Summer Hit on the Investment Market

It’s summer, and the Northern European press is once again full of warnings about traveling south due to high temperatures. Here in Southern Spain, where it’s never cold, most people wear sunglasses. Today, I want to talk about EssilorLuxottica, a company that thrives during the summer vacation season.

EssilorLuxottica: World Leader in Eyewear

EssilorLuxottica is the global market leader in eyewear. You might not know the company directly, but you’re likely familiar with the brands it owns, such as Ray-Ban, Armani, Burberry, and Chanel. EssilorLuxottica made headlines with its acquisition of the Supreme brand from VF Corporation for 1.5 billion dollars in cash.

Supreme: A Strong Brand with a Loyal Following

Supreme was founded in 1994 in New York and became immensely popular, especially among young people. I remember visiting London a few years ago with my son when he insisted on going to a Supreme store. We stood in line for more than an hour just to get inside. The brand has a loyal following and a strong market position.

EssilorLuxottica’s Market Position and Financial Performance

EssilorLuxottica owns no less than 150 brands and holds a 36% market share in Europe and 47% in North America. The company is listed on Euronext Paris and has a market capitalization of approximately 85 billion euros. It was formed from the merger of a French and an Italian company in 2018 and currently employs 149,000 people.

Financial Figures

EssilorLuxottica’s financial figures are impressive. Revenue for this year is estimated at 26 billion euros, with earnings per share around 7 euros. With a share price of around 200 euros, that equates to a Price/Earnings ratio of about 28. While this may not be particularly low, the market expects revenue and profit growth in the coming years. The company also offers an attractive dividend yield of approximately 2%. Despite the recent rise in its share price, it remains a solid investment with a strong market position and high margins.

Future Prospects and Meta’s Potential Interest

Recent news suggests that Meta may be considering acquiring a 5% stake in EssilorLuxottica. This is partly due to the existing glasses that Meta has launched together with Ray-Ban. With its strong brand portfolio and market leadership, EssilorLuxottica is a robust player in the eyewear industry.

Conclusion

I hope this column has given you a better understanding of EssilorLuxottica. It is a fascinating company with a rich history and a promising future. Whether you were already familiar with their brands or not, EssilorLuxottica remains a powerhouse in the market. If you have any questions or would like to know more about this topic, please feel free to contact us. We would love to hear from you!