EssilorLuxottica - ADR

Strong Q1 Performance: EssilorLuxottica reported a revenue increase of 7.3% at constant currency and 8.1% at current exchange rates for Q1 2025. This was driven by double-digit growth in Asia-Pacific (10.4%) and a notable 9.9% growth in EMEA, demonstrating strong regional performance with Latin America also rising approximately 9%, while North America posted a mid-single-digit growth at 4%.

Acquisition Contribution: The two recent acquisitions (Heidelberg Engineering and Supreme) contributed approximately 2 percentage points to the top-line growth, indicating successful integration and potential for further sales increase. However, excluding these acquisitions would still see the company maintaining a mid-single-digit growth rate, aligning with its long-term guidance for 2022-2026.

Pricing Adjustments Amid Tariffs: Faced with U.S. tariffs, EssilorLuxottica is planning single-digit price increases across its product lines in North America. This is critical given that tariffs mainly impact frames imported from China, which is a significant part of their U.S. operations, constituting 43% of revenue from the region.