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EssilorLuxottica Reports Q1 Revenue Up 38% Compared to Q1 2021

EssilorLuxottica’s first-quarter 2022 revenue represents another quarter of double-digit growth.

• Revenue at Euro 5.6 billion, up 38% vs 2021
• Comparable revenue up 11.5% at constant exchange rates, all regions positive
• EMEA and Latin America up double digits, North America still robust
• Sound progression in optical, driven by branded lens portfolio
• Ray-Ban and Oakley up double digits

EssilorLuxottica today announced that consolidated revenue for the first quarter of 2022 totalled Euro 5,607 million, representing a year-on-year increase of 33.1% at constant exchange rates compared to the first quarter of 2021 (+38.1% at current exchange rates). On a comparable basis, revenue grew by 11.5% at constant exchange rates (+15.7% at current exchange rates).

Francesco Milleri and Paul du Saillant, respectively CEO and Deputy CEO of EssilorLuxottica, said: “We’re very pleased to report a strong start to the year, with a solid performance in all regions and divisions showing positive results. It’s a great moment for EssilorLuxottica – we are off to a good sun season, demand for luxury brands continues and our innovative products like Stellest are beginning to rewrite the story of sight for so many people. The fast-pace integration of GrandVision represents a meaningful milestone in our journey as a vertically integrated network company, committed to growing the industry for all stakeholders.”

Comparable revenue
To fully appreciate the performance of the Company resulting from the acquisition of GrandVision, comparable revenue has been prepared for illustrative purposes only.

Professional Solutions
In the first quarter of the year the division’s comparable revenue reached Euro 2,780 million, up 9.6% at constant exchange rates compared with the same period of 2021 (+14.0% at current exchange rates).

The performance was positive in all regions, with EMEA and Latin America growing double digits and North America and Asia-Pacific respectively posting high-single-digit and mid-single-digit growth. North America accelerated, mainly driven by the growth of the key accounts, sport channel and third-party e-commerce platforms. The strong performance of EMEA was supported by major countries, such as the UK, Germany and Spain. Asia-Pacific progressed nicely thanks to Mainland China, positive in the first two months of the year, as well as Southern Asia, Japan and India. Latin America experienced a strong rebound compared to the first quarter of last year, with Brazil and Mexico growing double digits. Ray-Ban, Oakley and the luxury brands drove the growth on the frame side and the Company’s branded lenses pushed the performance in the optical category.

Direct to Consumer
In the first quarter the division posted comparable revenue of Euro 2,827 million, up 13.5% at constant exchange rates compared with the same period of 2021 (+17.5% at current exchange rates).

Direct to Consumer expanded in all regions at constant exchange rates, except for Asia-Pacific (flat at current exchange rates). EMEA and Latin America drove the performance, both expanding by around 20% at constant exchange rates, while North America grew high-single digit supported by both physical banners and e-commerce platforms.

Brick-and-mortar comparable-store sales grew double digits, thanks to Latin America and EMEA, rebounding strongly compared to the first quarter of 2021 when severe restrictions affected results in the two regions. North American comparable-store sales grew by 3%, while the Asia-Pacific region posted a slightly negative performance. The optical and sun categories both contributed to the overall performance, with Sunglass Hut as the top performer among the Company’s main banners.

E-commerce revenue grew 9% at constant exchange rates, with Oakley.com and SunglassHut.com as the best performing platforms.

Revenue by geographical area

EMEA
EMEA recorded comparable revenue of Euro 2,054 million, up 18.0% at constant exchange rates versus the first quarter of 2021 (+17.1% at current exchange rates), driven by the solid growth of the underlying business combined with a favorable comparison base last year when the brick-and-mortar stores were heavily impacted by COVID-19 restrictions.

Professional Solutions had a strong start posting double-digit comparable sales growth versus the first quarter of 2021. The solid results were supported by all trade channels, with independent ECPs and key accounts expanding at a double-digit pace. Most of the countries contributed to the positive performance, led by the UK, Germany and Spain as top contributors. Varilux, Transitions and Eyezen were the growth drivers in the lens portfolio, while Stellest sales gained further momentum, also thanks to the roll-out to new markets in the region. On the frames side, sunglasses led the performance supported by Ray-Ban and Oakley.

Brick-and-mortar comparable revenue grew by 25% versus last year, on the back of a comparison base highly impacted by COVID-related store closures, with approximately half of the Sunglass Hut locations closed. The business proved to be strong even compared to pre-pandemic levels, with the only exception of the airport locations, still suffering low traffic. Sunglass Hut comparable-store sales were up triple digits with all stores open, while the optical segment including GrandVision’s banners and Salmoiraghi & Viganò increased double digits.

North America
The North American region posted comparable revenue of Euro 2,565 million, up 7.8% at constant exchange rates versus the first quarter of 2021 (+15.8% at current exchange rates), with the two operating segments equally contributing.

The Professional Solutions division grew high-single digit in the quarter, driven by sun frames at double digits, with Oakley and the luxury brands outperforming, as well as Varilux, Transitions and Crizal lenses. Key accounts, sport retailers and third-party e-commerce players drove the overall results, while the independent ECPs decelerated in the period.

The brick-and-mortar retail stores positively contributed, with comparable-store sales increasing by 3% compared with the first quarter of 2021. LensCrafters and Target Optical increased low-single digit, while Sunglass Hut continued to outperform with comparable-store sales up mid-single digit. E-commerce revenue grew high-single digit, driven by a sound performance of SunglassHut.com, followed by Ray-Ban.com and Oakley.com. EyeMed’s business continued to expand, with total membership exceeding 68 million lives.

Asia-Pacific
Asia-Pacific recorded comparable revenue of Euro 685 million, up 3.1% at constant exchange rates versus the first quarter of 2021 (+7.3% at current exchange rates), despite some headwinds impacting the region with new lockdowns due to COVID-19 in Mainland China and Hong Kong, heavy floods in Australia and a new wave of the pandemic hitting India in January.

The Professional Solutions business expanded by mid-single digit. Mainland China posted positive sales until February, then deteriorating in March due to the increasing number of COVID-19 outbreaks and subsequent lockdowns. Stellest continued to gain momentum in the country, recording exponential growth of the units sold. The performance of the other markets in the region was characterized by a strong Southern Asia benefitting from a progressive deconfinement, a solid Japan supported by strong growth in the frame and AFA business and a sound acceleration of India in the second part of the quarter.

Brick-and-mortar comparable-store sales were low-single-digit negative, with flattish Australia as a result of a mixed performance between the different banners. OPSM decelerated into negative territory due to heavy floods and a spike in COVID-19 cases impacting its store locations. Conversely, Sunglass Hut posted a double-digit growth in the first quarter with revenue driven by both volumes and price-mix. Mainland China was negative with about three fourths of the fleet impacted by COVID-19 related closures or subdued traffic in the month of March. South-East Asia gained momentum following the progressive reopening of the region.

Latin America
Latin America posted comparable revenue of Euro 302 million, up 21.2% at constant exchange rates versus the first quarter of 2021 (+27.8% at current exchange rates), rebounding strongly with all the main countries in the region posting double-digit growth compared to last year when multiple lockdowns impacted the performance.

The Professional Solutions division was supported by double-digit growth in the key countries of Brazil and Mexico. The Brazilian market benefited from the expanding EssilorLuxottica 360 initiative, with independent ECPs and key accounts outperforming other trade channels. In Mexico both lenses and frames increased, with key accounts, independent ECPs and department stores all contributing.

Comparable revenues of the brick-and-mortar stores increased double digits at constant exchange rates, benefiting from the lifting of COVID-19 related restrictions which affected the first quarter of 2021. Brazilian banners grew strongly, with Sunglass Hut and Oakley both contributing. The performance of Sunglass Hut in the whole Latin American region was robust, with comparable-store sales above 40%. The recovery in Chile and all the other countries drove GMO’s double-digit comparable-store sales growth. The GrandVision network posted solid results, with all countries growing and the Sun business turning double-digit positive in the period.