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Research Tree provides access to ongoing research coverage, media content and regulatory news on LUXOTTICA GROUP SPA. We currently have 7 research reports from 1 professional analysts.
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LUXOTTICA GROUP SPA
LUXOTTICA GROUP SPA
A promising acceleration in Q4
02 Mar 17
Luxottica reported a nice acceleration in growth in Q4, mitigating the slowdown experienced in the first nine months. Sales were up 5.2% at CER (+6.3% reported) to €2,142m in Q4. The revamping of directly operated stores is bearing fruit and pushed the retail network to outperform and grow by 8.9% at CER to €1,384m, while wholesale slumped by 0.9%. The company experienced favourable market momentum in Europe and the Americas, although other regions remained depressed. Full-year sales edged up 3.9% at CER (+2.8% reported) to €9,086m boosted by a rise of 6.8% in retail revenue which reported a significant dynamism in almost all regions, except Asia where the momentum is still deteriorating. Sales in Europe soared by 6.9% to €1,700m. In North America, sales were up 4.2% to €5,370m. Revenue in Asia retreated slightly by 1.9% to €1,158m. The Online activity has performed well and expanded by 24% at CER. The operational performance was hit by relevant restructuring costs. The gross margin retreated by 260bp to 65.3%, due to lower gross profit of €5,932m. Operating profit declined by 2.3% to €1,345m, corresponding to an operating margin of 14.8%. However, net profit benefited from non-recurring income and lower cost of debt of up to €850.5m (+5.8%), despite significant restructuring costs. The first weeks of 2017 are sending promising growth signs with a marked recovery in China. The proposed dividend is €0.92 vs. €0.89 in 2015.
The slowdown continues in Q3
25 Oct 16
Luxottica maintained its pace of growth in Q3 and posted a low single-digit rate amid a tough backdrop. Adjusted group sales were up 1.4% at constant rates (+1.2% reported) to €2,225m. Retail sales outperformed with a 4.4% surge to €1,425m, while wholesales slipped 3.6% to reach €800m. E-commerce sales surged 18% in Q3 sustained by an important online expansion. By region, the weak momentum in North America reduced sales slightly to €1,347m in Q3 compared to €1,357m a year earlier. This market remains by far the largest one, contributing 61% to the quarter’s sales. The performance in Latin America was notable as sales edged up 6.8% to €134m. In Europe, the company showed a strong resilience, surging 8.3% at constant FX to reach €386m. In Asia Pacific, underlying revenues slipped 0.2% to reach €283m. Other regions dropped 5%. Until September, wholesales amounted €6,944m, i.e. a slight retreat (-0.1% reported) halted by adverse FX moves (in H1) as sales at constant rates edged up 1.5%. Retail was up 2.8% to reach €4,174m while wholesale slid 0.3% to €2,770m. The growth was underpinned by the acceleration in Latin America (+11%) and the strong momentum maintained in Europe (+5.7%). The resilience to the slumping demand in China stemmed the crash in Asian sales to 0.6%. The major market grew 0.2% to €4,085m, boosted by a favourable retail momentum (+1.5%). Some recovery signs saw the light by early Q4 in North America and Hong Kong.
Disappointing Q1 sales growth
18 May 16
Luxottica will no longer publish its first and third quarter earnings release or management statement but will continue to report half-year and full-year consolidated results. Q1 sales adjusted were up 1.8% at CER (2.5% reported) with the wholesale division +2.1% and retail 1.6% adjusted.
Disappointing performance in Q4
22 Mar 16
Q4 operating margin declined 240bp (8.9% vs 11.3%) after 20 consecutive quarters of growth. Over the full year, the operating margin improved by 50bp. Operating CF grew by only 8.8%, due to an increase in inventories (in order to serve clients better) and in taxes paid (+62%).
Q4 sales helped by forex
02 Feb 16
# The co-CEO Adil Khan is to leave. Leonardo Del Vecchio will assume the executive responsibility for Markets. # Q4 sales grew 2% at CER (7.9% reported). FY15 sales grew 4.3% at CER (15.5% reported). Wholesale grew 7.1% at CER in Q4 (6.9% for FY15) and retail -1.2% in Q4 and +2.3% in FY.
A bit disappointing
28 Oct 15
Q3 sales grew by 15.4% as reported and +5.5% at CER (respectively +19.7% and +6.4% for the first nine months). Adjusted operating profit grew by 18.6% (vs +31.4% in Q2). Wholesale net sales were +10.1% (+6.8% at CER) and retail sales +18.8% (+4.7% at CER). Debt-to-adjusted EBITDA amounts to 0.6x despite high capex.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)
Small Cap Breakfast
24 Apr 17
Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April on AIM raising £122m. ADES International Holding— Intends to join the Standard List of the Main Market in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
Mature market growth still negative, despite beat in Q1
20 Apr 17
Unilever (ULVR LN, HOLD, T/P 3800p) released their Q1 trading statement this morning – Q1 underlying sales grew 2.9%. Turnover increased 6.1% to €13.3bn, in front of Bloomberg consensus of €13.2bn. Despite trading market conditions being described as tough, Unilever grew pricing by 3.0%, but saw volume declining 0.1%.