EssilorLuxottica is expecting revenue to “decelerate with a material impact on profitability” in the coming quarter, in direct response to COVID-19. While the company experienced expected growth in January / February, business conditions began to deteriorate in March.
Essilor’s industrial sites in France have now been closed in response to COVID-19, however it says production continuity is assured thanks to its worldwide network of interconnected plants and laboratories. Essilor says this includes all production facilities in China, which are now back to full speed and have spare capacity.
Luxottica’s manufacturing plants have temporarily suspended activity in Italy and other smaller locations, but are back to normal in China.
EssilorLuxottica and its two operating companies are implementing a contingency plan including cost and cash control measures, putting on hold non-crucial investment initiatives and rightsizing global capacity to meet current demand levels.