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EssilorLuxottica Publish Q3 2023 Financial Results
- Group’s revenue up 5.2% in Q3 at constant exchange rates
- North America in line with the second quarter, supported by optical
- EMEA strong, driven by Professional Solutions and optical retail
- Varilux XR ramping up nicely, Stellest doubled in China
- Swarovski off to a promising start
- Ray-Ban Meta launched, the next generation of smart glasses
EssilorLuxottica has announced that consolidated revenue for the third quarter of 2023 totaled Euro 6,294 million, representing a year-onyear increase of 5.2% at constant exchange rates compared to the third quarter of 2022 (-1.6% at current exchange rates).
“We first would like to express our heartfelt solidarity with our colleagues in Israel and their families, as well as with all those suffering from the devastating situation. Our Company, like our people, is incredibly resilient. This past quarter, every business and geography in our Group contributed to the sound growth, with recent launches like the Varilux XR series and Swarovski gaining traction. The bold and transformational approach we promised to take at EssilorLuxottica is being realized today through initiatives like Ray-Ban Meta, Nuance Audio and Helix – these moves will light the way for the industry for many years to come. We are doubling down on our strengths, including our operations footprint, with a new plant in Rayong, Thailand, that truly showcases the EssilorLuxottica vision with frames and lenses under the same roof. This is a significant step in our commitment to better address the growing global visual care needs while expanding and balancing our geographical footprint.
We are confident and proud to bring every one of our colleagues and partners along on this journey with us”, commented Francesco Milleri and Paul du Saillant, respectively Chairman and CEO and Deputy CEO at EssilorLuxottica.
Highlights
Revenue in the first nine months of 2023 was up 7.2% compared to 2022 with the year-to-date trend continuing to exceed the mid-single-digit long-term target. The third quarter was in slight deceleration compared to the first-half due to a weaker sun retail business now also affecting the EMEA region on top of North America, and a tougher comparison base in Asia-Pacific. The prescription business confirmed its resilience relying on a strong price-mix sustained by the successful launch of the Varilux XR series globally and the continued, excellent performance of Stellest. Both segments contributed equally well to the overall results.
Direct to Consumer
In the third quarter, the retail segment registered revenue of Euro 3,316 million, up 4.7% compared to the same period of 2022 (-1.5% at current exchange rates).
All the regions were on the rise in the quarter. North America grew with the optical banners and the managed vision care business, while the sun business confirmed the negative trend of the previous quarters. In EMEA, the optical networks continued to grow strongly reaping the benefits of the integration in progress, while the sun category decelerated affected by adverse weather conditions. Asia-Pacific rose double digits, with the Australian optical business nicely growing against a challenging comparison base. Latin America expanded high-single digit, driven by the optical banners. Overall comparable-store sales were up 4%, while e-commerce was slightly negative mainly dragged by the sun business in North America.
North America
North America posted revenue of Euro 2,839 million, up 2.1% compared to the third quarter of 2022 (-5.6% at current exchange rates), in line with the performance of the previous quarter.
Professional Solutions was up low-single digit. The lens business achieved positive results fueled by the premium brand portfolio, in particular Varilux. The introduction of the XR series in July already delivered a visible impact on the quarterly performance, predominantly in the independent channel, as its penetration ramped up swiftly helping the overall favorable price-mix. Trends in the frame business were bolstered by the continued momentum in the luxury license portfolio. Contact lenses grew strongly, in line with the trend of the first half of the year.
Direct to Consumer was up low-single digit. The segment was strongly supported by the vision care offering, including the optical brick-and-mortar banners and the managed vision care divison, while the sun business continued to be a drag. Comparable-store sales at LensCrafters, Target Optical and Pearle Vision were all positive driven by the excellent performance of customers backed by vision insurance and a positive price-mix. Comparable-store sales at Sunglass Hut remained negative throughout the quarter. 
EMEA
EMEA posted revenue of Euro 2,317 million, up 6.9% compared to the third quarter of 2022 (+2.4% at current exchange rates), with both segments equally strong.
Professional Solutions was up mid-to-high-single digit. All countries registered a positive performance with the only exception of Scandinavia. The growth in the emerging markets of EMEA outpaced the nonetheless solid results of the mature markets with the key countries of France, Italy, the UK and Germany all contributing. The lens business continued to advance positively with the progressive portfolio in good shape boosted by the new Varilux XR series. Frames were still the best performing category thanks to a robust contribution of sunglasses and prescription frames starting to advance on a more dynamic pace. The first Swarovski collection was received with great enthusiasm by the market starting from September.
Direct to Consumer was up mid-to-high-single digit. Comparable-store sales in optical were up 9% underpinned by the continued, strong performance in the key banners of Vision Express (UK), Générale d’Optique (France), Salmoiraghi & Viganò (Italy) and Synoptik (Scandinavia). The integration process of the former GrandVision stores is well on track with an increasing share of EssilorLuxottica’s own products on the shelves as well as the upgrade of the assortment into a higher value offering.
Comparable-store sales at Sunglass Hut were up low-single digit in the quarter with July and August strained by adverse weather but bouncing back in September as the meteorological conditions improved.
Asia-Pacific
Asia-Pacific posted revenue of Euro 760 million, up 11.7% compared to the third quarter of 2022 (flat at current exchange rates), on top of the strongest quarter of last year.
Professional Solutions was up double digits. China was the best performing country effectively
leveraging its myopia control portfolio in the back-to-school season. Stellest doubled its revenues once again. On top of that, the frame portfolio delivered an excellent quarter driven by Ray-Ban, Oakley and luxury as well as Bolon in China. India, Japan and South Korea all grew double digits.
Direct to Consumer was up double digits. Comparable-store sales in OPSM grew on a tough comparison base sustained by a favorable price-mix and a successful in-store execution. The retail performance in China continued to be highly favorable with comparable-store sales advancing at double digits in both LensCrafters and Sunglass Hut. The latter continued to expand strongly also in Southeast Asia.
Latin America
Latin America posted revenue of Euro 377 million, up 6.2% compared to the third quarter of 2022 (+4.1% at current exchange rates), in slight deceleration compared to the previous quarter.
Professional Solutions was up mid-single digit driven by a robust Mexico. The performance in the region was supported by both categories. The frame business was bolstered by a buoyant Ray-Ban in Brazil, while the lens business was boosted by Varilux growing double digits.
Direct to Consumer was up high-single digit. The growth of the region was driven by optical with comparable-store sales up accordingly driven by the progressing integration of the former GrandVision banners in Mexico and GMO confirming its sound growth trajectory. Sunglass Hut comparable-store sales continued to be solid in the region.
1st nine month’s revenue
In the first nine months of 2023, revenue amounted to Euro 19,145 million, up 7.2% versus the same period of 2022 (+4.1% at current exchange rates), with both Professional Solutions and Direct to Consumer pacing on an equal rate.
Professional Solutions was up 7.2% versus the first nine months of 2022 (+3.9% at current exchange rates), with all regions positive. Asia-Pacific was the fastest growing region, while the others progressed on a broadly similar, solid pace. Direct to Consumer grew 7.2% (+4.3% at current exchange rates), delivering double-digit growth across all the regions except North America dragged by a weak Sunglass Hut. The overall growth of the segment was driven by the optical category.
All regions grew in the first nine months of the year. Asia-Pacific, up 15.7% (+7.9% at current exchange rates), strongly contributed thanks to the reopening of China. The solid growth in EMEA, +8.8% (+5.6% at current exchange rates) and Latin America, +8.8% (+9.0% at current exchange rates), both came on top of a double-digit performance last year. North America was up 3.6% (+1.5% at current exchange rates), helped by the resilience of its optical business.
Read EssilorLuxottica’s 2023 financial results so far here:
