PARIS — Eyewear giant EssilorLuxottica posted an 8.4 percent rise in third-quarter revenue, helped by improved business in North America.
Revenue over the quarter reached 4.31 billion euros, up 5.2 percent at constant exchange, lifted by brisk growth in the company’s largest activity, lenses and optical instruments, which rose 7 percent at constant rates.
Analysts at RBC said the performance was in line with market expectations, but noted that Essilor’s sun and equipment businesses beat forecasts.
Luca Solca of Bernstein said the third-quarter performance was “another solid update” from the company, and noted “particularly convincing” growth in retail.
The North American division posted 2.3 billion euros in revenue, up 8.9 percent, lifted by a currency boost and an acceleration in sales. Business at Luxottica’s wholesale and retail divisions improved, the company said, citing digital investments at Sunglass Hut as paying off.
In Europe, revenue rose 6 percent at constant rates to 1.03 billion euros, with the company flagging a rebound in its sunglasses and readers activity, especially in the U.K. and Germany, along with double digit growth in e-commerce sales from Vision Direct.
Disruption in Hong Kong weighed on Luxottica’s activities, with less business from consumers traveling from Mainland China, the company noted. However, revenue overall in Asia was up 5.1 percent at constant rates to 701 million euros.
EssilorLuxottica was formed by the combination of France-based Essilor, a lensmaker that operates LensCrafters and Target Optical, and Italy’s Luxottica, which produces eyewear under license for brands including Bulgari, Burberry, Chanel and Giorgio Armani.
Early stages of the merger were plagued by a public dispute between top managers of the French and Italian factions of the company, and analysts are keeping a close eye out for any signs of tensions that could hinder future integration efforts.