reports
- Jelena Sokolova
Morningstar | Essilor and Luxottica See Improving Performance in 3Q; F...
We retain our wide moat rating and fair value estimate of EUR 127 per share for EssilorLuxottica, as the companies have reported third-quarter results broadly in line with expectations and confirmed full-year guidance. The call was given for the Essilor business only, as the merger process is under way, while the joint EssilorLuxottica shareholders' meeting, with an update on integration and common goals, is expected on Nov. 29. At Essilor, performance accelerated in the third quarter, resultin...
- Jelena Sokolova
Essilor and Luxottica See Improving Performance in 3Q; FVE Maintained
We retain our wide moat rating and fair value estimate of EUR 127 per share for EssilorLuxottica, as the companies have reported third-quarter results broadly in line with expectations and confirmed full-year guidance. The call was given for the Essilor business only, as the merger process is under way, while the joint EssilorLuxottica shareholders' meeting, with an update on integration and common goals, is expected on Nov. 29. At Essilor, performance accelerated in the third quarter, resulting...
- Jelena Sokolova
Morningstar | Luxottica's First-Half Results In Line With Expectations...
We retain our fair value estimate for the EssilorLuxottica combined entity, as Luxottica reported half-year results in line with our expectations. The firm reiterated its full-year guidance but stated that the results will likely be in the lower bound (in line with our expectations). The firm expects to obtain merger approval in China by the end of July (as conditions for the merger are being discussed). Discussions with Turkish antitrust authorities are also being finalised. China is the only ...
- Jelena Sokolova
Luxottica's First-Half Results In Line With Expectations; FVE Maintain...
We retain our fair value estimate for the EssilorLuxottica combined entity, as Luxottica reported half-year results in line with our expectations. The firm reiterated its full-year guidance but stated that the results will likely be in the lower bound (in line with our expectations). The firm expects to obtain merger approval in China by the end of July (as conditions for the merger are being discussed). Discussions with Turkish antitrust authorities are also being finalised. China is the only r...
- Jelena Sokolova
Luxottica continues to expand with increased investment in technology,...
We retain our wide moat rating for the combined EssilorLuxottica entity after Luxottica reported a rather disappointing set of results with several positive and negative one-offs. We derive our fair value estimate for Luxottica from our combined EssilorLuxottica model and see shares trading at a 15% discount to our fair value estimate, in 4-star territory. Excluding the effects of weather-related disruptions, the organic sales trend from the first half continued over the nine months with 1.8% gr...
- Jelena Sokolova
Luxottica's 3Q Muddied With One-Offs, but Medium-Term Cost Advantage I...
We retain our wide moat rating for the combined EssilorLuxottica entity after Luxottica reported a rather disappointing set of results with several positive and negative one-offs. We derive our fair value estimate for Luxottica from our combined EssilorLuxottica model and see shares trading at a 15% discount to our fair value estimate, in 4-star territory. Excluding the effects of weather-related disruptions, the organic sales trend from the first half continued over the nine months with 1.8% gr...
- Jelena Sokolova
Luxottica continues to expand with increased investment in technology,...
We are launching coverage of EssilorLuxottica as a combined entity with a wide moat rating and fair value estimate of EUR 117 per share. Our valuation assumes the merger is finalised by the end of the year. This results in an upgrade to our fair value estimate to EUR 117 from EUR 95 for Essilor's stand-alone shares, and an upgrade to EUR 54 from EUR 45 for Luxottica's stand-alone shares. We believe that after a recent pullback, shares offer modest upside of around 10%. We believe EssilorLuxotti...
- Andreea Hotaranu
Narrow-Moat Luxottica Increases Grip on Distribution Channels and Figh...
We retain our narrow moat rating and fair value estimate after Luxottica delivered first-half 2017 results slightly below our expectations with 4.2% sales growth (1.8% at constant currencies). We look forward to updating our report and valuation for Luxottica shortly as we transition coverage of the stock to a new analyst and incorporate the impact of the merger with Essilor. All of the growth stemmed from new openings and acquisitions, as comparable-store sales remained negative and wholesale s...
- Andreea Hotaranu
Luxottica's Full-Year Sales Slightly Below Our Estimates; Shares Tradi...
Narrow-moat Luxottica's 2016 results came in slightly below our top-line estimates but showed improvement in earnings per share. Full-year sales of EUR 9 billion were up 3%, or 4% at constant exchange rates, driven by the retail segment. While we will incorporate the full financial results into our valuation model, we don't expect any significant change in our EUR 45 fair value estimate, leaving the shares trading slightly above our valuation. North American retail, the largest segment at EUR 4....
- Andreea Hotaranu
Luxottica-Essilor Merger Will Result in a Vertically Integrated Eye-Ca...
On Jan. 16, 2017, Luxottica and Essilor announced a merger that will create a global integrated eyewear leader with approximately 15% market share. The transaction will result in a vertically integrated group, from production (Essilor--lenses, Luxottica--frames), to distribution, leveraging Luxottica’s extensive retail channels. Both businesses have economic moats: We currently award a narrow economic moat rating to Luxottica and a wide economic moat rating to Essilor, based on sizeable manufa...
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