System by 2029, entry into international markets via a $200M facility in Italy, and scaling the National Organ Care System Program globally. Financially, the company achieved profitability in 2024, posting $441M in revenue and positive operating cash flow, though free cash flow remains negative due to capex-heavy expansion. Trading at a P/E of 91, investor returns hinge on continued execution, EU rollout, and successful kidney platform launch. If goals are met, the stock could double by 2030, but slower expansion or margin compression may limit upside. Previously, we covered a on TransMedics Group, Inc. by Oliver | MMMT Wealth in May 2025, which highlighted warm perfusion technology, strong execution, and real-time flight data as revenue indicators. The company's stock appreciated ~24% since Q1 outperformance played out. Ray Myers shares a similar view but emphasizes the SaaS-like NOP model and global expansion potential. TransMedics Group, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held TMDX at the end of the first quarter which was 29 in the previous quarter. While we acknowledge the potential of TMDX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
The Hill
2 hours ago
- The Hill
US deadlines in Ukraine are a gift to Putin and Xi
President Trump's announcement this week of a shortened window of '10 to 12 days' for Russian President Vladimir Putin to reach a ceasefire agreement in Ukraine reflects a continued evolution in his rhetoric. His growing frustration with Moscow and his willingness to speak plainly about Russia's escalation send a signal that many in the U.S. and Europe have been waiting to hear. But while the shift in tone signals growing frustration, it has not translated into action. Russia reads the action as a continued pause in pressure, which it has used to intensify its offensive against Ukrainian homes and hospitals. Russian forces are now making their fastest territorial gains in more than a year, and their attacks are becoming more sophisticated. Swarm tactics using Iranian-designed Shahed drones, now mass-produced and adapted inside Russia with Chinese parts, are overwhelming Ukraine's air defenses at an alarming rate. In just one day last month, Russia launched 728 drones, decoys and missiles in a single coordinated wave. Ukrainian interceptors and radar crews are doing heroic work, but they are stretched to the limit. The U.S. has tools at its disposal that remain unused. For months, a bipartisan sanctions bill, co-authored by Sens. Lindsey Graham (R-S.C.) and Richard Blumenthal (D-Conn.) and backed by 85 senators, a veto-proof majority, has been ready to move. The legislation would impose steep secondary tariffs on countries like China, India and Brazil that continue to buy Russian oil and gas, and would significantly raise the cost of doing business with Moscow. But in July, Senate leadership pulled the bill from consideration after President Trump suggested he would act if Russia failed to move toward peace within 50 days. Senate Majority Leader John Thune (R-S.D.) said he would 'hold off' on advancing the bill, signaling that Congress would defer to Trump's timeline. House leaders followed suit. That decision was a mistake. While it is encouraging to see President Trump express increasing resolve, deferring congressional action in the hope that Putin will suddenly negotiate has only given Moscow more time and space to escalate. Every week of delay is a missed opportunity to tighten the financial pressure on Putin's war machine. And the clock is not just ticking in Ukraine. The broader contest involves China, too. Beijing's role in this war has become increasingly visible. Chinese companies are supplying entire weapons systems, not just components. Chinese-made drones and decoys are helping Russia saturate Ukrainian airspace. Chinese officials have even welcomed delegations from occupied Ukrainian territories and continue to sell heavy machinery to companies operating there. European officials report that China's foreign minister recently told the EU that Beijing does not want Russia to lose the war and fears that a Russian defeat would allow the U.S. to focus more squarely on Asia. Ukraine has responded accordingly. In early July, Kyiv arrested two Chinese nationals on espionage charges after they allegedly attempted to steal information about Ukraine's Neptune missile program. Days earlier, President Volodymyr Zelensky imposed sanctions on five Chinese firms accused of supporting the Russian war effort. These are not symbolic gestures, they are signs that Ukraine is increasingly realistic about the stakes and about China's alignment with Moscow. Support for Ukraine is not a distraction from U.S. competition with China. It is a critical part of it. Weakening Putin's military capacity weakens a key pillar of China's global strategy. And allowing Russia to continue its aggression without consequence would embolden Beijing's worst instincts from the Taiwan Strait to the South China Sea. To its credit, the Trump administration has begun voicing stronger concerns about Beijing's role. In the recently concluded round of trade talks, senior U.S. officials reportedly raised objections to China's purchase of sanctioned Russian oil and its sale of more than $15 billion worth of dual-use technology to Moscow. These are important warnings — but without follow-through, they risk being absorbed into the pattern of delay that Moscow and Beijing are already exploiting. The Graham-Blumenthal sanctions bill should move forward. It represents the most serious effort yet to impose real costs not only on Russia, but on the network of countries (especially China) helping it survive sanctions. It complements, rather than competes with, the administration's efforts to pressure Moscow. And it sends a message that the U.S. is serious about backing up its warnings with action. Countdowns can be useful. They create urgency. But urgency without follow-through is no substitute for strategy. What matters now is not how many days remain on the clock, but whether we are using each one to act. Jane Harman is a former nine-term congresswoman from California and former ranking member of the House Intelligence Committee, who most recently served as chair of the Commission on the National Defense Strategy. She is the author of 'Insanity Defense: Why Our Failure to Confront Hard National Security Problems Makes Us Less Safe.'
Yahoo
5 hours ago
- Yahoo
Resetting Asia's Apparel Map With a New World Sourcing Order
Although the key apparel sourcing countries of Bangladesh, Cambodia, Sri Lanka and Thailand won a reprieve with the steep drop in the imposed tariff numbers in president Trump's missive close to midnight on Thursday, manufacturers from the region largely reacted Friday with a cautious, 'Lets wait and watch' attitude. Thailand and Cambodia were both assigned a 19 percent tariff—down sharply from the original April rates of 46 and 47 percent, respectively—putting them on par with Indonesia's revised rate announced in July. More from Sourcing Journal Trump Announces Dozens of New Reciprocal Tariff Rates Trump Tariffs Face Sharp Scrutiny in Appeals Court Global Air Cargo Growth Stalls as Tariffs Hammer North American Airlines Among the other countries down to 19 percent are Pakistan, Philippines and Malaysia. Bangladesh and Sri Lanka now face 20 percent, down from the earlier 37 percent and 47 percent and now comparable to that for Vietnam's 20 percent announced in July. The greatest relief manufacturers in sourcing countries from Cambodia to Thailand, Bangladesh to Sri Lanka told Sourcing Journal was that with this new reset on tariffs 'it was perhaps a relatively level playing field after all.' President Trump announced an extra week for the tariffs to go into effect, on August 7. Regional analysts echoed the cautious optimism suggesting that 'negotiations weren't quite done yet' and there might still be room to bring the rates lower. For many in countries like Bangladesh and Cambodia, there was a sense of deep relief that factory shutdowns and mass job losses might now be averted. 'We're relieved for the time being—because our tariff, and those for competing countries, is now similar, and in some cases lower. It would have been better if it was 15 percent, though,' Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told Sourcing Journal. He added that buyers had begun reviving frozen orders, eager to restock ahead of the coming season. 'They don't want their racks empty.' Home to a $40 billion apparel export sector, Bangladesh's garment industry contributes more than 80 percent of the country's total export earnings, employing around 4 million workers. Asked if negotiations would go on in the coming days, he observed, 'We have to continue—maybe not in a formal sense but we have to continue working towards it. At this time, we are congratulating our government and those in the frontline for negotiating, and we have also been involved behind the scenes. We would like to focus on business now—it doesn't depend only on tariff—there are a lot of things that affect business—gas prices, interest rates, labor laws, law and order and the political situation—tariff is only one component.' Economists have begun weighing the long-term implications of the new tariff landscape. Mustafizur Rahman, distinguished Fellow at the Centre for Policy Dialogue (CPD), a leading think tank in South Asia in Dhaka observed, 'One way to look at it is that the tariff for Bangladesh is down from 35 percent to 20 percent. But it's still an additional cost burden. The relief for Bangladesh is that it is at least on par with Vietnam. From a competitive standpoint, that levels things.' However, he cautioned that trade-offs remain unclear. 'We know what we've received, but due to a non-disclosure clause, we don't yet know what we've given in return. While the apparel sector will benefit, it is important to know how the country itself will fare.' According to media reports, Bangladesh is expected to buy 25 Boeing aircrafts, increase wheat imports from the U.S., and amend labor laws by reducing the threshold for workers to form unions—from 30 percent to 20 percent. These developments have offered some reassurance following industry concerns raised after the 2025 Fashion Industry Benchmarking Study released by the U.S Fashion Industry Association (USFIA) earlier this week, which indicated that U.S. fashion executives plan to increase sourcing from Indonesia, India and Cambodia over the next two years, driving by a desire to diversify and mitigate risks. With India still facing 25 percent tariffs, down only by 1 percent from the earlier announcement of 26 percent – the rest of the region appears to be at an advantage. Ken Loo, secretary general of Cambodia's Textile, Apparel, Footwear and Travel Goods Association (TAFTAC), echoed regional sentiment. 'We're glad the rate has come down,' he said. 'We have no idea how this will impact buyers sourcing decisions and consumers yet. Everyone is adopting a wait-and-see approach. It is fortunate that we are all in the same ballpark. We will continue to work with the government to introduce measures that will reduce the cost of doing business and improve our competitiveness,' he added. Emerald Am, chairperson of the European Chamber of Commerce in Cambodia Garment and Manufacturing Committee said that the new rate restored the confidence and signaled a step toward renewed bilateral cooperation for manufacturers, giving them breathing room and an opportunity for brands to reinvest in Cambodian supply chains. According to media reports Cambodia will buy Boeing 737 Max aircrafts along with eliminating import tariffs, bringing them to zero. Sun Chanthol, deputy prime minister also observed that Cambodia agreed on improving labor standards and import inspection systems and U.S. concerns over non tariff barriers. Sri Lankan manufacturers likewise expressed relief at the 20 percent rate, with the Joint Apparel Association Forum (JAAF) stating it 'preserved the competitiveness of Sri Lanka's apparel industry in the key U.S. markets.' Roughly 40 percent of Sri Lanka's $4.8 billion apparel exports go to the United States. Meanwhile, government heads across the region have been much more vocal about the impact of the reduced tariffs, congratulating themselves, and claiming success. Muhammad Yunus, head of Bangladesh's interim government, described it a 'decisive diplomatic victory.' Malaysian trade and industry minister Zafrul Abdul Aziz said, 'This decision by the United States reflects the strong and enduring economic ties between our two nations.' Cambodian prime minister Hun Manet described it as a 'a great victory for Cambodia. This is great news for the people and the economy of Cambodia to continue to develop our nation,' he noted, referring to his phone call with President Trump last week. 'He told me that will make Cambodia happy (will make you happy). Today, his excellency decided to reduce the tax rate on goods imported from Cambodia to the United States to 19 percent'. Others also noted the reduction in tariffs to be 'a sign of friendship and partnership.' 'The announcement of the 19 percent tariff rate reflects the strong friendship and close partnership between Thailand and the United States. It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence, and opens the door to economic growth, increased income, and new opportunities for the country,'' Thailand's deputy prime minister and finance minister Pichai Chunhavajira noted in a post on Friday. 'The outcome of this negotiation signals that Thailand must accelerate its adaptation and move forward in building a stable and resilient economy, ready to face global challenges ahead,' he said. The sticking point for much of the region remains the issue of transshipment of goods, with its 40 percent levy—with much of the region intrinsically dependent on China in a variety of ways, how this point will be interpreted—and enforced—remains unclear, as do the final levy of tariffs on China which are still under discussion. 'There are many more unanswered questions,' said one Cambodian manufacturer, speaking anonymously. 'Will this change again in one week?' He admitted that many in the industry remained confused. 'But in a way, it feels like a reset button. We're all back in the same game again—and that's a relief.'
