EssilorLuxottica shares rose sharply after the company reported third-quarter revenue above expectations. Growth came from its direct-to-consumer business and a 20% rise in wearables sales.
EssilorLuxottica shares surged more than 11% following the market open in Paris on Wednesday. The move followed third-quarter results that beat the consensus estimate.
Revenue tops forecasts
Quarterly revenue rose 9% to €7.49 billion, ahead of the €7.35 billion analysts expected. At constant exchange rates, revenue grew 7.2%, building on double-digit growth in the same quarter last year.
Direct-to-Consumer revenue increased 10.6% at constant currency to €4.09 billion, with comparable-store sales up 6.8%. Professional Solutions, however, grew 3.4% to €3.39 billion, against double-digit growth a year earlier.
Wearables and regions lead the gains
All regions contributed to growth. Asia-Pacific rose 15.7% at constant currency, while EMEA grew 7.5%, Latin America 7.1% and North America 4.7%.
The traditional Eyecare and Medtech business grew 6.5%. Wearables revenue, which includes AI glasses and Nuance Audio, rose to €486 million, and the myopia management portfolio grew 24%.
Chairman and CEO Francesco Milleri and Deputy CEO Paul du Saillant said: "Quarter after quarter, our Company continues to demonstrate the strength of its unique model." They added that new AI glasses launches and the rollout of Nuance Audio Plus are further strengthening the wearable portfolio as the holiday season approaches.
Nine-month figures
For the first nine months, revenue rose 6.8% to €22.3 billion, or 8.9% at constant currency. Analysts expect full-year revenue of €30.08 billion.
Source: Investing.com
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