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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.
Panmure Morning Note 20-03-2017
20 Mar 17
Today’s strong H1FY17 trading statement is encouraging on multiple levels; (1) H1FY17’s revenue growth of c.+23% to £32m indicates revenue growth running well above our forecast assumption of +15% for FY17 (August 2017); (2) the revenue growth continues to be broad-based across the two main brand groups (Focusrite and Novation) and all of TUNE’s global regions (USA, Europe, and RoW); (3) H1FY17’s constant currency revenue growth of c.+12% is a sequential acceleration from the c.+9.5% of H2FY16 and c.+5.5% of H1FY16; and (4) H1FY17’s net cash of £9.4m is well ahead of our forecast of £7.7m by August 2017, reflecting strong revenue/profit conversion combined with much improved w/c control. In short, we think there is excellent scope for our FY17 forecasts to be raised at the time of the H1FY17 results on May 3. We maintain our BUY.
20 Mar 17
Focusrite has positioned itself in a way that makes its shares a particularly attractive investment: leadership in a niche product area protected from general consumer swings; an international market structure that makes it relatively currency agnostic; a habit of profit over delivery; a strong and further strengthening balance sheet; and an undemanding valuation. This first half trading statement confirms every one of those points.
10 for 17
09 Jan 17
As always at the start of a year, there are significant uncertainties about the year ahead but I think in 2017, the level of uncertainly has decisively moved up a gear. In fact, a leading economist at the LSE, Ethan Ilzetzki, was recently quoted as saying “I view the current global economic environment as the most uncertain in modern history”. Wow.
Management hopes for a better 2017
21 Mar 17
BMW’s final 2016 accounts were, compared to what we had anticipated, slightly disappointing. We had said so when preliminary numbers were released earlier this month. Today’s guidance for 2017 shows slight growth in all categories, i.e. volume, revenue and consolidated pre-tax earnings are all projected to go up. Reading between the lines, the statement suggests that the EBIT margin generated by the Automobiles division is likely to fall further (it was down from 9.2% to 8.9% in 2016). Whether Financial Services can again increase its margin (it was up by 0.1pp to 8.4% last year) remains to be seen and will also depend on the price development of used vehicles.