EssilorLuxottica Eyes Continued Growth as GrandVision Boosts Europe Sales -- Update

   By Joshua Kirby 
 

EssilorLuxottica SA on Friday booked 2021 revenue growth driven by its main market in North America, but with Europe catching up following the acquisition of Dutch optical retailer GrandVision, and expects a similar growth pattern ahead.

The Franco-Italian eyewear group made total revenue of 17.85 billion euros ($19.62 billion,) excluding the contribution of GrandVision, whose acquisition was completed in the second half of the year. The figure is 8% higher at constant currency compared with 2019, before the pandemic.

Revenue including GrandVision came to EUR21.5 billion, 7.4% higher over two years on a comparable basis. Sales in the group's most important geographic region, North America, rose 13% to EUR9.87 billion versus 2019, while Europe, Middle East and Africa revenue was 3.7% higher at EUR7.95 billion. Following the consolidation of GrandVision, the region now makes up 37% of total group revenue, the company said.

North America had double-digit growth from the second quarter, helped by a buoyant macro-economic environment, EssilorLuxottica said. Bricks-and-mortar sales in the region grew in the double digits versus 2019, while e-commerce sales rose more than 75%.

The EMEA region was meanwhile affected by health-related restrictions early in the year but recovered well in the second half, though bricks-and-mortar comparable sales remained slightly negative, the company said.

"The sun business was heavily affected by restrictions in key countries as well as subdued tourism, with more encouraging trends emerging only toward the end of the third quarter," EssilorLuxottica said.

Revenue should continue to grow in the mid single digits this year and through 2026, the company said. EssilorLuxottica is also aiming for an operating margin of 19%-20% by 2026, compared with 17% in 2021.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

March 11, 2022 02:33 ET (07:33 GMT)

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