CHARENTON-LE-PONT, France—EssilorLuxottica posted solid financial results for the first half and second quarter of 2022 ended June 30, 2022. Consolidated revenue rose to €11,994 in first half 2022, a 37 percent increase at current exchange rates (+30.1 at constant exchange rates) versus first half 2021. Second quarter consolidated revenue rose to €6,387, a 36 percent increase current exchange rates (+27.5 at constant exchange rates) versus year-ago. Comparable revenue for the first half year rose 9.1 percent at constant exchange rates from year-ago (+14.7 at current exchange rates). Comparable revenue for the second quarter rose 7 percent at constant exchange rates (+13.9 percent at current exchange rates).
 
EssilorLuxottica noted that as a result of its acquisition of GrandVision, GrandVision’s revenue has been consolidated into EssilorLuxottica since July 1, 2021 for the second half of 2021 only. This affects the comparability of its financial results for the first semesters of 2022 and 2021.
 
EssilorLuxottica’s adjusted operating margin rose by 100 basis points to 18.4 percent in first half of 2022, driven by the company’s premium brands. Adjusted net profit was €1,548 million, up 26 percent versus year ago.
 
Francesco Milleri, chairman and CEO, and Paul du Saillant, deputy CEO at EssilorLuxottica commented, “We’re pleased to report a strong first half of 2022, with sound growth in all regions and a substantial increase of our operating margin. Our performance, particularly in a challenging environment, reflects the strength of our open network model, our willingness to push the boundaries of innovation and the skills and energy of our people. This benefits all our stakeholders, starting with our customers. At the same time, we paved the way for our long-term growth boosted by key projects and partnerships as well as the GrandVision integration, which is already bringing benefits. We launched the OneSight EssilorLuxottica Foundation to maximize our impact, an important step in achieving our goal to eradicate poor vision in the world in a generation. As we look ahead, we will continue to carry out the vision of our chairman Leonardo Del Vecchio, whose leadership and values remain an inspiration to all of us.”
 
In the first half of 2022, EssilorLuxottica’s Professional Solutions operating segment posted comparable revenue of €5,837 million, up 7.4 percent at constant exchange rates compared with the same period of 2021 (+13.5 percent at current exchange rates). All regions had a positive performance, the company said. North America and Asia Pacific grew mid-single digit, both experiencing a deceleration during the latter part of the semester. A toughening comparison base in North America impacted the performance from March onwards, while prolonged lockdowns in Mainland China weighted on the results of the Asia-Pacific region.
 
The company’s Direct to Consumer operating segment posted comparable revenue of €6,157 million in the first half of 2022, up 10.8 percent at constant exchange rates compared with the same period of 2021 (+16.0 percent at current exchange rates). Brick-and-mortar comparable-store sales were up double digits, led by EMEA and Latin America. Both North America and Asia-Pacific posted slightly positive performances. The optical category progressed steadily, while the sun business experienced a sharp recovery with Sunglass Hut being the best performer among the company’s main banners. E-commerce was up mid-single digit at constant exchange rates, driven by SunglassHut.com and EyeBuyDirect.com.
 
North America posted comparable revenue of €5,591 million in the first half, up 4.9 percent at constant exchange rates versus the first half of 2021 (+15.4 percent at current exchange rates).
 
In second quarter 2022, EssilorLuxottica’s wholesale business registered comparable revenue of €3,057 million, up 5.5 percent at constant exchange rates compared to the same period of 2021 (+13.0 percent at current exchange rates). North America was up low-single digit at constant exchange rates, after expanding high-single digit in 2021 versus 2019, with a healthy growth in luxury brands but more pressure in the low-end segment of the lens market.
 
EssilorLuxottica’s retail business posted comparable revenue of €3,330 million in the second quarter, up 8.5 percent at constant exchange rates compared to the same period of 2021 (+14.7 percent at current exchange rates). Brick-and-mortar comparable-store sales were 7 percent positive, with GrandVision and the other EssilorLuxottica banners equally contributing, with sun continuing to outpace optical.
 
North America kept slightly positive at constant exchange rates, with brick-and-mortar comparable-store sales weakening to flattish performance, due to the optical banners turning low-single-digit negative, and ecommerce stable versus the second quarter of last year, when the online business almost doubled. North America posted comparable revenue of €3,026 million, up 2.4 percent at constant exchange rates versus the second quarter of 2021 (+15.2 percent at current exchange rates) decelerating on the back of a strong comparison base last year, when the market experienced a sharp rebound in terms of consumer confidence and restored business conditions. Professional Solutions was up low-single digit at constant exchange rates. The lens business was slightly challenged with higher price competition on the lower-end unbranded portfolio dragging down the performance.
 
EssilorLuxottica said its flagship lenses delivered better results sustained by the success of the EssilorLuxottica 360 program, which doubled in size compared to last year now comprising more than 4,300 members. The frame business held up thanks to a favorable price-mix driven by luxury brands, while Ray-Ban and Oakley were negatively impacted by a tough comparison base in 2021. Contact lenses experienced a strong rebound in the quarter. Key accounts and department stores outpaced the other channels, while independent ECPs and third-party e-commerce, the growth engines of 2021, crossed into negative territory.
 
The Direct to Consumer division grew low-single digit at constant exchange rates in second quarter. LensCrafters posted negative low-single-digit comparable-store sales vis-a-vis a comparison base which was the toughest of the whole of last year (up double digits in the second quarter of 2021 versus 2019). EyeMed continued to grow double digits at constant exchange rates.