The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Luxury eyewear company EssilorLuxottica raised its operating margins substantially in the first half of the year, it said on Friday, despite a challenging environment.
The maker of Oakley and Ray-Ban sunglasses said its adjusted operating margin rose by 100 basis points to 18.4 percent in the six months to June 30.
“We’re pleased to report a strong first half of 2022, with sound growth in all regions and a substantial increase in our operating margin,” chairman and chief executive officer Francesco Milleri said in a statement.
The group reported comparable revenue rising 7 percent to €6.39 billion ($6.53 billion) for the second quarter at constant exchange rates, with the Europe, the Middle East and Africa (EMEA) region continuing to bounce back with double-digit growth.
ADVERTISEMENT
All its main markets countries were positive, with the exception of China and Russia, the group said.
The company said that recently integrated Dutch eyewear retailer GrandVision’s comparable-store sales grew 7 percent in the second quarter.
EssilorLuxottica also reiterated its targets for 2022 to 2026.
Last month the group’s chairman, Leonardo Del Vecchio, died at the age of 87. The billionaire founded the Luxottica business in 1961 and remained the chairman and a major shareholder in the world’s biggest eyewear group after it combined forces with France’s Essilor in 2018.
By Jagoda Darlak and Agata Rybska; Editors: Clarence Fernandez and David Goodman
Learn more:
EssilorLuxottica Bid for GrandVision Poised for EU Approval
EssilorLuxottica SA’s bid for eyewear retailer GrandVision NV is on track for European Union regulatory approval as soon as this month, clearing one hurdle for the deal even as talks on the future combination continue.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.
As the French luxury group attempts to get back on track, investors, former insiders and industry observers say the group needs a far more drastic overhaul than it has planned, reports Bloomberg.
After growing the brand’s annual sales to nearly €2.5 billion, the star designer has been locked in a thorny contract negotiation with owner LVMH that could lead to his exit, sources say. BoF breaks down what Slimane brought to Celine and what his departure could mean.