EssilorLuxottica improves margin in challenging market

By Jagoda Darlak

(Reuters) -Luxury eyewear company EssilorLuxottica raised its operating margins substantially in the first half of the year, it said on Friday, despite a challenging environment.

The maker of Oakley and Ray-Ban sunglasses said its adjusted operating margin rose by 100 basis points to 18.4% in the six months to June 30.

“We’re pleased to report a strong first half of 2022, with sound growth in all regions and a substantial increase in our operating margin,” Chairman and Chief Executive Officer Francesco Milleri said in a statement.

The group reported comparable revenue rising 7% to 6.39 billion euros ($6.53 billion) for the second quarter at constant exchange rates, with the Europe, the Middle East and Africa (EMEA) region continuing to bounce back with double-digit growth.

All its main markets countries were positive, with the exception of China and Russia, the group said.

The company said that recently integrated Dutch eyewear retailer GrandVision’s comparable-store sales grew 7% in the second quarter.

EssilorLuxottica also reiterated its targets for 2022 to 2026.

Last month the group’s chairman, Leonardo Del Vecchio, died at the age of 87. The billionaire founded the Luxottica business in 1961 and remained the chairman and a major shareholder in the world’s biggest eyewear group after it combined forces with France’s Essilor in 2018.

($1 = 0.9790 euros)

(Reporting by Jagoda Darlak and Agata RybskaEditing by Clarence Fernandez and David Goodman)