BUSINESS: ICYMI EssilorLuxottica Reports Solid Growth for Year to Date By Staff Friday, November 1, 2019 10:09 AM CHARENTON-LE-PONT, France—EssilorLuxottica (Reuters: ESLX.PA) reported consolidated revenue of €13,086 million for the nine months ending Sept. 30, 2019, a year-on-year increase of 7.7 percent compared to the 2018 first nine months pro forma revenue, an increase of 4.3 percent at constant exchange rates. Essilor led this performance with sales growth of 8.9 percent on a reported basis and of 5.9 percent at constant exchange rates. Lenses & Optical Instruments were a key driver, with sales of €5,090 million, up 8.4 percent, and 5.6 percent at constant exchange rates.Luxottica recorded 6.7 percent growth in revenue (+3.0 percent at constant exchange rates), posting the same level of performance for the third-quarter and nine-month period, on the back of positive trends in both the Wholesale and Retail divisions.Fast-growing markets, which represented close to 20 percent of consolidated sales, led the growth of the company, with a sales increase around 10 percent at constant exchange rates. The direct online channel, which represented around 5 percent of consolidated sales, also contributed significantly, with sales growth of around 15 percent at constant exchange rates, led by double-digit growth on Ray-Ban.com, Oakley.com, SunglassHut.com and in Essilor’s prescription eyeglasses offers.“The continuous improvement in our performance validates our growth strategy as well as our investments in product innovation, digitalization, fast-growing markets and talent. This acceleration further demonstrates our ability to execute the business plan and deliver sales and cost synergies,” said Francesco Milleri and Laurent Vacherot, both non-independent directors of EssilorLuxottica. “On this basis we will confirm our efforts to transform the industry and eliminate poor vision throughout the world.”EssilorLuxottica’s third-quarter sales climbed to €4,310 million, up 8.4 percent from year ago, and 5.2 percent on a constant currency basis. Essilor sales during the quarter rose to €1,953 million, up 10.5 percent over year ago, and 7.5 percent on a constant currency basis. Luxottica sales rose to €2,357 million, a 6.7 percent increase from year ago, and 3.4 percent on a constant currency basis. The acceleration versus the first and the second quarter (3.7 percent and 4.1 percent, respectively) was primarily driven by the Lenses & Optical Instruments and Retail divisions, according to EssilorLuxottica.Lenses & Optical Instruments sales in the third-quarter rose 9.9 percent to €1,713 million (+7.0 percent at constant exchange rates), driven by new products, online sales and fast-growing markets, notably the successful launch of Transitions Signature GEN 8 lenses in the U.S. The Instruments department also contributed to the division’s performance thanks to the new VisiofficeX, a measuring tool for ECPs that customizes patient lenses, as well as the Vision-RTM 800 that allows faster and more precise refraction in increments of one-hundredth of a diopter. E-commerce continued its double-digit growth, driven by prescription offers and contact lenses, the company noted.Wholesale sales were up by 4.4 percent to €749 million in the third quarter (+1.6 percent at constant exchange rates), fueled by all regions with the exception of Asia-Pacific. North America performed well across independents, department stores and third-party e-commerce channels. Retail sales grew 7.8 percent to €1,608 million (+4.2 percent at constant exchange rates), with comparable store sales up 1 percent in the third quarter. Sales accelerated due to North America, with Sunglass Hut turning positive, Target Optical still delivering double-digit growth and the insurance business performing strongly. In North America, revenue grew by 8.9 percent to €2,298 million in the third quarter. This represents an increase of 4.2 percent at constant exchange rates, a sharp acceleration versus the first half of the year (+1.9 percent).