EssilorLuxottica announces that in light of the evolving COVID-19
pandemic, the Company’s outlook for 2020 published on March 6, 2020 is no longer
valid.
In January and February, the company delivered solid growth, in line
with its full year targets. Business conditions began deteriorating in March as
the virus shifted from impacting predominantly China to entire regions of
Europe and North America. During the second quarter, the Company expects
revenue to further decelerate with a material impact on profitability. At
present, the Company has insufficient visibility to provide an assessment of
the full scope of COVID-19 impact, as the situation remains volatile.
Essilor has temporarily closed all its industrial sites in France.
Production continuity is ensured thanks to the company’s worldwide network of
interconnected plants and laboratories. This includes all production facilities
in China, which are now back to full speed and have spare capacity. E-commerce
activities are growing with no back orders.
Luxottica’s manufacturing plants have temporarily suspended their
activity in Italy and other smaller locations, while they are back to normal
levels in China. Stores in Europe and North America are complying with the
temporary lockdown measures that local governments are putting in place, while Company’s
e-commerce platforms continue to operate globally.
In the context of the COVID-19 pandemic, and with the likelihood of
prolonged uncertainty, EssilorLuxottica has decided to stop the implementation
of its share buyback program announced on March 17, 2020.
Since March 17, 2020, 1.55 million shares for an average price of Euro
102.54 have been repurchased.
For the full trading update press release, click HERE.
Click HERE for the press release on the suspension of the share buyback program.