MILAN, May 5 (Class Editori) - At the end of a quarter of the year marked by the coronavirus effect on the accounts, EssilorLuxottica recorded a recovery in the Chinese market. In particular, sales of prescription lenses on the domestic market started to grow again compared to the same period of last year starting from the end of April, despite the fact that the total turnover is still in contraction. "The company is ready for a wide recovery thanks to a pipeline of innovative products for its brands that are well suited to the changed context", explained the eyewear group founded by Leonardo Del Vecchio.
Between January and March, total turnover was 3.7 billion euro, down 10.9 percent at constant exchange rates. The optical business was less impacted (down 5.8 percent to 1.589 billion), and online sales showed double-digit growth. E-commerce has strengthened since March, the group explained, as consumers made purchases of prescription glasses and contact lenses online. The Sunglasses & Readers business had a 20.5 percent drop in sales to 134 million and Equipment down 14.4 percent to 38 million. Luxottica's Wholesale division reported 695 million euro in turnover, down 19.8 percent and Retail 1.327 billion, down 10.3 percent.
However, last month's data bode well. EssilorLuxottica has, in fact, explained that although the turnover decreased further in April, the essential need to improve eyesight is structural and drives the unepressed demand when the crisis subsides, making the optical business one of the first sectors to restart. Online sales, for example, accelerated in March, when they reached 7 percent of the company's turnover against 5 percent for the whole quarter, and further increased in April.
In this context, however, it was China that guaranteed continuity together with the network of connected plants and laboratories all over the world. With the production plants that had temporarily suspended their activity in Italy and in other smaller locations, they returned to full capacity in the People's Republic of China from the end of March, with sufficient stocks, underlines the eyewear group founded from the merger between the Italian Luxottica and the French Essilor.
In March, however, the group had issued a warning on revenues in light of the evolution of the health emergency triggered by the coronavirus. The guidance for the current year was +3/5 percent for sales at constant exchange rates and only reflected the impact of COVID-19 seen in China and in some other markets mainly in Southeast Asia.
(Source: Class Editori)
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