Investors count down days to merger, as Luxottica sales increase
Investors are waiting with baited breath until the end of the month, desperate to see Chinese regulators give glasses kingpins Luxottica and Essilor the go-ahead to merge. The resultant company will be a titan in the eyewear world, with knowledge, networks and economies of scale that blows everyone else out of the water. Hence, it’s hard to get too excited about Luxottica’s recent earnings report – it was fine… good, even! But, compared to news that’s only days away, it just can’t compare.
Luxottica’s share price has risen this year as investors count down the days
SOURCE: Yahoo Finance
Focusing on results for just a minute then: net sales in the second quarter rose by 1.4% from the year-ago quarter on a constant currency basis. Adjusted operating income rose to €781 million, an increase of 0.5% from the same period in 2017. Adjusted net income saw a bigger gain at 11.6%, once more reported on a year-on-year and constant currency basis.
Leonardo Del Vecchio, Luxottica’s executive chairman, made the following comment: “I’m pleased with the very good group results. The growth in the markets where we completed the new commercial strategy, including North America and Asia, confirm the value and effectiveness of the initiatives undertaken. We look with confidence at Europe’s prospects, the region where we are reorganizing our distribution strategy."
“We are continuing to invest in product excellence and innovation. Our ‘made in Japan’ manufacturing capability and Barberini’s lenses further expand our luxury portfolio. The group’s digital evolution is ongoing. Our e-commerce business is more and more important in our strategy and our communication is now focused on digital and social media. Considering the positive trends we are also seeing in July, we confirm our outlook for 2018.”
When it comes to the bigger news, you’ll have to wait until July 31. That’s the new date for regulators to give the green light (both Luxottica and Essilor have expressed confidence that the light definitely will be green). Having been put back by a month, it’s getting harder and harder to wait… but rest assured, once the wait is over, we’ll have the scoop waiting for you right here.
Dominion holds Luxottica in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.