|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||127.75 - 130.55|
|52-week range||95.50 - 136.70|
|Beta (3Y monthly)||0.61|
|PE ratio (TTM)||39.70|
|Earnings date||27 Feb 2019 - 4 Mar 2019|
|Forward dividend & yield||2.04 (1.58%)|
|1y target est||124.83|
When we invest, we're generally looking for stocks that outperform the market average. And while active stock picking...
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.
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...
(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.
Looking at EssilorLuxottica Société anonyme's (EPA:EL) earnings update in December 2018, analyst consensus outlook...
Does the July share price for EssilorLuxottica Société anonyme (EPA:EL) reflect what it's really worth? Today, we will...
(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
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EssilorLuxottica declared an end to a feud between its French and Italian partners on Monday, saying it would drop all legal proceedings and focus on integrating the eyewear group formed by last year's 54 billion euro ($61 billion) merger. The company, which brings together Ray-Ban maker Luxottica and lenses specialist Essilor, also reaffirmed its ambition to find a new chief executive by the end of 2020. Shares in EssilorLuxottica, which have been rattled as the dispute was fought out in public, were up 0.27 percent at 1422 GMT, among the rare gainers on the Paris benchmark CAC-40 index, which was down 1.4 percent.