EssilorLuxottica withdraws 2020 outlook in light of COVID-19
The company has seen an impact on business conditions as the coronavirus pandemic spreads across the globe
While the company said it delivered “solid growth” in the first two months of the year, in line with its full year targets, this changed in March as the impact from COVID-19 began to be felt across Europe and North America.
EssilorLuxottica shared that it expects to see revenue further decelerate during the second quarter, “with a material impact on profitability.” In a statement EssilorLuxottica said: “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 as of 27 March.
Despite this, the company suggested its network of plants and laboratories will ensure production continuity – including facilities in China which are now “back up to speed.” E-commerce activities are also growing with no back orders, the company said.
Luxottica’s manufacturing plants have temporarily suspended activity in Italy and other smaller locations, though manufacturing is back to normal levels in China. The company’s e-commerce platforms also continue to operate globally.
Luxottica’s brand stores in Europe and North America are complying with the temporary lockdowns put in place by the governments.
Its portfolio includes retail brands such as David Clulow Opticians and Sunglass Hut, which are among the retailers that have temporarily closed their physical stores in line with advice to contain the spread of COVID-19.
In a statement, David Clulow Opticians said: “The wellbeing of our customers and staff is our utmost priority. In accordance with the public health advice issued by the UK Government to contain spread of COVID-19, our opticians will remain closed until further notice. We will see you again soon, stronger than before.”
In the meantime, EssilorLuxottica confirmed the company and the two operating companies are implementing a contingency plan. This includes cost and cash control measures, putting non-crucial investment initiatives on hold, as well as rightsizing global capacity in order to meet the current demand levels.
OT endeavours to keep the most up-to-date news on our website and this information was correct when published. However, the situation regarding COVID-19 is rapidly evolving. Please check OT’s rolling optics-specific coverage for the latest news and guidance on COVID-19.