by Valentine Baldassari
(Reuters) – EssilorLuxottica on Friday reported higher third-quarter revenue, driven by a rebound in sales in the Asia-Pacific region and modest growth in North America.
Sunglasses maker Oakley and Ray-Ban reported revenue of 6.39 billion euros in the quarter ended September 30, up 8.2% year-on-year at current exchange rates .
Asia-Pacific was the region that recorded the best performance with revenue of 761 million euros, up 22.7% compared to the third quarter of 2021.
Retail activity rebounded strongly in the region, after suffering the impact of COVID-19-related lockdowns in mainland China in the second quarter, the group said.
Sales also increased in North America, EssilorLuxottica’s largest market, with sales at €3.01 billion, up 3.4%, driven by the direct-to-consumer division (Direct to Consumer), the group said.
“It’s a solid and reassuring publication,” Cédric Lecasble, an analyst at Stifel, told Reuters, noting a “resilient” performance in North America and a “good surprise” in other regions, particularly in Europe in a context of macroeconomic slowdown and in Asia.
While EssilorLuxottica’s large consumer base in the United States and Europe exposes the group to macroeconomic pressures in these regions, the company is more insulated from inflation than its competitors in the discount eyewear segment thanks to its licensing luxury, said Bernstein analyst Luca Solca.
Despite fears of a possible economic recession which could jeopardize the post-pandemic rebound of the luxury sector, the Hermès group, maker of the iconic Birkin bag, said on Thursday that it saw no signs of slowing down until now, with US customers taking advantage of the strong dollar when shopping in Europe and China having rebounded strongly, echoing recent, equally optimistic comments from LVMH, owner of Louis Vuitton.
The Franco-Italian eyewear maker, which makes eyewear for brands such as Chanel, Prada and Versace, also reiterated its long-term outlook presented in March and confirmed at its Investor Day last month.
The title fell 3% on the Paris Stock Exchange at 08:28 GMT, against a decline of 1.67% for the CAC 40.
(Valentine Baldassari, with contributions from Mimosa Spencer; French version Diana Mandiá, editing by Kate Entringer)
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