EssilorLuxottica (EL) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue reached €6,437 million, up 4.0% at constant exchange rates, with all regions and segments contributing positively.

• Nine-month 2024 revenue totaled €19,727 million, up 4.9% at constant exchange rates, reflecting broad-based growth.

• Innovation and new product launches, including Ray-Ban Meta, Transitions Gen S, and Stellest, were key growth drivers, with Ray-Ban Meta a best-seller in 60% of EMEA stores.

• Recognized among Fortune's top-50 'Change the World' companies and expanded portfolio with new acquisitions.

• Latin America led regional growth, up 10.8% in Q3, with all major countries contributing.

Financial highlights

• Q3 2024 group revenue: €6,437 million, up 4.0% at constant and 2.3% at current exchange rates; nine-month revenue: €19,727 million, up 4.9% at constant and 3.0% at current rates.

• Professional Solutions Q3 revenue rose 3.4% at constant exchange rates; Direct to Consumer up 4.6% at constant rates.

• EMEA region delivered 5.6% growth at constant currency; fourteenth consecutive quarter of positive growth.

• North America Q3 revenue up 1.6% at constant currency; best comp sales in DTC for the year.

• Asia-Pacific Q3 revenue up 5.0% at constant rates; Stellest lens sales up 40% year-over-year.

Outlook and guidance

• Expectation of revenue acceleration in Q4, both organically and from consolidation of Supreme and Heidelberg.

• Targeting mid-single-digit annual revenue growth from 2022 to 2026 at constant exchange rates, aiming for €27–28 billion revenue and adjusted operating profit margin of 19–20% by 2026.

• Confident in margin expansion for 2024, stronger than previous year, and in achieving long-term targets with continued focus on innovation.

• Ray-Ban Meta and Transitions Gen S expected to remain key growth pillars.

• Integration and optical subscription programs in EMEA gaining traction, supporting future growth.