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Ray-Ban’s Parent Company Sees Sales Slowdown In North America

Ray-Ban’s Parent Company Sees Sales Slowdown In North America

Ray-Ban’s Parent Company Sees Sales Slowdown In North America (1)

EssilorLuxottica saw its sales in the North American market dip in the second quarter — an indication that the company might struggle to sustain sales if the U.S. economy were to slide into a recession.

The Ray-Ban maker’s adjusted operating margin increased by 100 basis points to 18.4% in the year’s first half, primarily driven by increased sales of its more upscale brands.

“The main driver of that margin expansion for the first half was very much our price mix,” said finance chief Stefano Grassi on a call with analysts, adding that new product launches and the company’s luxury and branded lens portfolios helped drive performance.

That being said, improvements in the company’s operating margin were offset by the slowdown in North America, which is EssilorLuxottica’s largest market.

“This dovetails with market concerns about an upcoming recession, to which EssilorLuxottica would be more exposed, given its larger and broader consumer audience,” Bernstein analyst Luca Solca told Reuters.

Overall, the company’s comparable Q2 revenue reached $6.5 billion, marking a 7% improvement, with Europe, the Middle East, and Africa (EMEA) region recording double-digit growth.

Looking ahead, Grassi remains bullish on growth prospects in the North market, with sales expected to improve in both professional and consumer segments in July.

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