(Boursier.com) — EssilorLuxottica camped below 180 euros this Wednesday, while Bernstein remains at ‘market performance’ on the file, while adjusting its objective from 187 to 176 euros. The announcement of consolidated turnover of €6.29 billion in the third quarter, down 1.6% at current exchange rates, but up 5.2% at constant exchange rates, confirmed the resilience of the eyeglass maker. The optical giant has validated its objective of annual turnover growth of around 5% between 2022 and 2026 at constant exchange rates and aims to achieve an adjusted operating profit of around 19 to 20% of income at the end of this period…
There has been recent debate over the extent to which the company can increase its margin in the second half of 2023, given cost challenges and moderating revenue growth… Citi (‘buy’) also estimated that third quarter sales came out in line, while revenue growth in North America came out similar to the second quarter, despite concerns about the slowdown in the US optical market… The overall impression is reassuring, even if the current debate between investors focuses on the progression of margins in the second half, on which management has given no indication.
For Jefferies (‘hold’), third quarter sales confirmed a “growth stack” that is holding up better than many consumer discretionary peers. North America is holding up satisfactorily, while Europe “continues to impress”.
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