|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||134.20 - 135.85|
|52-week range||95.50 - 137.30|
|Beta (3Y monthly)||0.57|
|PE ratio (TTM)||41.06|
|Earnings date||27 Feb 2019 - 4 Mar 2019|
|Forward dividend & yield||2.04 (1.49%)|
|1y target est||124.83|
2019 Capital Markets DayEssilorLuxottica is uniquely positioned to transform and accelerate the industry through its open business model * Integration well under way with progress in several areas and initial decisions taken to build a unified company * Long term revenue growth at mid-single digit excluding strategic acquisitions and the currency effect thanks to the balanced growth across all geographies and businesses along with a growing contribution from Direct-to-Consumer activities and Fast-Growing Markets1 * Adjusted2 operating and net profit at constant exchange rates expected to grow faster than sales in the long term London, United Kingdom (September 25, 2019 – 7:00 pm CET) – EssilorLuxottica, a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses, hosted its 2019 Capital Markets Day in London today, presenting its strategic vision, integration progress and long-term financial guidelines.“This is a milestone moment for EssilorLuxottica because we have successfully mapped out our go-forward strategy and initiated the first concrete moves of the integration. The teams are working well together, and we are fully energized about what the future holds, not just for us, but for the entire industry,” commented Francesco Milleri, Deputy Chairman – CEO of Luxottica Group."We are very pleased to have shared the first steps towards the unification of EssilorLuxottica today including our strategic vision for the eyecare and eyewear industry, our latest innovation and an update on our integration progress. I am increasingly confident in our future each time I see the dedication, talent and expertise of our strong teams around the world. Together, we will take great strides to bring better vision to the billions of people in need around the world,” added Laurent Vacherot, CEO of Essilor International.Strategic Vision In a presentation to investors, EssilorLuxottica shared its strategic vision for the future, where combining the strengths of Essilor and Luxottica will open up new avenues for growth and enable the Company to achieve its purpose, “see more, be more, and live life to its fullest”.EssilorLuxottica’s plans to grow its business and the broader industry are rooted in the following pillars: * An open business model where eyecare and eyewear products are accessible to everyone, everywhere. This will be made possible as the Company shifts to a global network model made up of stores, prescription laboratories, logistics hubs, R&D centers and digital properties, all connected in real time and benefiting from advanced analytics and data * Accelerated Innovation that leverages both companies’ research and development; supply chain advancement by combining frames and lenses for the complete pair; revolutionizing the eye exam; developing smart eyewear and new categories * Reshaping the consumer journey from refraction exam, awareness and storytelling to access and convenience to digitally enabled stores * Embedding sustainability at EssilorLuxottica’s core: from responsible environmental practices to philanthropic initiatives to employee shareholding Progress on the Integration During the first nine months of the year, the Company put in place a structured process to drive integration and deliver synergies. The net impact on adjusted2 operating profit of those synergies is expected to be in the range of: * Euro 300 to Euro 350 million in the period 2019/2021 * Euro 420 to Euro 600 million by 2022/2023With the ultimate objective of building a unified company, EssilorLuxottica has launched more than 20 priority work streams and 160 business initiatives that are being implemented globally. This activity is under the leadership of more than 40 key executives with the full commitment of dedicated teams involving more than 800 employees across the two organizations.First steps include: * The creation of one single supply chain and prescription laboratories network * The integration of Costa in the Luxottica’s brand portfolio and frame network * The introduction of a Co-location model to systematically review headquarters locations for EssilorLuxottica * A pilot project in Italy to define one single IT platform to be quickly rolled out across the Company’s organizationBuilding the foundations of a new common culture The Company is building the foundations of a new culture by combining the best of both worlds. This includes Essilor’s employee shareholding culture and Luxottica’s welfare traditions, to name a few examples. On September 26, the Company will start campaigning its new global employee shareholding plan. For the first time, the plan will include Luxottica’s employees in Italy, paving the way for a full roll-out of the initiative within EssilorLuxottica globally in the future. As of today, more than 46,000 Essilor employees are EssilorLuxottica shareholders.Guidelines on financial targets EssilorLuxottica will continue to rely on a strong foundation for future growth, including state-of-the-art research and development, strong brands, sustainable growth levers, and powerful human capital. In the long-term (up to 2023), the Company’s ambition on financial targets, all of which exclude the impact of strategic acquisitions and currency effect, is as follow: * Sales: mid-single digit growth with a growing contribution from Direct-to-Consumer activities and Fast-Growing Markets1 * Adjusted2 operating profit: 1.0–1.4x sales * Adjusted2 net profit: 1.0–1.5x salesNotes1 Fast-Growing Countries or Markets: include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia, Eastern Europe and Latin America. 2 Adjusted measures or figures: adjusted from the expenses related to the combination between Essilor and Luxottica and other transactions that are unusual, infrequent or unrelated to the normal course of business as the impact of these events might affect the understanding of the Company’s performance.EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, its mission is to help people around the world to see more, be more and live life to its fullest by addressing their evolving vision needs and personal style aspirations. The company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to set new industry standards for vision care and the consumer experience around it. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux® and Transitions®, and world-class retail brands including Sunglass Hut and LensCrafters are part of the EssilorLuxottica family. In 2018, EssilorLuxottica had nearly 150,000 employees and pro forma consolidated revenues of Euro 16.2 billion. The EssilorLuxottica share trades on the Euronext Paris market and is included in the Euro Stoxx 50 and CAC 40 indices. Codes and symbols: ISIN: FR0000121667; Reuters: ESLX.PA; Bloomberg: EL:FP. CONTACTSEssilorLuxottica Investor Relations (Charenton-le-Pont) Tel: + 33 1 49 77 42 16 (Milan) Tel: + 39 (02) 8633 4870 E-mail: email@example.comEssilorLuxottica Corporate Communications (Charenton-le-Pont) Tel: + 33 1 49 77 45 02 (Milan) Tel: + 39 (02) 8633 4470 E-mail: firstname.lastname@example.org Attachment * DOWNLOAD PDF VERSION OF THE NEWS RELEASE
Growing demand for vision correction should boost sales of Ray Bans and other eyeglasses, EssilorLuxottica SA said on Wednesday, with profits also driven by cost cuts of up to 600 millions euros (£527.71 million) a year from 2022 following the merger of French lenses specialist Essilor and Italian spectacles maker Luxottica. EssilorLuxottica is targeting mid-single digit sales growth at constant exchange rates for the next five years, it said in a presentation on the company website ahead of an investor day in London. In 2018, sales at EssilorLuxottica were up 3.2% at 16.1 billion euros.
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Third Point, run by billionaire investor Daniel Loeb, is targeting EssilorLuxottica amid a power struggle inside the world's largest lenses and glasses manufacturer, following its formation last year through a 48 billion euro ($53 billion) merger of France's Essilor and Italy's Luxottica. Billed as a merger of equals, it degenerated into a battle over control between Luxottica's founder Leonardo Del Vecchio and Essilor's chief Hubert Sagnieres.
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(Bloomberg Opinion) -- It took three years, but Snap Inc. has finally worked out a wise pricing strategy for its Spectacles smartglasses, which incorporate an embedded camera to record short video clips.That’s not just because the new sticker price of $380 for the third generation of glasses, announced Tuesday, will let the social network milk a healthier gross margin from each pair than the previous two versions, which were were priced at $130 and $150 respectively. The higher price point could also counterintuitively help Snap sell Spectacles in more stores.It can be hard to persuade people to buy sunglasses they can’t try on, so an in-store presence is essential. Since Snap introduced Spectacles in 2016, the company has struggled to persuade eyewear distributors to stock them because of their cost, which competed with non-smartglass offerings. The low price also made it harder for the smartglass industry as a whole by making consumers accustomed to cheaper products.Consider EssilorLuxottica SA, the French-Italian firm that dominates the U.S. eyewear market — Jefferies analysts estimate its share of the global market is 30%. It owns Ray-Ban, Oakley, LensCrafters, Sunglass Hut, Persol, Sears Optical and many other brands. Although the company’s business is vertically integrated — it makes the lenses and frames and then sells them in its own stores — it doesn’t have a major smartglass offering.That might have created an opening for Snap to persuade the firm to stock its Spectacles, which are made by the Chinese contract manufacturer Goertek Inc. The problem was that they were sold more or less at cost, meaning there was little scope for the retailer to make a profit. What’s more, at $130, they undercut Ray-Ban’s own Wayfarer Classics, which cost $153, but with more functionality.. Those glasses helped EssilorLuxottica deliver a 63% gross profit margin last year. The Charenton-le-Pont, France-based firm would have cannibalized its own sales for no profit. By lifting the price to $380, Snap will not only do more to cover its own costs but make it more attractive for third parties to sell the glasses in their stores. And by making them limited edition, Snap is less likely to risk a repeat of the $40 million writedown for unsold inventory it had to take in 2017.Whether the glasses are priced attractively enough to draw consumers is a different issue. But getting the glasses into stores will only help bolster their revenue, which was “not material” to earnings in the second quarter. Snap CEO Evan Spiegel should have opted for a higher price from the outset.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- You don’t need 20-20 vision to see who was the driving force behind EssilorLuxottica SA’s $8.1 billion agreed purchase of GrandVision NV. Leonardo Del Vecchio, the acquirer’s forceful chairman and biggest shareholder, said in the deal statement that the transaction was the realization of a long-held dream for him.Del Vecchio has already combined his Italian eye-frame designer Luxottica, home to the Ray-Ban brand and many others, with the French lens maker Essilor in a $53 billion merger. GrandVision adds a third element: An optical retail division that spans Europe, including the Vision Express chain. This gives the group even more control over the eye-care process, from manufacturing to contact with end customers. Analysts at Bloomberg Intelligence don’t, however, foresee any antitrust problems – after all, the first much bigger deal was waved through.That the GrandVision purchase was so personally dear to Del Vecchio perhaps bodes well for future harmony at EssilorLuxottica, which had been riven by tension between the 84-year-old Italian billionaire and Hubert Sagnieres, the Essilor boss and vice-chairman of the combined company. The two did reach a fragile truce back in May, but making an $8 billion purchase is certainly bold given that the original Essilor-Luxottica merger was only completed in October.The fact that the two sides have managed to patch things up to the extent they were able to negotiate this chunky deal is encouraging.EssilorLuxottica certainly seems to be Del Vecchio’s show now, perhaps inevitably given his control of a 32% stake. There are similarities with another Italian billionaire, Stefano Pessina, who built his Walgreens Boots Alliance Inc. empire through a series of deals in Europe and then the U.S. to control pharmaceutical distribution and retail.Del Vecchio and Sagnieres may have been motivated to make a move on GrandVision so quickly because of worries about potential rival interest from private equity, which is awash with cash and snapping up unloved companies. The Dutch target’s share price had languished before Bloomberg reported the deal talks earlier this month.As it is, a 33.1% premium to the closing price on July 16, the day before the talks were disclosed, looks palatable to both sides. GrandVision shares rose to 26.70 euros on Wednesday, just below the offer price of 28 euros (rising to 28.42 euros if the transaction doesn’t close within 12 months). Bernstein analysts estimate that the purchase would be 5%-6% accretive to earnings per share in 2019 and 2020, without synergies.Still, Del Vecchio and Sagnieres have a lot on their plate now. The bringing together of Essilor and Luxottica has only really just begun in earnest, in an effort to generate promised annual savings of 600 million euros. Unusually, they haven’t put a figure on the cost savings they might reap from GrandVision. More detail will come in time, perhaps at an investor day in September, but not calculating the potential benefits is disappointing.The greatest hazard is that hostilities between Del Vecchio and Sagnieres reignite. With plenty still riding on the original deal, and a chunky acquisition now in the mix, recruiting a single chief executive to oversee the integration is more important than ever. They’ll also need considerable diplomatic skills to navigate the diverse factions on the board.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
EssilorLuxottica is buying Dutch opticians group GrandVision for up to 7.2 billion euros ($8 billion) in cash to take control of thousands of stores where it sells spectacles and lenses. The deal marks a new milestone for EssilorLuxottica, which was formed last year from the merger of French lens maker Essilor and Italian eyewear group Luxottica, but which has been hit by disputes over who should run the group. GrandVision, whose chains include Vision Express in Britain and For Eyes in the United States, would give EssilorLuxottica control of more than 7,000 outlets across the world where it already sells brands including Varilux lenses and Ray-Ban sunglasses.
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(Bloomberg Opinion) -- The $53 billion eyewear merger of France’s Essilor and Italy’s Luxottica was a tie-up that screamed strategic logic. But it’s been thrown off course by issues beyond its industrial merits.The same danger applies to attempts by the combined company, EssilorLuxottica SA, to acquire GrandVision NV, a European optical retailer whose stores include Vision Express.To recap: Back in January 2017, the lens-maker Essilor and the frame designer Luxottica agreed to merge. Combining lenses and frames made sense. It would create more firepower for research and development, pivot the group toward more expensive prescription lenses and defend it against the twin threat of online rivals and luxury companies seeking to make more of their own branded eyewear rather than letting other firms do it for them.Unfortunately, the deal’s strategic benefits have been overshadowed by a bitter falling out between the billionaire Luxottica founder Leonardo Del Vecchio and Essilor’s boss Hubert Sagnieres, which led at one point to the threat of arbitration from Del Vecchio over alleged violations of the merger agreement.The two men have since reached a fragile truce and are looking for a single CEO to better manage their differences. But given the context of their previous rancor, the new takeover talks with GrandVision’s controlling shareholder HAL to buy its 77% stake in the group look bold.As with the first merger, the industrial logic is there. The Dutch target would add a significant optical retail presence in Europe, something that EssilorLuxottica lacks. Yet this offer has come much earlier than expected. While analysts at Bernstein speculated recently that an approach like this could be on the cards, they suggested it might be three to five years away.Essilor and Luxottica only completed their merger in October, so the integration process is just getting started. With GrandVision they would have to incorporate another large business. At 28 euros per share, the price being discussed, GrandVision would be valued at 7.1 billion euros ($8 billion). That’s just 14% of EssilorLuxottica’s market capitalization but it’s far from insignificant, especially given how much work still needs to be done on the original merger.GrandVision would further complicate the assimilation and could be another management distraction, particularly if there are competition issues to be dealt with (EssilorLuxottica already has a very dominant position in eyewear). As part of the truce, the Franco-Italian company has handed operational control to Francesco Milleri from the Luxottica side and Laurent Vacherot from the Essilor camp, while they look for a single CEO. Still, given the animosity earlier in the year, there’s no guarantee the peace will last. It’s been hard for Del Vecchio, who owns 32% of the combined group, to relinquish his grip. Should the GrandVision deal go ahead, EssilorLuxottica’s combination would become a double bet. The first is that the original merger will fulfill its strategic potential and deliver the promised yearly savings of up to 600 million euros. The second wager is that EssilorLuxottica can digest GrandVision while doing all of this. Given the peculiarities of this situation, and the personalities involved, both have long odds.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
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Disclosure of Share Capital and Voting Rights Outstanding as of May 31, 2019(Pursuant to Article L.233-8 II of the French Commercial Code and articles 221-1 and 223-16 of the General Regulations of the Autorité des Marchés Financiers)Charenton-le-Pont, France (June 5, 2019 - 6:00 pm) \- As of May 31, 2019, shares and voting rights outstanding of EssilorLuxottica, the global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses, breaks down as indicated below. May 31, 2019 Shares outstanding 436,070,6651 Number of real voting rights (excluding treasury shares) 434,970,908 Theoretical number of voting rights (including treasury shares) 436,070,665 It is to be noted that voting rights are capped at 31%, applicable to any shareholder, in accordance with a formula contained in article 23 of EssilorLuxottica’s by-laws2.For further information, please consult the Prospectus which received Visa No. 18-460 from the AMF on September 28, 2018 and its Securities Note Supplement which received Visa No. 18-494 from the AMF on October 23, 2018, available on the website www.essilorluxottica.com.EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, its mission is to help people around the world to see more, be more and live life to its fullest by addressing their evolving vision needs and personal style aspirations. The Company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to set new industry standards for vision care and the consumer experience around it. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux® and Transitions®, and world-class retail brands including Sunglass Hut and LensCrafters are part of the EssilorLuxottica family. In 2018, EssilorLuxottica had nearly 150,000 employees and pro forma consolidated revenues of Euro 16.2 billion. The EssilorLuxottica share trades on the Euronext Paris market and is included in the Euro Stoxx 50 and CAC 40 indices. Codes and symbols: ISIN: FR0000121667; Reuters: ESLX.PA; Bloomberg: EL:FP. CONTACTSEssilorLuxottica Investor Relations (Charenton-le-Pont) Tel: + 33 1 49 77 42 16 (Milan) Tel: + 39 (02) 8633 4870 E-mail: email@example.com EssilorLuxottica Corporate Communications (Charenton-le-Pont) Tel: + 33 1 49 77 45 02 (Milan) Tel: + 39 (02) 8633 4470 E-mail: firstname.lastname@example.org * * * 1 Including 365 shares delivered but not yet registered. 2 EssilorLuxottica’s by-laws are available on the Company’s website under the section Governance / Publications or by clicking here. Attachment * DOWNLOAD PDF VERSION OF THE NEWS RELEASE
With a market capitalization of €44b, EssilorLuxottica Société anonyme (EPA:EL) is a large-cap stock, which is...